The following question relates to an oligopoly market where the industry demand curve is P = 100 - Q. What price will the two Stackelberg firms charge?
What will be an ideal response?
Firm 1 will price at 25 [25 = 50 - .5(50)]. Firm 2 will price at 25, since it follows the leader.
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An increase in the unemployment rate which is accompanied by a decrease in the inflation rate is represented by a ________ the Phillips curve
A) movement down B) movement up C) upward shift of D) downward shift of
At the equilibrium price for gasoline:
a. everyone with the desire and the income to buy gasoline at that price can do so. b. surpluses are inevitable c. quantity demanded exceeds the quantity supplied. d. none of the above
A product that is produced in 2015 and not sold until 2016 will be counted in the GDP for
A. both 2015 and 2016. B. neither 2015 nor 2016. C. 2015 D. 2016
Harry owns a barber shop and charges $6 per haircut. By hiring one barber at $10 per hour, the shop can provide 24 haircuts per 8-hour day. By hiring a second barber at the same wage rate, the shop can now provide a total of 42 haircuts per day. The MP of the second barber is
A. 42 haircuts. B. $240. C. 18 haircuts. D. $108.