Two identical firms compete as a Cournot duopoly. The demand they face is P = 100 ? 2Q. The cost function for each firm is C(Q) = 4Q. Each firm earns equilibrium profits of:
A. $4,096.
B. $1,024.
C. $2,048.
D. $512.
Answer: D
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Social Security benefits are determined by a complex formula that is rarely discussed publicly but the information is available on the Social Security Administration's website
A recipient's lifetime earnings is indexed and averaged over the highest 35 years of earnings to obtain an Average Monthly Indexed Earnings amount (AIME). If Social Security benefits begin at age 65 to 67, the monthly benefit in 2007 is 90% of the first $680 of AIME, 32% of AIME above $680 and less than $4100, and only 15% of AIME in excess of $4100 . For example, an individual whose indexed earnings were at the poverty level of $10,200/year would receive 78.4% of that in benefits, while an average earner of $37,000/year would receive only 44.8% of that in benefits, and individual's with above average earnings receive an even lower proportion in benefits. Using this information how could one argue that the payroll tax is not regressive?
Expectations are taken to be rational in ________
A) traditional Keynesian and new Keynesian theory B) new Keynesian and real business cycle theory C) real business cycle and traditional Keynesian theory D) traditional Keynesian, new Keynesian and real business cycle theory
Figure 15.3 depicts a one-mile stretch of beach with 100 swimmers distributed evenly along the beach. There are two ice cream vendors - 1 and 2 - on the beach selling an identical product. Assume that each swimmer buys only one ice cream cone and that they prefer to buy ice cream from the nearer vendor. If vendor 1 is at B while vendor 2 is at D, vendor 1 has an incentive to move:
A. to the left of its current location. B. toward the median location. C. to the right of vendor 2's location. D. None of these
Which statement is correct?
A. The operation of a market system eventually results in an equal distribution of income. B. Freedom of choice and enterprise are essential elements of the market system. C. Producers are "kings" in a market economy because they determine what is produced. D. The market system is efficient at allocation of resources but not in getting consumer goods to their most valued uses.