Firms 1 and 2 compete in a Cournot duopoly. If firm 2 adopts a strategy that raises firm 1's marginal cost:
A. firm 2 will lose market share.
B. firm 1 will enjoy higher profits.
C. firm 1 will increase its output.
D. None of the statements is correct.
Answer: D
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Perfectly competitive markets are characterized by pronounced barriers to entry
a. True b. False Indicate whether the statement is true or false
In the prisoners’ dilemma game, each player
A) has only one possible strategy. B) can choose from two strategies. C) can choose from three strategies. D) can choose from four strategies.
When the demand curve shifts to the right and supply doesn't change:
A. supply will rise. B. equilibrium quantity will rise. C. equilibrium price will fall. D. quantity demanded will rise.
This graph shows what causes
A. cost-push inflation.
B. demand-pull inflation.
C. neither cost-push nor demand-pull inflation.