In a competitive market with no externalities,
A) the consumer surplus is equal to zero because of competition.
B) buyers cannot control the price, so the consumer surplus is zero.
C) at the equilibrium price, marginal benefit exceeds marginal cost.
D) at the equilibrium price, marginal benefit equals marginal cost.
E) at the equilibrium price, the total amount of consumer surplus equals the total amount of producer surplus.
D
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If the shopkeeper goes first and quotes a high price, what is the best response of the customer?
a. Accept the high price b. Yell at the store owner c. Walk away from the deal d. Swear off shopping forever
Excludable goods are those goods that a person can be prevented from consuming
a. True b. False Indicate whether the statement is true or false
Refer to the normal-form game of price competition shown below.Firm AFirm B??CD?A0,75,2?B5,10,8Which of the following represents the set of possible pure strategy Nash equilibria?
A. {C, D} B. {A, B} C. {A, C} D. {(A, C), (A, D), (B, C), (B, D)}
An increase in demand will lead to a decrease in supply in the long run.
Answer the following statement true (T) or false (F)