Lecture+24+quiz - C. Total output and price approach the...

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Question 1: What is the name for the model in which two firms choose output quantity sequentially (i.e. firm one chooses output first and then firm two chooses output after observing firm one’s choice)? A. Cournot duopoly model. B. Bertrand duopoly model. C. Stackelberg duopoly model. D. Bernoulli duopoly model. E. Weinberg duopoly model. Quiz: Question 2: In the Cournot model of oligopoly, with identical firms competing simultaneously on quantity, what happens to the market equilibrium as the number of firms gets large? A. Total output remains the same but the price decreases to the competitive market price. B. Total output and price remain the same.
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Unformatted text preview: C. Total output and price approach the competitive market output and price. D. Total output and price approach the monopoly output and price. Quiz: Question 3: In the Bertrand model of duopoly, with identical firms competing on price, what is the different between the simultaneous-move outcome and the sequential-move outcome? [Assume no fixed cost and constant marginal cost.] A. Under simultaneous moves the price is lower than under sequential moves. B. Under simultaneous moves the price is higher than under sequential moves. C. There is no difference. Quiz:...
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Lecture+24+quiz - C. Total output and price approach the...

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