In a Bertrand model, if one firm has a dominant strategy, its best-response function
A) does not exist.
B) is identical to its rival.
C) is a constant.
D) is to respond to its rival's price increase with a price decrease.
C
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The upward slope of the MP curve indicates that
A) the central bank lowers real interest rates when inflation rises. B) the central bank raises real interest rates when inflation falls. C) the central bank raises nominal interest rates when inflation rises. D) the central bank raises real interest rates when inflation rises.
Which of the following is (are) linked to (an) adverse supply shock(s)?
A) the terrorist attacks of 2001 B) collective bargaining that followed the termination of U.S. wage and price controls in 1973 C) the corporate scandals of 2002 D) all of the above E) none of the above
Were Social Security benefits to cease, almost half of all older Americans would fall into poverty
Indicate whether the statement is true or false
Government regulators can achieve efficiency for a natural monopoly by setting a price ceiling equal to the intersection of the demand curve and the:
a. marginal revenue curve. b. average cost curve. c. marginal cost curve. d. average fixed cost curve.