Firm 1 and firm 2 compete as a Cournot oligopoly. There is an increase in marginal cost for firm 1. Which of the following is NOT true?
A. Firm 1 will produce less.
B. Both firm 1's and firm 2's reaction functions are shifted.
C. Firm 2 will produce more.
D. Profits of firm 1 will decrease.
Answer: B
Economics
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The table above shows Mary's utility from chips and soda. The table shows that Mary has diminishing marginal utility for
A) both chips and soda. B) neither chips nor soda. C) soda, but not chips. D) chips, but not soda.
Economics
In a market where a positive externality is present, the effect of a government subsidy would be to ensure:
A. a more fair distribution of surplus. B. an efficient outcome. C. that those who enjoy the benefit receive the surplus. D. All of these statements are true.
Economics