Which of the following market models results in the highest level of consumer surplus, assuming a fixed number of firms with identical costs and a given demand curve?
A) Cournot
B) Stackelberg
C) Monopoly
D) Cartel
B
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A major principle of economics is that people respond to incentives
Indicate whether the statement is true or false
Which of the following are illegal under the antitrust laws of the United States?
a. charging prices that exceed average total costs b. charging some consumers different prices than others c. mergers that unnecessarily create excessively large firms d. collusive behavior or other actions designed to create a monopoly or cartel
Refer to the graph shown. A purchase of shekels by the Israeli government would shift the:
A. supply curve to the left and raise the price of shekels. B. supply curve to the right and reduce the price of shekels. C. demand curve to the right and raise the price of shekels. D. demand curve to the left and reduce the price of shekels.
Suppose that the percentage change in demand is 10%, the price elasticity of demand is 2, and the price elasticity of supply is 2. The equilibrium price will:
A. decrease by 2.5 percent. B. increase by 40 percent. C. increase by 2.5 percent. D. decrease by 40 percent.