Firms 1 and 2 compete in a Cournot duopoly. If firm 2 adopts a strategy that raises firm 1's marginal cost:
A. firm 2 will lose market share.
B. firm 1 will reduce its output.
C. firm 2 will enjoy lower profits.
D. None of the statements is correct.
Answer: B
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Which of the following factors has led to poor plan performance?
(a) unanticipated changes, such as in terms of trade. (b) corruption of government officials. (c) foreign firms are less subject to the constraints of the plan than domestic ones. (d) all of the above. (e) none of the above.
Why might two presidential candidates appear to have very similar opinions during an election year even if they come from different parties?
a. They aim to please special-interest groups. b. They are logrolling. c. They try to appeal to the median voter. d. Republicans and Democrats usually agree on most issues. e. They don't wish to appear rationally ignorant.
The supply curve for milk
a. shifts when the price of milk changes because the price of milk is measured on the vertical axis of the graph. b. does not shift when the price of milk changes because the price of milk is measured on the vertical axis of the graph. c. does not shift when the price of milk changes because the price of milk is measured on the horizontal axis of the graph. d. shifts when the price of milk changes because the quantity supplied of milk is measured on the horizontal axis of the graph.
Andre decides that he would pay as much as $3,000 for a new laptop computer. He buys the computer and realizes consumer surplus of $700 . How much did Andre pay for his computer?
a. $700 b. $2,300 c. $3,000 d. $3,700