Playing the game in Scenario 13.13 sequentially would A) not ...

[laurencescou]

Playing the game in Scenario 13.13 sequentially would
 
  A) not change the equilibrium.
  B) change the equilibrium to (R1,C1 ).
  C) change the equilibrium to (R2,C1 ) if R moved first.
  D) change the equilibrium to (R2,C1 ) if C moved first.
  E) change the equilibrium to (R2,C2 ).

Question 2

What is the value of the Lerner index under perfect competition?
 
  A) 1
  B) 0
  C) infinity
  D) two times the price

[wuly]

Answer to Question 1

C

Answer to Question 2

B