In a Bertrand model with identical firms and a non-differentiated product, price will increase in response to
A) an increase in the number of firms.
B) a decrease in the number of firms.
C) an increase in marginal cost.
D) a decrease in marginal cost.
Question 2
For a monopsonist, the labor supply curve is upward sloping because
A) the monopsonist must compete with other industries for that labor.
B) the monopsonist requires that the laborers are highly skilled.
C) the monopsonist is the only buyer in that labor market.
D) the monopsonist restricts the supply of labor.