Refer to Scenario 13.15. If the firms price simultaneously, equilibrium would be
A) an $80 price for Simple and a $70 price for Boring.
B) an $80 price for Simple and a $25 price for Boring.
C) a $35 price for Simple and a $70 price for Boring.
D) a $35 price for Simple and a $25 price for Boring.
E) a mixed strategy equilibrium.
B
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Even though monopolistic competition results in inefficiency, it does have which of the following benefits for society?
A) Firms earn zero economic profit in the long run. B) Firms can earn an economic profit in the short run. C) Product variety benefits consumers. D) Marginal cost equals price in the long run. E) The premise of the question is incorrect because nothing in monopolistic competition justifies any economic inefficiency.
In the 1990s, video recordings were made primarily on tapes. However, in the 2000s DVDs became increasingly popular, leading to a sharp decline in video tapes
As a result, many people who manufactured tapes lost their jobs and didn't have the skills necessary to work making DVDs. This occurrence is best consider an example of A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) underemployment.
Which of the following will improve your supplier contracting bargaining position
a. You have a policy of always excluding at least one potential competing supplier b. You have a policy of increasing product options by never excluding a potential supplier c. Two of your suppliers merge d. Your final product that includes this component becomes more profitable
When the aggregate expenditures of a nation exceed its output, _____
a. the nation's inventories fall b. the government purchases of goods and services fall c. the nation's firms decide to decrease their level of production d. there will be an inflationary increase in the price level