If two firms behave as Cournot duopolists, the level of social welfare is lower than if the same firms act as a cartel
Indicate whether the statement is true or false
False. The Cournot duopolists produce more at a lower price than a cartel. Thus, social welfare is lower with a cartel.
Economics
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Which factor does not affect the elasticity of demand for a good?
(A) The importance of the good to the consumer. (B) The availability of substitute goods. (C) The consumer's perception of the good as necessity or luxury. (D) An increase in population.
Economics
Compared to regulations, corrective taxes on pollution ______.
a. provide less incentive to reduce pollution b. provide little benefit to the public c. create a higher level of efficiency d. create higher numbers of negative externalities
Economics