2. Consider a market in which a monopolist would charge at price PM, a pair of Cournot duopolists would charge at price pp, and a competitive firm would charge at price PCE. Which of the following is true? PM > PCE PCE > PM (c) PCE > PD > PM (d) PCE > PM > PD (e) PM> PD > PCE (f) PM > PCE > PD (g) None of the above Answer: 2e. (a) PD (b) PD
2. Consider a market in which a monopolist would charge at price PM, a pair of Cournot duopolists would charge at price pp, and a competitive firm would charge at price PCE. Which of the following is true? PM > PCE PCE > PM (c) PCE > PD > PM (d) PCE > PM > PD (e) PM> PD > PCE (f) PM > PCE > PD (g) None of the above Answer: 2e. (a) PD (b) PD
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![2. Consider a market in which a monopolist would charge at price PM, a pair of Cournot duopolists
would charge at price pp, and a competitive firm would charge at price PCE. Which of the following
is true?
(a) PD > PM > PCE
(b) PD > PCE > PM
(c) PCE > PD > PM
(d) PCE > PM > PD
(e) PM > PD > PCE
(f) PM > PCE > PD
(g) None of the above
Answer: 2e.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc0e74402-4def-45e8-a616-e6a4b6de7acb%2Fd4b53425-2cbc-49dc-9bfe-cc1431f3e07f%2Ftvs5319_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. Consider a market in which a monopolist would charge at price PM, a pair of Cournot duopolists
would charge at price pp, and a competitive firm would charge at price PCE. Which of the following
is true?
(a) PD > PM > PCE
(b) PD > PCE > PM
(c) PCE > PD > PM
(d) PCE > PM > PD
(e) PM > PD > PCE
(f) PM > PCE > PD
(g) None of the above
Answer: 2e.
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