- In A Game Every Dominant Strategy Will Be Part Of A Nash Equilibrium And Every Nash Equilibrium Has Dominant Strategie 1 (8.12 KiB) Viewed 13 times
A perfectly competitive firm is making losses in the short run. The market price will decrease in the long run. O True False
Camara's lawn-mowing service is a profit-maximizing competitive firm. Camara mows lawn for $27 each. His Total Cost each day is $280, of which $30 is a fixed cost. He mows 10 lawns a day. Camara should exit this market in the long-run but continue to operate in the short-run. O True O False
There are two major producers of corncob pipes in the world, both located in Herman, Missouri. Suppose that the inverse demand function for corncob pipes is described by p= 160 - 4q, where q is total industry output, and marginal costs are zero. What is the Cournot reaction function of firm 1 to the output, q2, of firm 2? O a. 40-4q O b. 160-4q2 O c. 20-.5q2 O d. 160-4q2
Which of the following market structures will have a larger market quantities? O a. Cournot with 2 firms O b. monopoly O c. perfect competition O d. Cournot with 4 firms
QUESTION 8 If the Lerner Index of Market Power is larger for businesses than for individuals in the market for airline travel, assuming identical costs for both consumer groups, this must mean that O a. Price for businesses is higher than for individuals O b. Demand elasticity at the monopoly price is higher for businesses than for individuals O c. Marginal Revenue is higher for businesses than for individual O d. All of the above 1 points Save Answer