In the game in Scenario 13.17, who moves first? A) Potential ...

[EAugust]

In the game in Scenario 13.17, who moves first?
 
  A) Potential Entrant
  B) Incumbent Monopoly
  C) It's a sequential game; firms alternate moving first.
  D) Both players move simultaneously.
  E) Who moves first is decided by the equilibrium.

Question 2

What is the Hotelling rule for situations in which a producer can determine when a good is sold?
 
  A) Price must rise at exactly the rate of interest.
  B) Marginal cost must rise at exactly the rate of interest.
  C) Price minus marginal cost must rise at exactly the rate of interest.
  D) Price plus marginal cost must rise at exactly the rate of interest.
  E) Price and marginal cost must be independent of the rate of interest.

[jliusyl]

Answer to Question 1

A

Answer to Question 2

C

[EAugust]

Gracias!

[bulacsom]

Excellent