Recurring fixed costs may lead to only one firm producing in a Cournot oligopoly model.
Answer the following statement true (T) or false (F)
True
Rationale: As fixed costs increase, the best-response functions drop to zero earlier -- eventually no longer crossing at the interior where both firms produce. (See end-of-chapter exercise 24.2.)
Economics
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Which of the following is included as government purchases in gross domestic product (GDP)?
a. Social Security payments to elderly citizens b. Welfare benefits distributed to the poor c. Outright grants from government to recipients d. Payments to clerical workers hired by government e. Unemployment compensation benefits
Economics
A high HHI indicates that a market may be dominated by one large firm
Indicate whether the statement is true or false
Economics