Suppose the airplane market is an oligopoly. If the firms act as a monopolist, the price will be ________ and if the firms act as competitors the price will be ________
A) $13 million per plane; $1 million per plane
B) $1 million per plane; $13 million per plane
C) $13 million per plane; $13 million per plane
D) $1 million per plane; $1 million per plane
E) None of the above answers is correct.
A
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In a Cournot duopoly, we find that Firm 1's reaction function is Q1 = 50 - 0.5Q2, and Firm 2's reaction function is Q2 = 75 - 0.75Q1. What is the Cournot equilibrium outcome in this market?
A) Q1 = 20 and Q2 = 60 B) Q1 = 20 and Q2 = 20 C) Q1 = 60 and Q2 = 60 D) Q1 = 60 and Q2 = 20
The budget deficit/surplus projections for 2003 that were made in 2000 were wrong, because there was an
A. anticipated increase in immigration. B. anticipated increase in defense spending. C. unanticipated increase in interest rates. D. unanticipated recession.