If the minimum efficient scale in aluminum production exceeds the quantity of aluminum any individual aluminum siding producer buys,
a. siding producers should integrate backward into aluminum production
b. there will be a monopoly in aluminum production
c. siding producers should not integrate backward into aluminum production
d. siding producers will be charged prices above what the cost of producing aluminum themselves would be
e. siding companies will switch to vinyl
C
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Suppose Cournot duopolists firms face the same market demand curve, but have differing costs. At the Nash-Cournot equilibrium, the firm with the lower cost will
A) have a lower price for its product than its competitor. B) produce a smaller output than its competitor. C) have a higher price for its product than its competitor. D) produce a larger output than its competitor.
What is the difference between a program budget and a line-item budget? Is one more valuable to evaluating the effectiveness of government expenditures? Why?
What will be an ideal response?