If an incumbent faces an identical potential entrant with no costs of entry, the incumbent will
A) produce the Cournot duopolist level of output.
B) produce the Stackelberg leader level of output.
C) set price equal to marginal cost.
D) shut down.
B
Economics
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Saving is positive for all levels of disposable income
A) above zero. B) above where the consumption line intersects the 45-degree line. C) below where the consumption line intersects the 45-degree line. D) above where the consumption function intersects the vertical axis. E) above autonomous consumption.
Economics
When a unit tax of $2 is levied on a product
A) the entire $2 is paid by the consumer. B) the entire $2 is paid by the producer. C) both the consumer and producer pay $2 each. D) the consumer pays part of the $2 and the producer pays the rest.
Economics