In the Cournot model, if a firm's marginal cost increases, its best-response function will
A) shift inward.
B) not change.
C) shift outward.
D) The shift is ambiguous.
A
You might also like to view...
The broadly-defined money supply in the U.S., called M2, differs from M1 primarily in its inclusion of
A) bonds of all sorts held by the public. B) outstanding charge-account balances. C) savings deposits in financial institutions. D) Treasury bills held by the public. E) credit cards.
Which of the following statements is correct?
a. The demand curve facing a competitive firm is horizontal, as is the demand curve facing a monopolist. b. The demand curve facing a competitive firm is downward sloping, whereas the demand curve facing a monopolist is horizontal. c. The demand curve facing a competitive firm is horizontal, whereas the demand curve facing a monopolist is downward sloping. d. The demand curve facing a competitive firm is downward sloping, as is the demand curve facing a monopolist.
Which of the following would cause the short-run aggregate supply curve to shift to the left?
A) an increase in the price level B) an increase in inflation expectations C) a technological advance D) a decrease in interest rates
In a case where there are two possible work activities and two workers, which of the following is true regarding to comparative advantage?
a. One person can have a comparative advantage in both activities. b. Both people can have a comparative advantage in both activities. c. No one can have a comparative advantage in either activity. d. Each person must have a comparative advantage in one activity, but not both.