Firms A and B are identical, produce identical products, and are the only firms in a market. Firm A's output is higher than Firm B's. This means that Firm B is the
A) Cartel leader.
B) Stackelberg leader.
C) Stackelberg follower.
D) Cournot leader.
C
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The supply curve of dollars in the foreign exchange market is:
A) downward sloping. B) upward sloping. C) horizontal. D) vertical.
In a firm's planning horizon, the long run refers to
a. a period of one year or more b. the term to which the current board of directors has been elected c. the period during which all of the firm's inputs can be varied d. the period during which at least one of the firm's inputs is fixed e. the period during which the level of available technology is fixed
Potential output depends on all of the following except:
A. the size of the capital stock. B. the number of firms in the economy. C. the number of people who can work. D. technology.
In the above figure, suppose that the government sets a limit that may be produced of 10 units of output and the price rises to $4. In comparison to a competitive market the producer surplus would rise by
A) $0. B) $5. C) $15. D) $20.