Author Question: If two firms behave as Cournot duopolists, the level of social welfare is lower than if the same ... (Read 73 times)

nelaaney

  • Hero Member
  • *****
  • Posts: 560
If two firms behave as Cournot duopolists, the level of social welfare is lower than if the same firms act as a cartel.
 
  Indicate whether the statement is true or false

Question 2

The demand for a monopoly's output is p = 200 - Q. The monopoly's production function is Q = 2L, and the market wage is 4. How many units of labor will the monopolist employ at its profit maximization level of output?
 
  A) L = 49.5
  B) L = 4623
  C) L = 198
  D) L = 10


Laurenleakan

  • Sr. Member
  • ****
  • Posts: 309
Answer to Question 1

False. The Cournot duopolists produce more at a lower price than a cartel. Thus, social welfare is lower with a cartel.

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

For a complete list of videos, visit our video library