This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose two firms in a duopoly implicitly collude and charge a high price. How might each firm ... (Read 93 times)

SGallaher96

  • Hero Member
  • *****
  • Posts: 509
on: Jun 29, 2018
Suppose two firms in a duopoly implicitly collude and charge a high price. How might each firm benefit from advertising that it will match the lowest price offered by its competitor?
 
  A) The advertisement is meant to suggest to consumers that the offered price is actually the lowest price available.
  B) The offer to match prices is a way of signaling to antitrust authorities that the firms are not engaged in illegal collusion.
  C) The advertisement ensures that the other firm does not cheat. If a firm cheats on the agreement and charges the lower price, the rival firm will retaliate by doing the same.
  D) The offer to match prices is a way of deterring entry by other large firms, thereby keeping the market share of the existing firms intact.

Question 2

Refer to Figure 13-14. It is possible to lower the average cost of production by expanding output beyond Q0 to Q1. Why wouldn't a firm expand its output to Q1?
 
  A) Demand is not sufficient for consumers to buy Q1.
  B) The firm wants to maximize accounting profit rather than economic profit.
  C) The firm would suffer an economic loss at Q1 while it would break even at Q0.
  D) The firm's marginal revenue would be negative at Q1.
InMicro ¦ Hubbard, O'Brien ¦ 1st Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jazzlynnnnn

  • Sr. Member
  • ****
  • Posts: 335
Reply #1 on: Jun 29, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 50% of students answer this correctly


SGallaher96

  • Member
  • Posts: 509
Reply 2 on: Jun 29, 2018
Excellent

kjohnson

  • Member
  • Posts: 330
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

(c) snow in Nunavut, alter the local albedo, causing altered microclimates. High albedos are found (c) snow in Nunavut, alter the local albedo, causing altered microclimates. High albedos are found
Mosaic of Charge-Coupled Devices (CCDs) Mosaic of Charge-Coupled Devices (CCDs)
Shy children often have a high arousal level in novel social situations. Over time, parents can help ... Shy children often have a high arousal level in novel social situations. Over time, parents can help ...
The hazmat training pyramid. It is important to train from the ground up, starting with a firm grasp ... The hazmat training pyramid. It is important to train from the ground up, starting with a firm grasp ...
1) (a) What is Coulomb?s Law? (b) Find the net electrostatic force on the charge labeled ?P? in ... 1) (a) What is Coulomb?s Law? (b) Find the net electrostatic force on the charge labeled ?P? in ...
The price of rice in a small country is currently $6 per pound. In order to help low-income ... The price of rice in a small country is currently $6 per pound. In order to help low-income ...
Video: Definitions of stroke volume, preload definition & Factors influencing stroke volume

For a complete list of videos, visit our video library