There are two firms in an industry and their products are perfect substitutes for each other. Each firm had a market share of 50% and charged equal prices
However, when the demand for the good declined due to a recession, Firm A lowered its price to increase sales. Firm B responded by lowering its price further. This is an example of the ________ of oligopoly. A) Bertrand model
B) Cournot model
C) Ricardian model
D) Keynesian model
A
Economics
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When potential GDP increases,
A) there is a movement down along the AS curve. B) there is a movement up along the AS curve. C) there is neither a movement along nor a shift in the AS curve. D) the AS curve shifts leftward. E) the AS curve shifts rightward.
Economics
What does the Law of Supply state? What is the key feature of a typical supply curve?
What will be an ideal response?
Economics