Relative to the case in which two identical firms choose quantities simultaneously in a Cournot model, if one of the two moves first and is observed by the other, how would this affect its output?
a. it would increase its output, more so if it could deter the other from entering the market at all.
b. it would increase its output, but would moderate this increase if it were concerned about entry deterrence.
c. it would decrease its output if it couldn't deter entry and increase it otherwise.
d. it would decrease its output whether or not it wanted to deter entry.
a
You might also like to view...
Given an initial endowment of factor inputs,
A. there are many efficient output levels for the firms. B. a production possibility curve can be determined without knowing the contract curve. C. the midpoint on the production contract curve is the most equitable point. D. there is only one efficient level of outputs.
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.
A secure strategy is a strategy that:
A. randomizes over two or more available actions in order to keep rivals from being able to predict a player's action. B. results in the highest payoff to a player regardless of the opponent's action. C. describes a set of circumstances in which no player can improve her payoff by unilaterally changing her own strategy, given the other players' strategies. D. guarantees the highest payoff given the worst possible scenario.
Globalization has had a positive effect on private sector labor union membership rates.
Answer the following statement true (T) or false (F)