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Author Question: Assuming a homogeneous product, the Bertrand equilibrium price is A) independent of the number of ... (Read 51 times)

javeds

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on: Jul 1, 2018
Assuming a homogeneous product, the Bertrand equilibrium price is
 
  A) independent of the number of firms.
  B) independent of the firm's marginal costs.
  C) equal to the Cournot equilibrium price.
  D) equal to the monopoly price.

Question 2

Suppose the labor market is competitive, the supply curve of labor is upward sloping, and the amount of capital is fixed. If the output market changes from a competitive market to a monopoly, what is the effect on its demand for labor? Explain.
 
  What will be an ideal response?
Microeconomics ¦ Perloff ¦ 8th Edition
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InfiniteSteez

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Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

A monopoly will decrease output from the competitive level and thus hire fewer workers. This reduction in the demand curve for labor will result in lower wages.


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