HW 8_2 - ECO303.02 HW #8 Multiple-Choice Questions (1 pt...

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ECO303.02 HW #8 Multiple-Choice Questions (1 pt per question) There is only one correct choice in the following questions. 1) In comparing the Cournot equilibrium with the competitive equilibrium, A) both profit and output level are higher in Cournot. B) both profit and output level are higher in the competitive equilibrium. C) profit is higher, and output level is lower in the competitive equilibrium. D) profit is higher, and output level is lower in Cournot. 2) What is one difference between the Cournot and Stackelberg models? A) In Cournot, both firms make output decisions simultaneously, and in Stackelberg, one firm sets its output level first. B) In Stackelberg, both firms make output decisions simultaneously, and in Cournot, one firm sets its output level first. C) In Cournot, a firm has the opportunity to react to its rival. D) Profits are zero in Cournot and positive in Stackelberg. 3) The authors explain that the international copper cartel (CIPEC) has been largely
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HW 8_2 - ECO303.02 HW #8 Multiple-Choice Questions (1 pt...

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