« previous next »

Author Question: In a Bertrand duopoly with product differentiation, explain how a change in one firm's marginal cost ... (Read 91 times)

fagboi

  • Hero Member
  • *****
  • Posts: 535
on: Jul 1, 2018
In a Bertrand duopoly with product differentiation, explain how a change in one firm's marginal cost can have an effect on the price charged by the other firm.
 
  What will be an ideal response?

Question 2

If the supply of labor to a monopsonist is everywhere unit elastic, then the wage will equal
 
  A) the marginal expenditure.
  B) one-half of the marginal expenditure.
  C) the marginal revenue product of labor.
  D) one.
Microeconomics ¦ Perloff ¦ 8th Edition
Buy Test-Bank


cassie_ragen

  • Sr. Member
  • ****
  • Posts: 347
Reply #1 on: Jul 1, 2018
Answer to Question 1

Each firm's price is a function of the other firm's price. If one incurs an increase in marginal cost, it raises its price. This, in turn, causes the other firm to raise its price.

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

The second half of life brings a change from outward to inward concerns and from physical to ... The second half of life brings a change from outward to inward concerns and from physical to ...
Lymphocyte differentiation and activation. Lymphocyte differentiation and activation.
Carbon Dioxide, Trace Gases, and Climate Change Carbon Dioxide, Trace Gases, and Climate Change
Desertification and Climate Change Desertification and Climate Change
Climate change by international treaty Climate change by international treaty
Importance of Considering Gestalt Principles in Product Design Importance of Considering Gestalt Principles in Product Design
Video: Bone elongation - processes at the epiphyseal plate

For a complete list of videos, visit our video library