Which would you expect to make the highest profits, other things equal?

A. Stackelberg follower
B. Bertrand oligopolist
C. Cournot oligopolist
D. Stackelberg leader

Answer: D

Economics

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When exchange rates change and prices stay the same:

a. relative prices of traded goods in the two nations are unchanged. b. the price of foreign goods expressed in the home currency will always rise. c. imports get more expensive as the home currency depreciates. d. the price of foreign goods expressed in the home currency will always fall.

Economics

If asked to comment about a new tax on cotton collected from growers who do not grow their plants in the shade of other plants, an economist with no particular expertise in cotton growing might still note that

a. the price received by these cotton producers will fall by the full amount of the tax. b. the price paid by consumers of this cotton will rise by the full amount of the tax. c. the legal incidence of the tax does not determine who bears the burden of the tax. d. the tax was imposed on the wrong party, it should have been placed on buyers.

Economics