Author Question: Which of the following is true of a duopoly with differentiated products? A) A firm loses all its ... (Read 31 times)

altibaby · **on:** Jun 29, 2018

Which of the following is true of a duopoly with differentiated products?

A) A firm loses all its customers when its rival lowers the price of its product.
B) A firm does not lose all its customers when its rival lowers the price of its product.
C) A firm faces a perfectly elastic demand curve.
D) A firm faces a perfectly inelastic demand curve.

Question 2

Bobby was researching the economic growth of a country between 2006 and 2011. Using 2006 as the base year, he calculated a twelve percent increase for real GDP and a ten percent increase for nominal GDP. His results indicate that

A) he made an error when calculating nominal GDP.
B) the quantity of goods and services produced decreased over the period.
C) the quantity of goods and services produced increased and prices decreased over the period.
D) the quantity of goods and services produced and prices both decreased over the period.
E) the quantity of goods and services produced did not change and prices decreased over the period.