It is increasingly clear that technological change is the only explanation for an expanding wage gap between high-skill and low-skill workers

If an average cost pricing rule is imposed on the firm in the figure above, the deadweight loss will be

A) zero. B) $150. C) $50. D) $250.

Which alteration of the assumptions behind the Bertrand model can help avoid the Bertrand Paradox (that an outcome resembling perfect competition may arise with even as few as two firms)?

a. assume firms have limited capacities. b. assume firms produce differentiated rather than homogeneous products. c. assume firms play repeatedly and thus may collude. d. all of the above.