3. True, false, or uncertain? Explain briefly. A Cournot duopolist and a Stackelberg follower have the same best response function. b. A cartel with two identical firms must evenly split production and profits. c. A price ceiling may lead a monopolist to increase output. d. The Cournot model with homogeneous costs has an equilibrium in dominant strategies. e. A payment of $5000 today is better than a payment of $5500 in one year.
3. True, false, or uncertain? Explain briefly. A Cournot duopolist and a Stackelberg follower have the same best response function. b. A cartel with two identical firms must evenly split production and profits. c. A price ceiling may lead a monopolist to increase output. d. The Cournot model with homogeneous costs has an equilibrium in dominant strategies. e. A payment of $5000 today is better than a payment of $5500 in one year.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter10: Monopolistic Competition And Oligopoly
Section: Chapter Questions
Problem 3SCQ: Consider the curve in the figure below, which shows the market demand. marginal cost, and marginal...
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