Assuming a homogeneous product, the Bertrand duopoly equilibrium price is
A) the same as the Cournot equilibrium price.
B) less than the Cournot equilibrium price.
C) greater than the Cournot equilibrium price.
D) equal to the monopoly price.
B
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Suppose Campus Books, a profit-maximizing firm, is the only supplier of the textbook for a given class. The marginal cost of supplying each book is constant and equal to $10, and Campus Books has no fixed costs. The table below shows the reservation prices of the eight students enrolled in the class.StudentReservation Price($/Book)Q60R54S48T42U36V30W30X30 What is the socially optimal number of books?
A. 6 B. 7 C. 5 D. 8
Rhonda sells a house she has owned for 15 years and starts living in a rented apartment. To make it more marketable, she buys carpeting that she has professionally installed and buys wallpaper that her daughter hangs. Which items would be included in this year's gross domestic product (GDP)?
a. The sale price of the house b. The cost of transporting all her furnitures to the new apartment c. The opportunity cost of Rhonda's daughter's time d. The opportunity cost of Rhonda's time e. The purchase price for carpet and wallpaper, and the installation fee for the carpet
How will an increase in the efficiency of the payments mechanism effect velocity?
a. It will decrease. b. It will increase. c. It will remain constant. d. Velocity is unrelated to payments.
Which of the following is consistent with the equation of exchange?
A) Total spending must equal the total sales revenues of business firms. B) The money supply multiplied by velocity must equal GDP. C) The money supply multiplied by velocity must equal the price level times Real GDP. D) a and b E) a, b and c