If two firms behave as Cournot duopolists, the level of social ...

[nelaaney]

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

[Laurenleakan]

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

[nelaaney]

Thank you

[Laurenleakan]

Happy to help you