« previous next »

Author Question: If two firms behave as Cournot duopolists, the level of social welfare is lower than if the same ... (Read 67 times)

nelaaney

  • Hero Member
  • *****
  • Posts: 560
on: Jul 1, 2018
If two firms behave as Cournot duopolists, the level of social welfare is lower than if the same firms act as a cartel.
 
  Indicate whether the statement is true or false

Question 2

The demand for a monopoly's output is p = 200 - Q. The monopoly's production function is Q = 2L, and the market wage is 4. How many units of labor will the monopolist employ at its profit maximization level of output?
 
  A) L = 49.5
  B) L = 4623
  C) L = 198
  D) L = 10
Microeconomics ¦ Perloff ¦ 8th Edition
Buy Test-Bank


Laurenleakan

  • Sr. Member
  • ****
  • Posts: 309
Reply #1 on: Jul 1, 2018
Answer to Question 1

False. The Cournot duopolists produce more at a lower price than a cartel. Thus, social welfare is lower with a cartel.

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

nelaaney

  • Hero Member
  • *****
  • Posts: 560
Reply #2 on: Jul 1, 2018
Thank you :)


Laurenleakan

  • Sr. Member
  • ****
  • Posts: 309
Reply #3 on: Jul 1, 2018
Happy to help you


« previous next »
 

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Mechanisms of pain at the nociceptor level Mechanisms of pain at the nociceptor level
Phrases that Decrease Customer Service Level Phrases that Decrease Customer Service Level
Bones of the lower extremities. Bones of the lower extremities.
Dermatological changes with myxedema can occur behind the eyes or in the lower leg, as shown here. Dermatological changes with myxedema can occur behind the eyes or in the lower leg, as shown here.
When a Tornado Strikes: Social Organization Following a Natural Disaster When a Tornado Strikes: Social Organization Following a Natural Disaster
A horizontally opposed engine design helps to lower the vehicle’s center of gravity. A horizontally opposed engine design helps to lower the vehicle’s center of gravity.
Video: Introduction to Macular Degeneration

For a complete list of videos, visit our video library