Suppose Cournot duopolists firms (A and B) face the same market demand curve, and initially have identical costs. Firm A figures out a way of reducing its marginal cost. At the new Nash-Cournot equilibrium,
A) firm A's price falls.
B) firm A's output expands and firm B's output contracts.
C) firm B's profits expand.
D) the price charged by both firms increases.
B
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Define behavioral economics
What will be an ideal response?
Which of the following is not included in GDP?
a. the fees for legal services rendered by your attorney b. the replacement of brake pads on your six-year-old vehicle c. cash income paid to a day laborer that is not reported to the tax authorities d. the payments for a chiropractor's services
If U.S. consumers decrease their demand for cell phones from Finland, then other things the same Finland's
a. exports and net exports fall. b. exports fall and net exports rise. c. imports and net exports fall. d. imports fall and net exports rise.
According to the quantity theory of money, an increase in the quantity of money will increase the price level
a. and decrease real GDP and increase the velocity of circulation. b. and increase real GDP but decrease the velocity of circulation. c. but have no effect on real GDP or the velocity of circulation. d. and increase real GDP and the velocity of circulation. e. but have no effect on real GDP and will decrease the velocity of circulation.