Multiple Choice
A particular market is served by three firms. The market demand curve is given by p = 200 - y. Each firm incurs a constant cost per unit of $40. Firm 3's Cournot reaction function is given by:
A) y * = (160 - y1 - y3) /2.
B) p * = 130 - (p2 + p3) /2. 3 3
C) y * = (160 - y1 - y2) /2.
D) y * = 200 - p3 - y2 - y1. 3 3
Correct Answer:
Verified
Correct Answer:
Verified
Q48: Market demand is given by P =
Q49: As the number of firms in a
Q50: A self enforcing agreement is:<br>A)one that only
Q51: There are only two souvenir vendors at
Q52: When modeling an oligopoly as a prisoners
Q54: Two firms produce a homogenous product. Let
Q55: Suppose the demand function in the industry
Q56: The generalized no- entry condition is that
Q57: Market demand is given by P =
Q58: The collusive solution is:<br>A)collectively irrational because each