Assuming a homogeneous product, the Bertrand equilibrium price is
A) independent of the number of firms.
B) independent of the firm's marginal costs.
C) equal to the Cournot equilibrium price.
D) equal to the monopoly price.
A
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Which area in the above figure equals the consumer surplus under perfect price discrimination?
A) A + B + C + D + E + F + G + H B) A + B + C + D + E C) A + B D) There is no consumer surplus.
The excludability versus nonexcludability issue is
A. relevant to the issue of market failure. B. not relevant to the issue of market failure. C. relevant to the free-rider problem. D. a and c E. b and c
As a result of the case of Dartmouth College v Woodward (1819), the Federal Trade Commission was formed years later in 1914
Indicate whether the statement is true or false
When property rights are poorly defined,
a. positive or negative externalities may result b. the market cannot generate an equilibrium price c. the market price becomes highly unstable d. the market must be relied upon to generate efficient allocation of resources e. no externalities can exist