If an incumbent cannot commit and faces an identical potential entrant with relatively high fixed costs that are below the level where entry is blockaded, the incumbent will
A) produce the Cournot duopolist level of output.
B) produce the Stackelberg leader level of output.
C) set price equal to marginal cost.
D) produce a level of output that is greater than the Stackelberg leader level of output.
D
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The tangent at point A on a curve has a positive slope. Therefore, the curve has a
A. positive slope at all points. B. positive slope at point A. C. negative slope at all points. D. negative slope at point A.
Most economist agree that money changes real GDP in both the short and long run
a. True b. False Indicate whether the statement is true or false
What is the percentage of income received by the lower three quintiles on line K?
If the government decides to change the level of government spending, what happens to the value of the multiplier?
A. It becomes larger. B. It becomes smaller. C. It does not change. D. It is impossible to predict.