Author Question: Suppose that in a perfectly competitive industry the equilibrium industry quantity is 10,000 units. ... (Read 222 times)

tsand2 · **on:** Jul 1, 2018

Suppose that in a perfectly competitive industry the equilibrium industry quantity is 10,000 units. Suppose that the monopoly output is 5,000 . For a 2-firm Cournot Oligopoly (N =2) known as a duopoly, what is a likely Cournot QUANTITY for the industry?
a. 3,000 units
b. 5,000 units
c. 6,667 units
d. 10,000 units
e. 15,000 units

Question 2

If both firms plan to be in business for 5 years, then the Nash Equilibrium will be
a. For each firm charge a LP every year
b. For neither firm to charge a LP in early years, but to charge a HP in later years.
c. For each firm to charge a HP every year
d. For neither firm to charge a HP in early years, but to charge a LP in later years.