If two firms playing Cournot are identical with decreasing average costs, how should the firms divide production to maximize joint profits?
What will be an ideal response?
One firm should produce the monopoly output and divide the profit with the other firm. This will generate the largest possible profit for the two firms.
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The goal of the defendant is to ________ their ________.
A) maximize; gain B) minimize; loss C) minimize; gain D) maximize; loss
Government provide public goods such as national defence because:
a) governments are more efficient than private firms at producing public goods b) people do not value national defence very highly c) of the potential that private firms will make excess profit d) of the free-rider problem which results in underproduction by private firms
The stock of knowledge, skills, and talents that people possess is called personal capital.
Answer the following statement true (T) or false (F)
Refer to the given data. If Alpha and Omega each was producing at alternative B before trade, the gain from specialization and trade would be:
A. 30 tons of wheat.
B. 15 tons of steel.
C. 30 tons of steel and 30 tons of wheat.
D. 60 tons of wheat and 60 tons of steel.