choose all correct statements   Select one or more:   a.   Suppose that all the firms have same and constant marginal costs. The Cournot equilibrium gets closer to perfect competition if the number of firms gets larger.   b.   If you compare markets with higher and lower HHI, the former market will have a higher markup. c.   Given that the number of firms in the market is constant, the higher the variance of the market share, the higher HHI is.   d.   In Cournot competition, investment to reduce my own cost does not affect my competitor.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter15: Oligopoly And Strategic Behavior
Section: Chapter Questions
Problem 12P
icon
Related questions
Question

choose all correct statements

 

Select one or more:

 

a.

 

Suppose that all the firms have same and constant marginal costs. The Cournot equilibrium gets closer to perfect competition if the number of firms gets larger.

 

b.

 

If you compare markets with higher and lower HHI, the former market will have a higher markup.

c.

 

Given that the number of firms in the market is constant, the higher the variance of the market share, the higher HHI is.

 

d.

 

In Cournot competition, investment to reduce my own cost does not affect my competitor.

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Herfindahl - Hirschman Index
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Managerial Economics: Applications, Strategies an…
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Microeconomic Theory
Microeconomic Theory
Economics
ISBN:
9781337517942
Author:
NICHOLSON
Publisher:
Cengage
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning