Compare the equilibrium output in a duopoly to the monopoly output
The duopoly output will be higher than the monopoly output because the self interests of each duopolist will drive each firm to cheat by producing slightly more output in an effort to increase individual profits.
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"According to the neoclassical growth theory, national incentives to save, invest, accumulate human capital, and develop new technology influence the country's growth rate of real GDP." Comment on the accuracy of the previous statement
What will be an ideal response?
Tax laws affect
A) economic efficiency but not equity. B) consumption and production, not efficiency and equity. C) both efficiency and equity. D) equity but not economic efficiency.
The amount of output that a firm decides to sell has no effect on the market price in a competitive industry because
A) the market price is determined (through regulation) by the government B) the firm supplies a different good than its rivals C) the firm's output is a small fraction of the entire industry's output D) the short run market price is determined solely by the firm's technology E) the demand curve for the industry's output is downward sloping
Specialization according to comparative advantage, followed by trade, allows everyone to acquire more of the goods they want
a. True b. False Indicate whether the statement is true or false