If One Firm in a Duopoly Increases Its Production by One

question 211

Multiple Choice

If one firm in a duopoly increases its production by one unit beyond the monopoly output,that firm's profit ________,the other firm's profit ________,and the total profit of the duopoly ________.

• A) increases; increases; increases
• B) does not change; does not change; does not change
• C) increases; decreases; does not change
• D) increases; does not change; increases
• E) increases; decreases; decreases

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Definitions:

Coefficient Of Variation

A standardized measure of dispersion of a probability distribution or frequency distribution, calculated as the ratio of the standard deviation to the mean, expressed as a percentage.

Range

The difference between the highest and lowest values in a dataset.

Coefficient Of Variation

A standardized measure of the dispersion of a probability distribution or frequency distribution.

Chebysheff's Theorem

A statistical theorem that provides a minimum probability for the distribution of values within k standard deviations from the mean for any data set, regardless of the distribution's shape.