The Nash equilibrium in a Bertrand game in which firms produce perfect substitutes and have equal marginal costs is:
a. efficient because all mutually beneficial transactions will occur.
b. efficient because of the free entry assumption.
c. inefficient because some mutually beneficial transactions will be foregone.
d. inefficient because of the uncertainties inherent in the game.
a
Economics
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Which of the following is rival and excludable?
A) a public good B) a natural monopoly C) a private good D) a common resource
Economics
Refer to Figure 11-11. Constant returns to scale
A) occur between 10,000 and 20,000 pictures frames per month. B) occur for output rates greater than 5,000 picture frames. C) occur between 5,000 and 20,000 picture frames per month. D) will shift the long-run average cost curve downward.
Economics