The oligopoly model in which each firm assumes that rivals will continue to produce at their current output levels is called the:
A. Chamberlin model
B. Bertrand model
C. Cournot model
D. Stackelberg model
Answer: C
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If the dollar appreciates, it can be said that: a. foreigners respect the United States more
b. other currencies depreciate. c. it increases in value within the United States. d. other currencies also appreciate.
Suppose that a firm produces both steel and electricity. It is cheaper for this firm to produce both goods than it would be if they were produced by two separate firms. Further, as this firm increases its production levels of both products, the average cost of producing steel rises, while the average cost of producing electricity remains constant. This firm experiences:
A. economies of scope, diseconomies of scale in the production of steel and constant returns to scale in the production of electricity. B. economies of scope, economies of scale in the production of steel and constant returns to scale in the production of electricity. C. diseconomies of scope, economies of scale in the production of steel and constant returns to scale in the production of electricity. D. diseconomies of scope, diseconomies of scale in the production of steel and increasing returns to scale in the production of electricity.
QN=70 (17785) In the economy of Wrexington in 2008, nominal GDP was $20 billion and the GDP deflator ratio was 500. What was Wrexington's real GDP in 2008?
a. $2.5 million b. $10 million c. $40 million d. $100 million
When there is a reserve requirement, banks
a. must hold exactly the required quantity of reserves. b. may hold more than, but not less than, the required quantity of reserves. c. may hold less than, but not more than, the required quantity of reserves. d. must seek the Fed's permission whenever they wish to expand or contract their loans to customers.