Explain why the intersection of the best-response functions is the Cournot equilibrium
What will be an ideal response?
On a best-response function, a firm selects the profit-maximizing level of output given the level of output it believes the other firm will produce. At the intersection of the best-response functions, what one firm believes the other firm will produce actually is the amount the other firm produces. Thus, neither firm has an incentive to change the level of output.
Economics
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The figure above shows
A) a positive relationship. B) a direct relationship. C) a negative relationship. D) no relationship between the variables.
Economics
If a consumer is buying three goods A, B, and C, then she will be in equilibrium when total utility from each good is equal
a. True b. False Indicate whether the statement is true or false
Economics