In a Bertrand model with identical products
A) price is the same as in a competitive market equilibrium.
B) price and quantity are the same as in a monopoly.
C) price and quantity are the same as in a duopoly.
D) None of the above.
A
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Describe the real option approach to risk-adjusted capital budgeting
What will be an ideal response?
An increase in the price of a substitute shifts the demand curve to the _______
a. right b. left c. it does not change the demand curve d. none of the above
A price searcher confronts a downward sloping demand curve because
a. products in the market are differentiated. b. there is no close competitor in the market. c. the market is essentially monopolized. d. the firm gains nothing if it lowers its price.
In the long run, money demand and money supply determine
a. the price level and the real interest rate. b. the price level but not the real interest rate. c. the real interest rate but not the price level. d. neither the price level nor the real interest rate.