A new firm enters a market which is initially serviced by a Bertrand duopoly charging a price of $30. Assuming that the new firm is equally as efficient as the incumbent firms, what will the new price be should the three firms coexist after the entry?

The federal budget deficit and the trade balance are often referred to as the

A) twin deficits. B) dueling depreciators. C) balance of payments. D) national debt.

As the price of good X increases from $5 to $8, quantity demanded falls from 100 to 80. Based upon this information we can conclude that the demand for X is

A) elastic. B) inelastic. C) unit inelastic. D) insufficient information for judgment.