Suppose Cournot duopolists firms face the same market demand curve, but have differing costs. At the Nash-Cournot equilibrium, the firm with the lower cost will
A) have a lower price for its product than its competitor.
B) produce a smaller output than its competitor.
C) have a higher price for its product than its competitor.
D) produce a larger output than its competitor.
D
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When product A is a substitute for product B, the cross-price elasticity of demand for products A and B will be _____
a. unity b. negative c. positive d. decreasing e. increasing
Type II error is:
a. when a beneficial drug is blocked from entering a market. b. easy to detect and seldom happens. c. the statistical notion of rejecting a true hypothesis. d. when a harmful drug is allowed into the market.
Productivity is output per unit of ___________.
Fill in the blank(s) with the appropriate word(s).
Suppose a firm overpays its workers at the start of the job, and then the firm slowly lowers wages over time until eventually the firm pays the workers considerably less than the worker's marginal product of labor. What prevents this "reverse of a delayed-compensation scheme" from being implemented?
A. The firm would need to enforce a mandatory retirement age, which is illegal in the United States. B. Workers would leave the job as soon as the firm tried to pay the worker less than his or her value of marginal product. C. Workers prefer wages to increase over time. D. The workers would never have an incentive to invest in general training. E. The firm would fire the worker as soon as the worker's value of marginal product exceeded the worker's wage.