Evaluate the following statement. The Cournot model basically assumes that the sole decision of each firm in a duopoly is one of determining how much to produce not which price to set
What will be an ideal response?
This is essentially correct. Once each firm determines how much it is going to produce based on what its rival produces then the industry wide output determines the price that each will charge in order to sell that level of output.
Economics
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Automatic stabilizers are considered
A) discretionary fiscal policies. B) discretionary monetary policies. C) non-discretionary fiscal policies. D) non-discretionary monetary policies.
Economics
Employers withhold several taxes from employees ' paychecks, one of which is FICA. Congress requires employers to pay half of the FICA tax and workers to pay the other half
Does this mean that the burden of the FICA tax falls evenly on employers and employees? Briefly explain.
Economics