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Cournot equilibrium
Comparing the Cournot equilibrium to the perfectly competitive equilibrium (assuming the same demand and...
In comparing the long-run equilibrium of a monopolistically competitive firm and a perfectly competitive firm, which...
In comparing the long-run equilibrium of a monopolistically competitive firm and a perfectly competitive firm, which of the following is incorrect? Select one: a. they both produce at the minimum point of the average cost curve ob. the both produce at point where price equals average costs c. they both produce where MR = MC od. the both make zero economic profits e. none of the above. o
Cournot Equillibrium Why is the Cournot equilibrium an equilibrium? O A. Given the other firm's level...
Cournot Equillibrium
Why is the Cournot equilibrium an equilibrium? O A. Given the other firm's level of production, both firms are maximizing profits and cannot improve their situation by u O B. Both firms operate at minimum long-run average cost under a Cournot equilibrium, so changes to output would reduce long-run profits O c. Both firms operate at zero profit under a Cournot equilibrium, so they would face negative profits if they change output. O D. There are short-run barriers...
1) In Cournot equilibrium each firm chooses the quantity that maximizes its own profits assuming that...
1) In Cournot equilibrium each firm chooses the quantity that maximizes its own profits assuming that the firm’s rival will continue to sell at the same price as before.In Cournot equilibrium each firm chooses the quantity that maximizes its own profits assuming that the firm’s rival will continue to sell at the same price as before. Q: Why it is false? 2) Suppose that the demand curve for an industry’s output is a downward-sloping straight line and there is constant...
The demand curve for a perfectly competitive firm options: is upward sloping. is perfectly horizontal. is...
The demand curve for a perfectly competitive firm options: is upward sloping. is perfectly horizontal. is perfectly vertical. maybe downward or upward sloping, depending upon the type of product offered for sale. In the short run, the best policy for a perfectly competitive firm is to Question 17 options: shut down its operation if the price ever falls below average total cost. produce and sell its product as long as price is greater than average variable cost. shut down its...
Suppose a perfectly competitive, increasing-cost industry is in long-run equilibrium when market demand increases. In the long run, a typical firm _____ a.will stop production as total revenue no long...
Suppose a perfectly competitive, increasing-cost industry is in long-run equilibrium when market demand increases. In the long run, a typical firm _____ a.will stop production as total revenue no longer covers the average variable cost of production. b.experiences the same equilibrium price but a lower average total cost. c.experiences a lower average total cost and equilibrium price. d.experiences the same equilibrium price but a greater average total cost. e.experiences a higher average total cost and equilibrium price.
In a competitive (same as perfectly competitive) market, the equilibrium price is determined : at the intersection...
In a competitive (same as perfectly competitive) market, the equilibrium price is determined : at the intersection of the firm's demand curve and the market supply curve at the intersection of the market demand and supply curves at the intersection of the firm's demand and marginal cost curves so as to cover the costs of the potential firms so as to cover the costs of the firms currently in the industry
please solve both questions: QUESTION 1 A competitive firm faces for the good it is selling....
please solve both questions:
QUESTION 1 A competitive firm faces for the good it is selling. O A. a perfectly elastic demand cuve B. a perfectly inelastic demand curve OC. competition from a government franchise O D. a perfectly elastic supply curve QUESTION 2 A competitive firm might choose to set its price below the market price, because O A. this would result in higher average revenue. B. this would result in higher profits. C. this would result in lower...
Comparing a pure monopoly and a purely competitive firm with identical costs, we would find in...
Comparing a pure monopoly and a purely competitive firm with identical costs, we would find in long-run equilibrium that the pure monopolist's: O price, output, and average total cost would all be higher. O price and average total cost would be higher, but output would be lower. O price, output, and average total cost would all be lower. O price and output would be lower, but average total cost would be higher.
Cournot Oligopoly and Number of Firms In a Cournot oligopoly, each firm assumes that its rivals...
Cournot Oligopoly and Number of Firms In a Cournot oligopoly, each firm assumes that its rivals do not change their output based on the output that it produces. Ilustration: A Cournot oligopoly has two firms, YandZ. Yobservesthe market demand curve and the number of units that Z produces. It assumes that Z does notchange its output regardless of the number of units that it (Y) produces, so chooses a production level that maximizes its profits. The general effects of a...
Which of the following statements is true of a monopolistically competitive firm? a. It produces more...
Which of the following statements is true of a monopolistically
competitive firm?
a. It produces more than a perfectly competitive firm.
b. Its profits are protected by significant barriers to
entry.
c. It charges lower prices than a perfectly competitive
firm.
d. It earns positive economic profits in the long run.
e. It faces a downward sloping demand curve.
.
Which of the following statements is false? B D Cost and Price E F Quantity Point B shows the level...
In comparing the long-run equilibrium of a monopolistically competitive firm and a perfectly competitive firm, which of the following is incorrect? Select one: a. they both produce at the minimum point of the average cost curve ob. the both produce at point where price equals average costs c. they both produce where MR = MC od. the both make zero economic profits e. none of the above. o
Cournot Equillibrium
Why is the Cournot equilibrium an equilibrium? O A. Given the other firm's level of production, both firms are maximizing profits and cannot improve their situation by u O B. Both firms operate at minimum long-run average cost under a Cournot equilibrium, so changes to output would reduce long-run profits O c. Both firms operate at zero profit under a Cournot equilibrium, so they would face negative profits if they change output. O D. There are short-run barriers...
please solve both questions:
QUESTION 1 A competitive firm faces for the good it is selling. O A. a perfectly elastic demand cuve B. a perfectly inelastic demand curve OC. competition from a government franchise O D. a perfectly elastic supply curve QUESTION 2 A competitive firm might choose to set its price below the market price, because O A. this would result in higher average revenue. B. this would result in higher profits. C. this would result in lower...
Comparing a pure monopoly and a purely competitive firm with identical costs, we would find in long-run equilibrium that the pure monopolist's: O price, output, and average total cost would all be higher. O price and average total cost would be higher, but output would be lower. O price, output, and average total cost would all be lower. O price and output would be lower, but average total cost would be higher.
Cournot Oligopoly and Number of Firms In a Cournot oligopoly, each firm assumes that its rivals do not change their output based on the output that it produces. Ilustration: A Cournot oligopoly has two firms, YandZ. Yobservesthe market demand curve and the number of units that Z produces. It assumes that Z does notchange its output regardless of the number of units that it (Y) produces, so chooses a production level that maximizes its profits. The general effects of a...
Which of the following statements is true of a monopolistically
competitive firm?
a. It produces more than a perfectly competitive firm.
b. Its profits are protected by significant barriers to
entry.
c. It charges lower prices than a perfectly competitive
firm.
d. It earns positive economic profits in the long run.
e. It faces a downward sloping demand curve.
.
Which of the following statements is false? B D Cost and Price E F Quantity Point B shows the level...
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