Assuming Cournot behavior, what happens to the market output, the price of the output, and each firm's output as the number of firms in a market increases?
What will be an ideal response?
As the number of firms increases, price declines, and each firm produces less, but total market output increases.
Economics
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Inflation targeting requires monetary policymakers to rely heavily on the Phillips curve.
Answer the following statement true (T) or false (F)
Economics
All of the following statements about variable costs are true except
A. they are equal to total costs in the long run. B. they are constant as output increases. C. they are zero if output is zero. D. they are equal to the product of average variable cost and the output level.
Economics