In the Cournot model the final level of output is ________ the output that would be produced if the industry was a monopoly, and is ________ the output that would be produced if the industry was perfectly competitive.
A. less than; greater than
B. greater than; less than
C. equal to; less than
D. greater than; equal to
Answer: B
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What will be an ideal response?
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a. True b. False Indicate whether the statement is true or false
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A) MUa/Pa = MUb/Pb B) MUa/Pb = MUb/Pa C) MUa - MUb = Pa/Pb D) MUa × Pa = MUb × Pb