In choosing the optimal output, the monopolist had only to consider its own costs and the demand curve that it faced. How do things change under duopoly and what does the Cournot model argue about how firms will behave?
What will be an ideal response?
The duopolist has another factor to consider: how much output will its rival produce? The more the rival produces, the less market is left for the other firm in the duopoly. In the Cournot model, each firm looks at the market demand, subtracts what it expects the rival firm to produce, and chooses its output to maximize its profits based on the market that is left.
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Rent seeking is one reason why countries choose to
A) restrict trade. B) export and import the same goods. C) work for freer trade. D) follow the theory of comparative advantage.
__________ are never borrower-spenders
A) Governmental bodies B) Business firms C) Households D) All of the above can be borrower-spenders.
Describe how a firm that sells only one brand of bleach may be able to increase its profit if it re-labels some of its bleach
What will be an ideal response?
According to Maslow's Hierarchy of Needs, physiological is the most basic. What is the need that comes next?
a. Esteem b. Self-Actualization c. Belongingness and Love d. Safety