Which of the duopoly models has the lowest overall combined profit level?

A. The Bertrand model
B. The shared monopoly model
C. The Cournot model
D. The Stackelberg Leader-Follower model


Answer: A

Economics

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In the figure above, consumer surplus at the price that maximizes the profit for an unregulated, single-price monopolist is the area of

A) rectangle 0heb. B) triangle abe. C) triangle eig. D) rectangle 0hgd.

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If people have more time to adjust to a price change,

a. demand becomes more elastic, and supply becomes less elastic b. demand becomes less elastic, and supply becomes more elastic c. both supply and demand become less elastic d. both supply and demand become more elastic e. elasticity of both demand and supply tends toward unity

Economics

If we observe a great deal of advertising of men's shaving products, we can infer that

a. the market for those products is perfectly competitive. b. it costs firms very little to produce those products. c. those products are highly differentiated. d. firms are irrational in their decisions to advertise.

Economics

The income consumption curve

A. is always a straight line. B. is the same as the Engle curve. C. always goes through the origin. D. has income on the vertical axis.

Economics