Firms 1 and 2 compete in a Cournot duopoly. If firm 2 adopts a strategy that raises firm 1's marginal cost:
A. firm 1's reaction function will shift down.
B. firm 2's reaction function will shift down.
C. firm 1's reaction function will shift up.
D. firm 2's reaction function will shift up.
Answer: A
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The above table gives some of the costs of the Delicious Pie Company. What is the average total cost of producing 200 pies?
A) $5.00 B) $650 C) $6.50 D) More information is needed to calculate the average total cost.
When aggregate expenditure = GDP
A) net exports equal zero. B) macroeconomic equilibrium occurs. C) saving equals zero. D) the federal budget is balanced.
Refer to the above figure. Which panel does not represent a possible short-run situation for a monopolistically competitive firm?
A) Panel A B) Panel B C) Panel C D) Panel D
During one winter quarter at Frozen U., snow falls every Friday night. Students assume that, on their campus, Fridays cause snow. This hypothesis
a. should more properly be considered a theory. b. assumes that correlation implies causation. c. assumes that causation implies correlation. d. reflects the fallacy of composition.