Suppose Cournot duopolist firms operate with each having a cost of 30qi (i = 1,2 ) so that each firm's marginal cost is 30. The inverse market demand curve is P = 120 - Q where Q = q1 + q2
Suppose there were no barriers to entry and firms continued to enter so long as there were positive economic profits. At the Nash-Cournot equilibrium, the price, P, is A) 30.
B) 45.
C) 60.
D) 90.
A
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Which of the following is a CORRECT statement about markets for prohibited goods?
A) Penalizing sellers of an illegal good decreases supply and penalizing buyers decreases demand. B) Penalizing either buyers or sellers of an illegal good decreases the quantity bought. C) Taxing a good at a sufficiently high rate can achieve the same consumption level as prohibition. D) All of the above are correct statements.
If a knowledge worker knows more than has manager it makes
A) sense to have a hierarchy organization. B) sense for the manager to closely monitor the employee. C) sense to promote the employee. D) no sense for the manager to monitor the employee.
If the wage rate drops, an employer will be willing to hire more workers, ceteris paribus.
Answer the following statement true (T) or false (F)
Cartels engage in price fixing in order to:
A. drive out competition. B. retain customers. C. increase profits. D. promote entry.