If one firm in a duopoly increases its production by one unit beyond the monopoly output, that firm's profit ________, the other firm's profit ________, and the total profit of the duopoly ________
A) increases; increases; increases
B) does not change; does not change; does not change
C) increases; decreases; does not change
D) increases; does not change; increases
E) increases; decreases; decreases
E
You might also like to view...
Which of the following will most likely occur during the expansionary phase of a business cycle?
a. Real GDP rises, and unemployment falls. b. Real GDP declines, and inflation rises. c. Interest rates rise, and the number of business failures rise. d. Inflation rises, and employment falls.
When production reflects consumer preferences, ________ occurs
A) allocative efficiency B) productive efficiency C) equity D) efficient central planning
The two most important actors of the economy are:
A. firms and -capital. B. exports and imports. C. households and firms. D. land and capital.
Any consequentialist approach to normative economics that uses standard indifference maps as social indifference maps (over utilities or consumption) will choose efficient outcomes in the first-best case.
Answer the following statement true (T) or false (F)