Author Question: In a duopoly with homogeneous products, the best response of a firm is to charge a lower price than ... (Read 71 times)

Mimi · **on:** Jun 29, 2018

In a duopoly with homogeneous products, the best response of a firm is to charge a lower price than its rival as long as ________.

A) the rival's price is above marginal cost
B) the rival's price is below marginal cost
C) the rival's price is above average cost
D) the rival's price is below average cost

Question 2

When a hard frost hits orange groves in Florida, the supply of orange juice ________ and price ________.

A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases