In a Nash-Cournot equilibrium where firms produce identical products with unequal costs,
A) the firm with lower costs charges a higher price.
B) the firm with higher costs charges a higher price.
C) the firm with lower costs produces more.
D) the firm with higher costs produces more.
C
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
The market supply curve shows the
A) minimum price suppliers must receive in order to produce another unit of the good. B) maximum price suppliers must receive in order to produce another unit of the good. C) amount of producer surplus suppliers receive. D) profit that suppliers receive from producing another unit of the good.
Consider a simple linear regression model, wage = 
+
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Suppose that the price of macaroni drops. Quantity supplied will ________ and producer surplus will ________.
A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decrease