Refer to Scenario 12.1. What will be the price in the long run if the industry is a Cournot duopoly?
A) $400
B) $600
C) $800
D) $900
E) Competition will drive the price to zero.
A
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To attract more bidders, and more aggressive bidders, to your common-value auction
a. withhold relevant information about the value of the object b. allow bidders to know how others are bidding c. do not allow potential bidders to examine the object too closely d. do not hold oral auctions
Robert Tadmur exports processed turkey and has an upward sloping supply curve. The supply curve indicates that Robert faces a marginal cost of $0.25 or less per pound for supplying the first few pounds. But every producer in this market sells turkey at the market clearing price of $0.50 per pound. The difference between the actual amount that Robert receives and what he would accept to supply the
market clearing quantity is called a. consumer surplus b. importer surplus c. producer surplus d. trade deficit e. average variable cost
An increase in the interest rate will increase consumption spending
a. True b. False Indicate whether the statement is true or false
Harold purchased farmland a long time ago because he felt the stock market was too risky. Now he is afraid of the risk that someone will get hurt on his land and sue him. Which financial intermediary can Harold use to protect the money he has invested in farmland from being taken in a lawsuit?
a. a mutual fund b. a savings and loan c. a bank d. an insurance company