An Industry Has Two Firms

question 47

Multiple Choice

An industry has two firms.Firm 1's cost function is c(y) = 2y +500 and firm 2's cost function is c(y) = 2y + 400.The demand curve for the output of this industry is a downward-sloping straight line.In a Cournot equilibrium, where both firms produce positive amounts of output,

• A)the firm with lower fixed costs produces more.
• B)the firm with higher fixed costs produces more.
• C)both firms produce the same amount of output.
• D)there is less output than there would be if the firms colluded to maximize joint profits.
• E)firm 1 always operates in the region where the demand curve is inelastic.

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Definitions:

Community Partners

Organizations or groups that collaborate with others to achieve shared goals, often in social, educational, or environmental initiatives.

Significant Disabilities

Disabilities that are profound and have a major impact on an individual's ability to perform daily life activities.

Community Resources

Refers to local services and organizations that support the well-being of individuals and families within a community, such as libraries, health clinics, and food banks.

Growth And Development

The physical and psychological changes and progressions that occur in human beings from birth to the end of life.