Over the past several decades, U.S. firms have faced more competition from overseas firms. Does this have any impact on the market power of U.S. oligopoly firms?
A) no, because domestic firms in oligopoly markets are always so dominant that overseas producers have little or no impact on those markets
B) no, because the United States government has effectively blocked all imports that might compete with domestic firms in oligopoly industries
C) Yes, competition from overseas firms can substantially limit domestic firms' market power.
D) There is no way to know.
C
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Suppose Cournot duopolist firms operate with each having a cost of 30qi (i = 1,2 ) so that each firm's marginal cost is 30. The inverse market demand curve is P = 120 - Q where Q = q1 + q2
Suppose there were no barriers to entry and firms continued to enter so long as there were positive economic profits. At the Nash-Cournot equilibrium, the total output, Q, is A) 30. B) 45. C) 60. D) 90.
Government regulation of the prices charged by monopolies is an example of
a. safety regulation b. economic regulation c. Herfindahl regulation d. antitrust regulation e. antimerger regulation