« previous next »

Author Question: If two firms behave as Cournot duopolists, the level of social welfare is lower than if the same ... (Read 52 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?

On average, the stomach produces 2 L of hydrochloric acid per day.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

Did you know?

On average, someone in the United States has a stroke about every 40 seconds. This is about 795,000 people per year.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Acute Stress, Glucocorticoid Level, Synaptic Plasticity, and Learning Acute Stress, Glucocorticoid Level, Synaptic Plasticity, and Learning
Behavioral and Social-Cognitive Approaches to Personality Behavioral and Social-Cognitive Approaches to Personality
Weber's Three Components Of Social Class Weber's Three Components Of Social Class
Enduring Social Issues Enduring Social Issues
Many U.S. regions under threat due to changes in sea level Many U.S. regions under threat due to changes in sea level
How much the temperature will rise depends on many factors that affect the level of GHG emission How much the temperature will rise depends on many factors that affect the level of GHG emission
Video: Nucleic acid digestion -small intestine

For a complete list of videos, visit our video library