If the aggregate supply curve is vertical, then the short-run Phillips curve will

Which of the following correctly explains the role of economic agents in a free market?

A) Economic agents set production quotas for sellers in the market. B) Economic agents set prices according to the production cost of each good. C) Economic agents allocate goods to those buyers who need the goods the most. D) Economic agents allocate goods to those buyers who value the goods the most.

Suppose Cournot duopolists firms face the same market demand curve, but have differing costs. At the Nash-Cournot equilibrium, the firm with the lower cost will

A) have a lower price for its product than its competitor. B) produce a smaller output than its competitor. C) have a higher price for its product than its competitor. D) produce a larger output than its competitor.