Consider a market consisting of two firms where the inverse demand curve is given by P = 500 − 2(Q1 + Q2).If the Stackelberg leader's and follower's marginal costs are zero,the leader's marginal revenue is:

A) MR(QL, QF) = 125 − QL + 0.5QF. B) MR(QL) = 250 − 2QL. C) MR(QF) = 250 − 2QF. D) MR(QL, QF) = 125 − 0.5QL + QF. A) MR(QL, QF) = 125 − QL + 0.5QF. B) MR(QL) = 250 − 2QL. C) MR(QF) = 250 − 2QF. D) MR(QL, QF) = 125 − 0.5QL + QF.

The inverse demand in a Cournot duopoly is P = a − b(Q1 + Q2),and costs are C1(Q1)= c1Q1 and C2(Q2)= c2Q2.The government has imposed a per-unit tax of $t on each unit sold by each firm.The tax revenue is:

A) t times the total output of the two firms should there be no sales tax. B) less than t times the total output of the two firms should there be no sales tax. C) greater than t times the total output of the two firms should there be no sales tax. D) None of the preceding answers is correct. A) t times the total output of the two firms should there be no sales tax. B) less than t times the total output of the two firms should there be no sales tax. C) greater than t times the total output of the two firms should there be no sales tax. D) None of the preceding answers is correct.

Consider two firms competing to sell a homogeneous product by setting price.The inverse demand curve is given by P = 15 − Q.Firm 1 has MC1(Q1)= 1 and firm 2 has MC2(Q2)= 1.05.Based on this information,we can conclude that the market price will be:

A) $1 and each firm will produce 7 units. B) $1.05 and each firm will produce 6.975 units. C) $1.04 and firm 1 will produce 13.96 units and firm 2 will produce 0 units. D) $1 and firm 1 will produce 14 units and firm 2 will produce 0 units. A) $1 and each firm will produce 7 units. B) $1.05 and each firm will produce 6.975 units. C) $1.04 and firm 1 will produce 13.96 units and firm 2 will produce 0 units. D) $1 and firm 1 will produce 14 units and firm 2 will produce 0 units.

Exam 9: Basic Oligopoly Models

Consider a market consisting of two firms where the inverse demand curve is given by P = 500 − 2Q₁ − 2Q₂.Each firm has a marginal cost of $50.Based on this information,we can conclude that aggregate profits in the different equilibrium oligopoly models will follow which of the following orderings?

(Multiple Choice)

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Question 21

Consider a market consisting of two firms where the inverse demand curve is given by P = 500 − 2Q₁ − 2Q₂.Each firm has a marginal cost of $50.Based on this information,we can conclude that equilibrium price in the different oligopoly models will follow which of the following orderings?

(Multiple Choice)

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Question 22

Consider a market consisting of two firms where the inverse demand curve is given by P = 500 − 2(Q₁ + Q₂).If the Stackelberg leader's and follower's marginal costs are zero,the leader's marginal revenue is:

(Multiple Choice)

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Question 23

The market for widgets consists of two firms that produce identical products.Competition in the market is such that each of the firms independently produces a quantity of output,and these quantities are then sold in the market at a price that is determined by the total amount produced by the two firms.Firm 2 is known to have a cost advantage over firm 1.A recent study found that the (inverse)market demand curve faced by the two firms is P = 280 - 2(Q₁ + Q₂),and costs are C₁(Q₁)= 3Q₁ and C₂(Q₂)= 2Q₂. a.Determine the marginal revenue for each firm. b.Determine the reaction function for each firm. c.How much output will each firm produce in equilibrium? d.What are the equilibrium profits for each firm?

(Essay)

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Question 24

The inverse demand in a Cournot duopoly is P = a − b(Q₁ + Q₂),and costs are C₁(Q₁)= c₁Q₁ and C₂(Q₂)= c₂Q₂.The government has imposed a per-unit tax of $t on each unit sold by each firm.The tax revenue is:

(Multiple Choice)

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Question 25

An increase in firm 1's marginal cost will cause:

(Multiple Choice)

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Question 26

"An oligopoly is an oligopoly.Firms behave the same no matter what type of oligopoly it is." This statement is:

(Multiple Choice)

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Question 27

Profits are higher as isoprofit curves move closer to the:

(Multiple Choice)

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Question 28

Consider two firms competing to sell a homogeneous product by setting price.The inverse demand curve is given by P = 15 − Q.Firm 1 has MC₁(Q₁)= 1 and firm 2 has MC₂(Q₂)= 1.05.Based on this information,we can conclude that the market price will be:

(Multiple Choice)

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Question 29

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?

