In the Hotelling model, firms can avoid price competition by differentiating their products
Indicate whether the statement is true or false
T The firms can locate at the ends of the Hotelling's Main Street, so their prices have small rather than large effects on their competition for sales.
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Suppose Company A's profits increase by $10 million and nobody is made worse off. The CEO of Company A keeps all $10 million for herself. This situation
A) is definitely efficient. B) is definitely not in the self-interest of Company A. C) is definitely not in the social interest. D) is definitely fair.
Samantha holds stocks in four companies. If she adds stocks of several more companies she will decrease
a. firm specific risk and market risk. b. firm specific risk but not market risk. c. market risk but not firm specific risk. d. neither firm specific nor market risk.