If only two identical firms operate in a market, consumers prefer ...

[vinney12]

If only two identical firms operate in a market, consumers prefer
 
  A) a Cournot equilibrium.
  B) a Stackelberg equilibrium.
  C) a collusive equilibrium.
  D) any equilibrium since they all result in the same consumer surplus.

Question 2

If a firm pays its workers 10 per hour, the marginal product of labor is 5 units per hour, and the price of the firm's product is 15 per unit, what is the price elasticity of demand facing the firm?
 
  A) -1.15
  B) -2.15
  C) -1.0
  D) -3.56

[soda0602]

Answer to Question 1

B

Answer to Question 2

A