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Author Question: In a Stackelberg game, a monopolist could deter entry from a potential rival by A) telling the ... (Read 121 times)

PhilipSeeMore

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on: Jul 1, 2018
In a Stackelberg game, a monopolist could deter entry from a potential rival by
 
  A) telling the potential rival not to enter.
  B) strategically moving first.
  C) moving to a Bertrand model.
  D) None of the above.

Question 2

Producer surplus is the sum of the profits earned by all firms in a market.
 
  Indicate whether the statement is true or false


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Animal_Goddess

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Reply #1 on: Jul 1, 2018
Answer to Question 1

B

Answer to Question 2

False. This definition ignores fixed costs. Producer surplus minus fixed costs equals profits.


PhilipSeeMore

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Reply 2 on: Jul 1, 2018
Wow, this really help

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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