Which of the following is true about firms in both Cournot Oligopolistic Competition and Monopoly? A)...
Which of the following is true about firms in both Cournot Oligopolistic Competition and Monopoly?
A) p is higher than MR in both
B) A firm's residual demand elasticity is greater than market demand elasticity
C) Profits are always positive in both
D) p = LRAC in both
Homework Answers
Answer : The answer is option A.
For both Cournot Oligopolistic Competition and Monopoly market's firms the demand curve lies above the MR curve. The both market's firms produce and sell that quantity of output level where MR (Marginal Revenue) = MC (Marginal Cost) occur. And on that quantity level the charged price level is equal to demand. Hence price (P) is higher than marginal revenue (MR) in both market's firms. Therefore, option A is correct.
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Which of the following is true about firms in both Cournot
Oligopolistic Competition and Monopoly?
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Which of the following statements are true about both monopolistic competition and monopoly?
Which of the following statements are true about both monopolistic competition and monopoly? Check all that apply. Firms are not price takers. Price is above marginal cost. Firms can earn positive profit in the long run. Firms earn zero profit in the long run.
In the long run, all of the firms in a perfectly competitive industry will: exit the...
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Which of the following is not true of both firms in monopolistic competition and firms in...
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Problem 1. Cournot Competition with Two Firms Suppose there are two identical firms engaged in quantity competition (Co...
Problem 1. Cournot Competition with Two Firms Suppose there are two identical firms engaged in quantity competition (Cournot competition). The demand is P=1-Q where Q =91 +92. Assume that firm's i total cost of production is TC(qi) Compute the Cournot equilibrium (i.e., quantities, price, and profits).
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2. Consider a Cournot competition model with two firms, 1 and 2. They produce identical goods...
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In the long run, all of the firms in a perfectly competitive industry will: exit the industry if price is greater than average total cost. produce at an output level at which average total cost equals marginal cost. earn an economic profit greater than zero. O produce an output level at which price is greater than average total cost. Which statement about the differences between monopoly and perfect competition is INCORRECT? A monopoly will charge a higher price and produce...
Which of the following is not true of both firms in monopolistic competition and firms in perfect competition? A. Both types of firms produce at minimum ATC. B. Both types of firms produce where MC MR. C. Both types of firms have the possibility of short-run economic profits or losses. O D. Both types of firms can earn zero economic profits in long-run equilibrium
Problem 1. Cournot Competition with Two Firms Suppose there are two identical firms engaged in quantity competition (Cournot competition). The demand is P=1-Q where Q =91 +92. Assume that firm's i total cost of production is TC(qi) Compute the Cournot equilibrium (i.e., quantities, price, and profits).
Problem 1. Cournot Competition with Two Firms Suppose there are two identical firms engaged in quantity competition (Cournot competition). The demand is P 1 - Qwhere Q qi 2. Assume that firm's i total cost of production is TC(q) = . Compute the Cournot equilibrium (i.e., quantities, price, and profits)
Consider an oligopolistic market with demand represented by P=250-5Q. Assume that the MC for each firm is MC 50. a) If the firms each have the same MC and the market is characterized by price competition (like Bertrand competition), what will be the equilibrium price? Quantity? Industry profits? b) If the few firms are, instead able to perfectly collude, what will be the equilibrium price? Quantity? Industry profits? c) If the market is characterized by quantity competition (Cournot) and there...
2. Consider a Cournot competition model with two firms, 1 and 2. They produce identical goods in the same market with demand function P= 100-5Q with Q=91 +92. Furthermore, their production process generates pollution to the environment, which increases their cost of production. Their cost functions are given by C1(91,92) = 109,- +5Q and C291,92) = 15922 +45Q. a (10pts) Calculate their equilibrium quantities, price, and profits for both firms. b. (5pts) Consider they collude and form a cartel. That...
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Question 2 Which of the following statements about a monopoly is true? Not yet answered Select one: Marked out of 50.00 a. Fims decide how much to produce depending on their competitors' decisions. O b. Total profits are always lower than that of an oligopoly Flag quesionOc. There are only few firms producing the good. O d. The equilibrium price is lower than that of perfect competition O e. There is only one firm producing the good Next acer
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