The Cournot model assumes that firm A maximizes its profit, holding firm B's output constant
What will be an ideal response?
True. Even though firm B does react to changes in firm A's output, firm A assumes that firm B does not react but instead holds its output constant.
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A country is using a beggar-thy-neighbor policy whenever:
A) it uses contractionary monetary policy to attract capital inflows from other countries. B) it devalues its currency to improve its macroeconomic position at the expense of its trading partners. C) it revalues its currency to improve its macroeconomic position and that of its trading partners. D) it cooperates with other countries in establishing its monetary policy.
You have been given an opportunity to invest in a stock. Recent trends suggest that a one percent rise in the stock market leads to approximately a two and one-half percent rise in the price of this stock
The real risk-free rate currently stands at 6% and stocks on average have provided 12% returns. Using the capital asset pricing model, determine the appropriate discount rate for the stock in question.