In the Cournot model, if the products are differentiated,
A) this reduces the pressure of one firm's decisions on the other.
B) this increases the pressure of one firm's decisions on the other.
C) there is no difference between this model and one with homogeneous goods.
D) marginal costs are necessarily different.
A
Economics
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Lewis has preferences given by the Cobb-Douglas utility function U(q1,q2 ) = q1aq21-a, where a > 0. Show that Lewis's total amount spent on each good, does not change with the prices
What will be an ideal response?
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One of the initial problems facing the newly elected President Clinton was a large budget deficit
a. True b. False Indicate whether the statement is true or false
Economics