(Multiple Choice)

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Question 30

Which of the following is true of a perfectly contestable market?

(Multiple Choice)

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Question 31

You are the manager of a firm in a new industry.You have gotten the jump on the only other producer in the market.You know what your competitor's cost function is,and it knows yours.Your products,although different to experts,are indistinguishable to the average consumer.Your marketing research team has provided you with the following market demand curve: Q = 1,250 − .5P.Your cost function is C_A(Q_A)= 8Q_A.Your competitor's cost function is C_B(Q_B)= 6Q_B.Your diligent effort will allow you to decide how much of your product to provide and will allow you to place it on the market shortly before your competitor will be able to make its product available for sale.What output level will you choose,and what price will you charge?

(Essay)

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Question 32

Consider a Stackelberg duopoly with the following inverse demand function: P = 100 − 2Q₁ − 2Q₂.The firms' marginal costs are identical and are given by MC_i(Q_i)= c_iQ_i.Based on this information,the Stackelberg leader's marginal revenue function is:

(Multiple Choice)

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Question 33

With a linear inverse demand function and the same constant marginal costs for both firms in a homogeneous product Stackelberg duopoly,which of the following will result?

(Multiple Choice)

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Question 34

A decrease in firm 1's marginal cost will cause:

(Multiple Choice)

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Question 35

A market is NOT contestable if:

(Multiple Choice)

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Question 36

Which of the following is/are NOT price-setting oligopoly models?

(Multiple Choice)

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Question 37

Suppose you are the manager of a medium-sized firm that operates in an industry that has a four-firm concentration ratio of 100 percent.All firms in the industry are of equal size.In order to determine your firm's optimal output and price,you must obtain information about how rivals would respond to changes in your decisions.If you were the manager,how would you obtain this information?

(Essay)

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Question 38

Two firms produce different goods.Firm 1 has a positive-sloped reaction function.This can be explained best by:

(Multiple Choice)

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Question 39

Consider two firms competing to sell a homogeneous product by setting price.The inverse demand curve is given by P = 6 − Q.If each firm's cost function is C_i(Q_i)= 6 + 2Q_i,then each firm will symmetrically produce _ units of output and earn ___.

(Multiple Choice)

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Question 40

Showing 21 - 40 of 135

Consider a market consisting of two firms where the inverse demand curve is given by P = 500 − 2Q₁ − 2Q₂.Each firm has a marginal cost of $50.Based on this information,we can conclude that equilibrium price in the different oligopoly models will follow which of the following orderings?

Consider a market consisting of two firms where the inverse demand curve is given by P = 500 − 2(Q₁ + Q₂).If the Stackelberg leader's and follower's marginal costs are zero,the leader's marginal revenue is:

The inverse demand in a Cournot duopoly is P = a − b(Q₁ + Q₂),and costs are C₁(Q₁)= c₁Q₁ and C₂(Q₂)= c₂Q₂.The government has imposed a per-unit tax of $t on each unit sold by each firm.The tax revenue is:

An increase in firm 1's marginal cost will cause:

"An oligopoly is an oligopoly.Firms behave the same no matter what type of oligopoly it is." This statement is:

Profits are higher as isoprofit curves move closer to the:

Consider two firms competing to sell a homogeneous product by setting price.The inverse demand curve is given by P = 15 − Q.Firm 1 has MC₁(Q₁)= 1 and firm 2 has MC₂(Q₂)= 1.05.Based on this information,we can conclude that the market price will be:

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?

Which of the following is true of a perfectly contestable market?

Consider a Stackelberg duopoly with the following inverse demand function: P = 100 − 2Q₁ − 2Q₂.The firms' marginal costs are identical and are given by MC_i(Q_i)= c_iQ_i.Based on this information,the Stackelberg leader's marginal revenue function is:

With a linear inverse demand function and the same constant marginal costs for both firms in a homogeneous product Stackelberg duopoly,which of the following will result?

A decrease in firm 1's marginal cost will cause:

A market is NOT contestable if:

Which of the following is/are NOT price-setting oligopoly models?

Two firms produce different goods.Firm 1 has a positive-sloped reaction function.This can be explained best by:

Consider two firms competing to sell a homogeneous product by setting price.The inverse demand curve is given by P = 6 − Q.If each firm's cost function is C_i(Q_i)= 6 + 2Q_i,then each firm will symmetrically produce _ units of output and earn ___.

