Two perfectly competitive firms, Firm A and Firm B, both face random demand and have the same expected marginal revenue, as illustrated in the figure below. For which firm would a forecast of demand be more valuable?





A) Firm A

B) Firm B

C) The value for each firm is the same because the high demand, low demand, and expected marginal revenue are the same.

D) A forecast is more valuable for Firm A if the demand will be high and more valuable for Firm B if the demand will be low.


A) Firm A

Economics

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A. 2 pies and 48 cupcakes. B. 3 pies and 56 cupcakes C. 6 pies and 10 cupcakes D. 9 pies and 10 cupcakes

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Suppose the Federal Reserve raised the required reserve rate. This would lead to an increase in _____.

a. interest rates b. inflation c. deficits d. aggregate demand

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The demand for a particular good depends on variables such as:

A. consumer income. B. price of substitutes. C. price of complements. D. All of these.

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An electricity company has the opportunity to use natural gas to generate electricity at a cost of $30 per unit in 2 years. The current market rate is 4 percent. The present value of this cost is about:

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