When firm 1 acts as a Stackelberg leader:
A. Firm 2 will earn more than if they compete in a Cournot fashion.
B. Firm 1's profit is less than its profit if they compete in a Cournot fashion.
C. Firm 2 produces the monopoly output.
D. None of the answers is correct.
Answer: D
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Markets tend to
A) exist primarily in towns or cities. B) increase transaction costs. C) reduce transaction costs. D) make exchange more difficult.
In the U.S., health and Medicare account for _____ of all federal spending
a. 29% b. 24% c. 17% d. 6%
An increase in business taxes would tend to:
a. Decrease aggregate demand and decrease aggregate supply b. Increase aggregate demand and increase aggregate supply c. Increase aggregate demand and decrease aggregate supply d. Decrease aggregate demand and increase aggregate supply
Cyclical unemployment happens because
A. businesses make strategic errors. B. of the ups and downs of the business cycle. C. of government intervention. D. inflation rates vary.