The profits of the leader in a Stackelberg duopoly:
A. are greater than those of the follower.
B. are less than those of a Sweezy oligopolist.
C. equal those of the follower.
D. are less than those of the follower.
Answer: D
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An increase in interest rates will immediately shift
A. aggregate supply to the right. B. aggregate demand to the left. C. aggregate demand to the right. D. aggregate supply to the left.
A 10 percent tax is going to be applied to a $100,000 tax base. What can be said about the revenue collected assuming dynamic tax analysis?
A. The total revenue will be zero. B. The total revenue will be between $0 and $10,000. C. The total revenue will be $10,000. D. There is not enough information to determine what revenues will equal.
Output in a Cournot duopoly is at a level between that in perfect competition and monopolistic competition.
Answer the following statement true (T) or false (F)
Use the following data to answer the next question.OutputATC-AATC-BATC-C10$6$13$442059353046274054205073146010411701458801976902510510032167The letters A, B, and C designate three successively larger plant sizes. In the long run, the firm should use plant size "C" for the production of
A. all possible levels of output. B. 80 to 100 units of output. C. 10 to 30 units of output. D. 40 to 70 units of output.