The Brander-Spencer model identified market failure in certain industries due to
A) unfair competition.
B) wildcat destructive competition.
C) environmental negative externalities associated with pollution.
D) limited competition.
E) lack of excess returns.
Question 2
An imperfectly competitive firm has the following demand curve: Q = 100 - 2P. What is marginal revenue equal to when P = 40?
What will be an ideal response?
