In the Hotelling model, what effect would an increase in the transportation cost t have on, in the first instance, a monopoly firm and, in the second instance, two firms located at the extremes of the line segment who compete over the marginal consumer?
a. The monopolist's profit would decrease but the duopolists' would increase.
b. Both monopolist's and duopolists' profits would increase.
c. Both monopolist's and duopolists' profits would decrease.
d. The monopolist's profit would increase but the duopolists' would decrease.
Question 2
The lemons problem is that
a. cars of verifiable high quality are withheld from the used car market
b. cars of verifiable low quality are withheld from the used car market
c. cars of unverifiable high quality are withheld from the used car market
d. cars of unverifiable low quality are withheld from the used car market
The enhancement effect observed by Emerson.
Space-filling model of an actin filament (shades of red) with one myosin head (gray and two shades o
The Seasonality Effect
Alzheimer’s medications work by intensifying the effect of acetylcholine at the receptor.
The effect of pH on the activity of lysozyme
The Serial-Position Effect