Suppose That Microsoft and Netscape Compete in the Market for PC

question 74

Multiple Choice

Suppose that Microsoft and Netscape compete in the market for PC Internet browsers.Initially these firms compete as Cournot duopolies with symmetric reaction functions.If Microsoft enters into exclusive contracts with PC suppliers that preclude suppliers from loading Netscape's Internet browser on PCs loaded with the Windows operating system, then Netscape's marginal cost of distributing its browser would increase to $5 per unit. The new equilibrium would entail Microsoft supplying __________ browsers and Netscape supplying ____________ browsers to the market.The end result is ________ profits for Netscape.

• A)more; fewer; lower.
• B)fewer; more; higher.
• C)more; more; lower.
• D)fewer; fewer; higher.

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Definitions:

Employment Data

Statistical information related to the labor market, including figures on employment, unemployment, job creation, and workforce demographics.

Screening Phone Call

A preliminary telephone call to determine the caller's intent or the relevance of the call before any substantive conversation takes place.

Firm Handshake

A strong and solid grip exchanged between two people upon meeting or agreeing, often interpreted as a sign of confidence and reliability.

Face-to-Face Interview

A personal interaction between two or more individuals in the same physical space for the purpose of communication or assessment.