In the Cournot model,
A. each firm takes the quantities produced by its rivals as given.
B. one firm plays a leadership role and its rivals merely follow.
C. prices are higher and quantities are slightly less than we would see if the firms colluded.
D. each firm takes the prices charged by its rivals as given.
Answer: A
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Which of the following ideas apply to the neoclassical growth theory?
I. The rate of technological change influences the rate of economic growth. II. Technological change promotes saving and investment. III. Convergence of economic growth rates across countries A) I only B) III only C) I and II D) I, II and III
Cowboy Hat Markets Cody's Cowboy Hat Emporium has two stores Fort Worth, TX. One in the Stockyards area that caters to tourists and another a mile further north that caters to ranch hands. Why doesn't Cody sell to both customer types out of one store?
Answer the following statement true (T) or false (F)
1) An economic model is an ideal or utopian type of economy that society should strive to obtain through economic policy. 2) Because economic generalizations are simplifications from reality, they are impractical and useless. 3) If economic theories are solidly based on relevant facts, then appropriate economic policy becomes obvious and uncontroversial. 4) Normative statements are expressions of facts.
A perfectly price elastic demand curve will be a ________ line.
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