Firm a Has a Higher Marginal Cost Than Firm B

question 16

Multiple Choice

Firm A has a higher marginal cost than firm B. They compete in a homogeneous product Cournot duopoly. Which of the following results will NOT occur?

• A) Q_A < Q_B
• B) Profit_A < Profit_B
• C) Revenue of firm A < Revenue of firm B
• D) Price_A < Price_B

Understand and calculate the F statistic in a multiple regression model.

Interpret the multiple coefficient of determination and its implications for model fit.

Identify variables in a regression model as categorical or continuous, and understand their role.

Understand the application of logistic regression for binary dependent variables.

---

Definitions:

Deductive Reasoning

A logical process in which a conclusion follows necessarily from the stated premises; if the premises are true, the conclusion must be true.

Inductive Reasoning

A method of reasoning in which general principles are inferred from specific observations, moving from specific instances to broader generalizations.

Set of Premises

A collection of statements or propositions that form the basis for a conclusion or logical argument.

Mathematics

The scientific study of numbers, quantities, shapes, and patterns, using symbolic logic and methodology to solve theoretical problems and practical applications.