The Fundamentals of Managerial Economics

Market Forces: Demand and Supply

Quantitative Demand Analysis

The Theory of Individual Behavior

The Production Process and Costs

The Organization of the Firm

The Nature of Industry

Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets

Game Theory: Inside Oligopoly

Pricing Strategies for Firms With Market Power

The Economics of Information

Advanced Topics in Business Strategy

A Managers Guide to Government in the Marketplace

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Exam 9: Basic Oligopoly Models

Consider a market consisting of two firms where the inverse demand curve is given by P = 500 − 2Q1 − 2Q2.Each firm has a marginal cost of $50.Based on this information,we can conclude that equilibrium price in the different oligopoly models will follow which of the following orderings?

Consider a market consisting of two firms where the inverse demand curve is given by P = 500 − 2(Q1 + Q2).If the Stackelberg leader's and follower's marginal costs are zero,the leader's marginal revenue is:

The inverse demand in a Cournot duopoly is P = a − b(Q1 + Q2),and costs are C1(Q1)= c1Q1 and C2(Q2)= c2Q2.The government has imposed a per-unit tax of $t on each unit sold by each firm.The tax revenue is:

An increase in firm 1's marginal cost will cause:

"An oligopoly is an oligopoly.Firms behave the same no matter what type of oligopoly it is." This statement is:

Profits are higher as isoprofit curves move closer to the:

Consider two firms competing to sell a homogeneous product by setting price.The inverse demand curve is given by P = 15 − Q.Firm 1 has MC1(Q1)= 1 and firm 2 has MC2(Q2)= 1.05.Based on this information,we can conclude that the market price will be:

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?

Which of the following is true of a perfectly contestable market?

Consider a Stackelberg duopoly with the following inverse demand function: P = 100 − 2Q1 − 2Q2.The firms' marginal costs are identical and are given by MCi(Qi)= ciQi.Based on this information,the Stackelberg leader's marginal revenue function is:

With a linear inverse demand function and the same constant marginal costs for both firms in a homogeneous product Stackelberg duopoly,which of the following will result?

A decrease in firm 1's marginal cost will cause:

A market is NOT contestable if:

Which of the following is/are NOT price-setting oligopoly models?

Two firms produce different goods.Firm 1 has a positive-sloped reaction function.This can be explained best by:

Consider two firms competing to sell a homogeneous product by setting price.The inverse demand curve is given by P = 6 − Q.If each firm's cost function is Ci(Qi)= 6 + 2Qi,then each firm will symmetrically produce _________ units of output and earn ___________.

The Fundamentals of Managerial Economics

Market Forces: Demand and Supply

Quantitative Demand Analysis

The Theory of Individual Behavior

The Production Process and Costs

The Organization of the Firm

The Nature of Industry

Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets

Game Theory: Inside Oligopoly

Pricing Strategies for Firms With Market Power

The Economics of Information

Advanced Topics in Business Strategy

A Managers Guide to Government in the Marketplace

Filters

Consider a market consisting of two firms where the inverse demand curve is given by P = 500 − 2Q₁ − 2Q₂.Each firm has a marginal cost of $50.Based on this information,we can conclude that equilibrium price in the different oligopoly models will follow which of the following orderings?

Consider a market consisting of two firms where the inverse demand curve is given by P = 500 − 2(Q₁ + Q₂).If the Stackelberg leader's and follower's marginal costs are zero,the leader's marginal revenue is:

The inverse demand in a Cournot duopoly is P = a − b(Q₁ + Q₂),and costs are C₁(Q₁)= c₁Q₁ and C₂(Q₂)= c₂Q₂.The government has imposed a per-unit tax of $t on each unit sold by each firm.The tax revenue is:

Consider two firms competing to sell a homogeneous product by setting price.The inverse demand curve is given by P = 15 − Q.Firm 1 has MC₁(Q₁)= 1 and firm 2 has MC₂(Q₂)= 1.05.Based on this information,we can conclude that the market price will be:

Consider a Stackelberg duopoly with the following inverse demand function: P = 100 − 2Q₁ − 2Q₂.The firms' marginal costs are identical and are given by MC_i(Q_i)= c_iQ_i.Based on this information,the Stackelberg leader's marginal revenue function is:

Consider two firms competing to sell a homogeneous product by setting price.The inverse demand curve is given by P = 6 − Q.If each firm's cost function is C_i(Q_i)= 6 + 2Q_i,then each firm will symmetrically produce _ units of output and earn ___.