Which one of the following statements is a common criticism of the original Bertrand duopoly model?
A) Firms never choose optimal prices as strategic variables.
B) Firms would more naturally choose quantities if goods are homogenous.
C) The assumption that market share is split evenly between the firms is unrealistic.
D) A and B are correct.
E) B and C are correct.
E
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Give an example where individuals "vote with their feet" in choosing among bundles of public goods and tax rates
What will be an ideal response?
In general, a plaintiff and defendant should be expected to settle if the expected ________ from the litigation is ________ the expected ________.
A) gain; greater than; loss B) loss; greater than; gain C) loss; less than; gain D) loss; exactly one half of; gain
Explain Gresham's Law
The classic example of a detrimental externality is
a. education. b. pollution. c. discovery of an AIDS vaccine. d. Mrs. Lewis' prize-winning rose garden.