In a Bertrand model with differentiated products,
A) firms can set price above marginal cost.
B) firms set price at marginal cost.
C) price is independent of marginal cost.
D) firms set price independently of one another.
A
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Investment is
A) spending by businesses on things which can be used to produce goods and services in the future. B) the production of goods for immediate satisfaction. C) the purchasing of stocks and mutual funds. D) goods bought by households.
If the quantity of public goods produced were decided by market forces (supply and demand),
a. there would be more goods provided than would be optimal b. there would be fewer goods provided than would be optimal c. the markets would provide the optimal number of goods d. prices would be optimal, but the optimal quantity of goods would not be produced e. the firms producing the public goods would earn excess profit