In the Cournot model, when a new firm begins production it assumes its demand curve is
A. one-half of the competing firm's demand curve.
B. the market demand less the amount the other firm is selling.
C. the market demand plus the amount the other firm is selling.
D. the same as the competing firm's demand curve.
Answer: B
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Hogrocket, which developed the Tiny Invaders game for the iPhone, found that to maintain sales in a profitable competitive market, the price of a product
A) will usually rise. B) will usually remain stable. C) will eventually fall to zero. D) will usually fall.
A sealed-bid first-price auction ________ common in business settings, and participants in this kind of auction ________ observe other participants' bids
A) is; do B) is not; do not C) is; do not D) is not; do
Traditional classical economists believe that: a. wage rates are perfectly flexible. b. people do not have perfect information about the economy. c. prices are fixed for long periods of time. d. the price of resources, technology, and expectations cannot influence the equilibriumlevel of real GDP
e. changes in aggregate demand change only the real GDP.
Refer to the information provided in Figure 4.4 below to answer the question(s) that follow.
Figure 4.4Refer to Figure 4.4. Assume that initially there is free trade. Tariff revenue of $50 million per day will be generated if the United States imposes a ________ tariff per barrel on imported oil.
A. $25 B. $50 C. $100 D. $150