In the Bertrand model with homogeneous products,
A) the firm that sets the lower price will capture all of the market.
B) the Nash equilibrium is the competitive outcome.
C) both firms set price equal to marginal cost.
D) all of the above
E) the outcome is inconclusive.
D
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Short-run demand for electricity can be quite elastic because consumers can change when they consume electricity
Indicate whether the statement is true or false
The EU Emission Trading Scheme created a market for
A) permits to emit greenhouse gases. B) cigarettes. C) marijuana. D) devices that lower the global temperature.
The growth rates of actual and potential GDP
A. are similar in both the short and long run. B. are similar in the short run but not the long run. C. are similar in the long run but not the short run. D. are different in both the short and long run.
When airplanes take off and land at Logan airport, residents of East Boston complain about the noise. The same planes make the same noise during the trip to Boston from Paris, but there are no ____ for most of the trip because ____.
A. free riders; passengers must pay to board the plane B. third parties; there are no externalities C. externalities; there are no third parties D. complaints; airplanes are insulated