In a Cournot equilibrium, each firm chooses an output level which:
a. maximizes joint profits.
b. maximizes the price received.
c. maximizes profits given what the other firms produce.
d. maximizes revenue given what the other firms produce.
c
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By taking the long position on a futures contract of $100,000 at a price of 96 you are agreeing to ________ a ________ face value security for ________
A) sell; $100,000; $96,000. B) sell; $96,000; $100,000. C) buy; $100,000; $96,000. D) buy; $96,000; $100,000.
In some industries, pollution rights are sold from one company that does not need them to another that does. In recent years, conservation groups have purchased pollution rights so they cannot be exercised. Companies in need of pollution rights will find that:
A. the supply of pollution rights has increased. B. the relative costs of pollution control equipment have gone up. C. the relative costs of pollution control equipment have fallen. D. the prices of pollution rights have fallen.