Suppose That Microsoft and Google Compete in the Market for PC

question 76

Multiple Choice

Suppose that Microsoft and Google 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 Google's Internet browser on PCs loaded with the Windows operating system,then Google's marginal cost of distributing its browser will increase to $5 per unit. The new equilibrium would entail Microsoft supplying __________ browsers and Google supplying ____________ browsers to the market.The end result is ________ profits for Google.

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

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Definitions:

Ancestral Connection

An ancestral connection refers to the relationships, influences, and heritage that individuals or cultures have with their ancestors.

Aeneas

A mythical Trojan hero, central to both Greek mythology and Roman legend, known for his piety and role in founding the city that would become Rome.

Imperial Portrait Statues

Sculptures that depict emperors or imperial figures, often used to convey authority and prestige.

Omniscience

The attribute of having complete or unlimited knowledge, awareness, or understanding; perceiving all things.