Which of the following is NOT a way to deal with risk?

In the Cournot model, if one firm increases its output

A) the market will not clear because now there is a surplus. B) the market price drops, reducing the revenues received by the other firms. C) the others will kick it out of the oligopoly. D) the other firms are unaffected.

Julia knows that the price elasticity of movie rentals is 3. She knows, therefore, that if she raises her price from $2 to $2.50, her rentals will drop by approximately

A. 150 percent. B. 100 percent. C. 75 percent. D. 33 percent.