Describe the Cournot model
What will be an ideal response?
The Cournot model is a model of a two-firm industry (duopoly) in which a series of output-adjustment decisions leads to a final level of output between the output that would prevail if the market were organized competitively and the output that would be set by a monopoly.
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When the price of Ford pickup trucks rises from $18,000 to $19,000, the quantity of Chevy trucks demanded increases from 112,000 to 144,000. What is the cross elasticity of demand between Ford and Chevy trucks?
What will be an ideal response?
Which of the following is most important if you want to achieve high earnings?
What will be an ideal response?
A charity that used to arrange matching charitable contributions, but no longer does, is likely to ________ the free-rider problem and lead to a ________ level of contribution to the public good.
A. reduce; smaller B. reduce; larger C. increase; smaller D. increase; larger
An unexpected decrease in aggregate demand
A. causes the price level to rise and the unemployment rate to rise. B. causes the price level to fall and the unemployment rate to rise. C. causes the price level to rise and the unemployment rate to fall. D. causes the price level to fall and the unemployment rate to fall.