Author Question: As other firms enter a monopoly's market, the demand curve a monopoly faces A) is unaffected. B) ... (Read 62 times)

fasfsadfdsfa · **on:** Jul 1, 2018

As other firms enter a monopoly's market, the demand curve a monopoly faces

A) is unaffected.
B) becomes more inelastic.
C) becomes more elastic.
D) may become more or less elastic, depending on its Lerner Index.

Question 2

In the Cournot model, if the products are differentiated

A) this reduces the pressure of one firm's decisions on the other.
B) this increases the pressure of one firm's decisions on the other.
C) there is no difference between this model and one with homogeneous goods.
D) marginal costs are necessarily different.