Firm A has a higher marginal cost than firm B. They compete in a homogeneous product Cournot duopoly. Which of the following results will NOT occur?
A. Revenue of firm A < Revenue of firm B
B. PriceA < PriceB
C. QA < QB
D. ProfitA < ProfitB
Answer: B
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When I purchase a corporate ________, I am lending the corporation funds for a specific time. When I purchase a corporation's ________, I become an owner in the corporation
A) bond; stock B) stock; bond C) stock; debt security D) bond; debt security
If the MPC is 0.6 and the tax rate is 20%, a $200 decrease in autonomous net exports will decrease equilibrium income by
A) $384. B) $416. C) $478. D) $1,666.
Games with a negative-negative outcome:
A. must have a noncooperative equilibrium. B. are not necessarily the best outcome for the players involved. C. result from players acting in their own self-interest. D. All of these statements are true.
Most economists believe that the poor economic performance of countries located in tropical areas is primarily the result of
a. the hot climate that saps the energy of people in tropical countries. b. the poor institutional quality in most tropical countries. c. the lack of natural resources in most tropical countries. d. the failure of rich countries to provide foreign aid to tropical countries.