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 enjoy lower profits.
B. firm 1 will increase its output.
C. firm 2 will gain market share.
D. All of the statements associated with this question are correct.
Answer: C
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Ernie's Earmuffs produces 200 earmuffs per year at a total cost of $2,000 and $400 of this cost is fixed. What is Ernie's total variable cost?
A) $2,400 B) $2,000 C) $1,600 D) $800
The entry of new firms into a competitive market will
a. increase market supply and increase market prices. b. increase market supply and decrease market prices. c. decrease market supply and increase market prices. d. decrease market supply and decrease market prices.
The Earned Income Tax Credit is available to all taxpayers, regardless of income level.
Answer the following statement true (T) or false (F)
The equation for determining real GDP for year X is:
a. b. x 100 c. - 100 d. x 100