Suppose that in a perfectly competitive industry the equilibrium industry quantity is 10,000 units. Suppose that the monopoly output is 5,000 . For a 2-firm Cournot Oligopoly (N =2) known as a duopoly, what is a likely Cournot QUANTITY for the industry?
a. 3,000 units
b. 5,000 units
c. 6,667 units
d. 10,000 units
e. 15,000 units
c
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The figure above shows the market for transportation services, which produces an external cost due to the air pollution that is created
If the market for transportation services is competitive and unregulated, the equilibrium quantity is ________ and the equilibrium price is ________. A) 120; $14 B) 120; $8 C) 80; $12 D) 80; $6
The ________ curves are both vertical
A) long-run aggregate supply and long-run Phillips B) aggregate demand and short-run Phillips C) short-run aggregate supply and short-run Phillips D) long-run aggregate supply and short-run Phillips
For a country that is considering the adoption of either a tariff or an import quota on a particular good, an important difference is that
a. an import quota has no effect on consumer surplus, while a tariff decreases consumer surplus. b. an import quota has no effect on producer surplus, while a tariff decreases producer surplus. c. a tariff raises total surplus, while an import quota does not. d. a tariff raises revenue for that country's government, while an import quota does not.
In the above graph, the shift from I to II was due to
A. an increase in the price of labor. B. a decrease in the price of capital. C. a decrease in the price of labor. D. an increase in the price of capital. E. an increase in total cost.