For a Market with a Linear Demand Curve and Constant

question 31

Multiple Choice

For a market with a linear demand curve and constant marginal cost of production, why are the reaction functions for the Cournot duopoly sellers also straight lines?

• A) The reaction functions do not have to be straight lines, and they are only drawn this way in the book to keep the figures simple.
• B) Cournot thought the lines would be straight, but this was proven wrong by other economists.
• C) Marginal revenue is always linear when marginal costs are constant.
• D) We know that the marginal revenue curves for linear demand curves are also straight lines.

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Definitions:

ANOVA

Short for Analysis of Variance, a statistical method used to compare means of three or more samples, testing whether at least one group differs significantly from others.

Factorial Design

Factorial design is an experimental design technique that allows the investigation of the effects of two or more independent variables on a dependent variable simultaneously.

Types of ANOVA

Different variations of Analysis of Variance, a statistical method used to compare means across multiple groups, including one-way ANOVA, two-way ANOVA, and repeated measures ANOVA.