A competitive firm has a continuous marginal cost curve.It finds that as output increases， its marginal cost curve first rises， then falls， then rises again.If it wants to maximize profits， the firm should never produce at a positive output where price eq

A firm produces one output， using one input， with the production function f（x） = 2x1/3；where x is the amount of input.The cost function for this firm is proportional to the price of the input times the cube of the amount of output.。

If an upstream monopolist sells to a downstream monopolist， the price to consumers will be higher than the competitive price， but not so high as it would be if the downstream monopolist took control of the upstream monopolist's business and ran both t

duopoly in which two identical firms are engaged in Bertrand competition will not distort prices from their competitive levels.。

North Bend currently has one McDonald'；s fast food franchise.Demand for hamburgers in North Bend is given by Q = 200 Q hamburgers.If a second McDonald'；s franchise were to move into North Bend（and both behave as duopolists）， the profit of the orig

In the Bertrand model of duopoly， each firm sets its price， believing that the other's price will not change.When both firms have identical production functions and produce with constant returns to scale， the Bertrand equilibrium price is equal to mar

In the Cournot model， each firm chooses its actions on the assumption that its rivals will react by changing their quantities in suchaway as to maximize their own profits.。

A Stackelberg leader will necessarily make at least as much profit as he would if he acted as a Cournot oligopolist.。

Monopoly always has constant elasticity demanD.。

In a Nash equilibrium， everyone must be playing a dominant strategy。