Both firms in a Cournot duopoly would enjoy lower profits if:
A. each firm simultaneously increased output above the Nash equilibrium level.
B. one firm reduced output below the Cournot Nash equilibrium level, while the other firm continued to produce its Cournot Nash equilibrium output.
C. the firms simultaneously reduced output below the Nash equilibrium level.
D. None of the answers is correct.
Answer: A
You might also like to view...
About one out of every _______ whites is poor.
Fill in the blank(s) with the appropriate word(s).
Figure 10-3
In Figure 10-3, the perfectly competitive firm is realizing a
a.
loss equal to ABCE.
b.
profit equal to ABCE.
c.
profit equal to ABDF.
d.
loss equal to ABDF.
The Sherman Antitrust Act
a. outlawed restraints and monopolies that hindered trade. b. nationalized the railroads. c. established the FDA. d. applied only to banking.
Asset price inflation occurs when the prices of assets rise.
Answer the following statement true (T) or false (F)