The following question relates to an oligopoly market where the industry demand curve is P = 100 - Q. Compare the models analyzed here with reference to the consumer and economic efficiency.
What will be an ideal response?
The Bertrand model produces the most at the lowest price. Price is equal to marginal cost so the output is socially efficient. The shared monopoly is the least desirable because it charges the most and produces the least and price is above marginal cost by the greatest amount. The Stackelberg outperforms the Cournot model for second place on the list. It has the second highest output and the second lowest price. The Cournot model is in third place based on the price and quantity efficiency criteria.
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What problems are implicit in the concept of utility?
What will be an ideal response?
The result that different auction styles in which the good goes to the winner with the highest valuation of the good generate the same amount of revenue is called
A) Revenue Equivalence Theorem. B) Marginal Revenue Theory. C) Auction Revenue Theory. D) First Bid Revenue Theorem.
Which of the following occurs when a consumer equilibrium has been achieved? a. The marginal utility of the last unit purchased is identical for all goods
b. The price of the last unit purchased is identical for all goods. c. An equal amount of income is spent on all goods purchased. d. The ratio of the marginal utility of each good divided by its price is equal across all goods consumed.
Consumer equilibrium exists when the marginal utility per dollar of expenditure is the same for all goods and services
a. True b. False Indicate whether the statement is true or false