Which of the following assumptions were made by the Cournot model of oligopoly?
a. Each seller psychoanalyzes the competition and decides how to react in all possible situations.
b. Each seller psychoanalyzes the competition and exactly predicts the output decisions of the competitors.
c. Each seller chooses its own output and believes the others in the market will respond to its choices.
d. Each seller chooses its own output and believes the others in the market will not respond to its choices.
D
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If the demand for labor is unchanged, population growth will increase the supply of labor and increase the equilibrium wage
Indicate whether the statement is true or false
Protection of an infant industry should be withdrawn once that industry:
a. charges the same price as foreign competitors. b. goes public on the stock exchange. c. raises a large amount of sales revenue. d. achieves sufficient size to compete with foreign firms. e. earns enough profit as a result of the subsidies to remain in business.