How have the recent increases in the price of gasoline affected the market for hybrid cars?
A. The demand has increased, increasing the equilibrium price and quantity of hybrid cars.
B. The supply has increased, decreasing the equilibrium price and increasing the equilibrium quantity of hybrid cars.
C. The demand has increased, decreasing the equilibrium price and increasing the equilibrium quantity of hybrid cars.
D. The demand and supply of hybrid cars have both increased in response to changing gas prices, so the equilibrium quantity has definitely decreased, but the effect on price cannot be determined without more information.
A. The demand has increased, increasing the equilibrium price and quantity of hybrid cars.
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What is a Nash equilibrium? Is this equilibrium the best outcome for the players? Give an example
What will be an ideal response?
A firm in monopolistic competition maximizes its profit by ________
A. differentiating its good and producing the quantity at which price equals marginal revenue B. producing the quantity at which marginal revenue equals marginal cost and then adding a markup C. raising its price and producing so that it always has excess capacity D. producing the quantity at which marginal cost equals marginal reve-nue and charging the highest price at which it can sell that quantity
A monopolist will maximize profits by producing a quantity specified by setting marginal revenue equal to marginal cost.
Answer the following statement true (T) or false (F)
When an oligopoly market reaches a Nash equilibrium,
a. the market price will be different for each firm. b. the firms will not have behaved as profit maximizers. c. a firm will have chosen its best strategy, given the strategies chosen by other firms in the market. d. a firm will not take into account the strategies of competing firms.