In a Stackelberg game, a monopolist could deter entry from a potential rival by
A) telling the potential rival not to enter.
B) strategically moving first.
C) moving to a Bertrand model.
D) None of the above.
B
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As long as TVC < TR, a firm will have a positive level of output in the short run.
Answer the following statement true (T) or false (F)
If top managers make good decisions, the firm's profits will be ________, and the firms assets will be ________
A) equal to its revenues; small relative to its liabilities. B) high; large relative to its liabilities. C) high; small relative to its liabilities. D) low; large relative to its liabilities
The more a firm invests in a new production technology, the lower its marginal costs. Which of the following scenarios involving this incumbent firm and a potential entrant makes the least economic sense?
a. The incumbent overinvests to deter entry when this investment is observable to the entrant. b. The incumbent overinvests to deter entry when this investment is unobservable to the entrant. c. The incumbent underinvests to accommodate entry when this investment is observable and they compete in prices. d. The incumbent overinvests to accommodate entry when this investment is observable and they compete in quantities.
Legislation that provides a price support for dairy farmers is an example of
a. public-interest legislation b. competing-interest legislation c. a positive-sum game d. special-interest legislation e. concentrated-costs legislation