In the Cournot model, if the products are differentiated
A) this reduces the pressure of one firm's decisions on the other.
B) this increases the pressure of one firm's decisions on the other.
C) there is no difference between this model and one with homogeneous goods.
D) marginal costs are necessarily different.
A
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According to the policy irrelevance proposition
A) monetary policy can effectively reduce the rate of unemployment in the short run. B) workers are not rational in the long run. C) expansionary monetary policy will only lead to a higher rate of inflation in the long run. D) the Phillips curve slopes upward, not downward as traditionally assumed.
In the long run in monopolistic competition, the demand curve facing the typical firm
a. is perfectly elastic b. slopes upward c. is tangent to the firm's average total cost curve d. lies above the firm's average total cost curve e. is the same as the portion of the firm's marginal cost curve above average variable cost
If all consumers satisfy economists' assumptions regarding utility, then
a. they will each choose a consumption bundle that is inside the budget line b. everyone will choose the same consumption bundle c. everyone will have the same budget line d. all consumers will react in the same way to a price change e. each person will choose a consumption bundle on his or her budget line
The most important reason for why some people have higher income than others is ______.
Fill in the blank(s) with the appropriate word(s).