The Stackelberg model is more appropriate than the Cournot model in situations where
A) there are more than two firms.
B) all firms enter the market simultaneously.
C) one firm makes its output decision before the other.
D) firms will be likely to collude.
C
Economics
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If consumers' incomes increase and the demand for bus rides decreases
A) bus rides are a normal good. B) consumers are behaving irrationally. C) bus rides are an inferior good. D) none of the above.
Economics
If the inverse demand function for a monopoly's product is p = a - bQ, then the firm's marginal revenue function is
A) a. B) a - (1/2)bQ. C) a - bQ. D) a - 2bQ.
Economics