Explains it correctly in detail [25]Which of the following beliefs is consistent with the kinked demand curve model?If a firm increases its price, it expects the competition to also increase their prices.If a firm decreases its price, it expects the competition to increase their prices.If a firm increases its price, it expects the competition to increase their advertising.If a firm decreases its price, it expects the competition to also decrease their prices.А.В.С.D.[26]in equilibrium.Bertrand competitors, producing a homogeneous product, will price as perfectly competitive firmsА.TrueВ.FalseA firm will not want to move from being a Cournot producer to a Stackelberg leader because its[27]profit will likely decrease.A.TrueВ.FalseIn the long-run under monopolistic competition, prices will be higher than those that would occur[28]in a perfectly competitive market.А.TrueВ.False[29]Which of the following models predicts that, within a range, prices will not respond to cost changes?А.Cournot ModelВ.Stackelberg ModelС.Kinked Demand Curve ModelD.None of the above[30]market demand is given by Q = 1000 - P, where P is the market price and Q is the market quantity (equalingthe sum of the three firms production). If A's marginal cost is constant at 200, and A believes that B and Cwill produce 100 and 200 units, respectively, then A should produceSuppose a market consists of 3 firms (A, B, and C), each behaving as a Cournot producer. Theunits to maximize its profit.A.100В.150С.250D.None of the above[31]have identical costs and behave as Cournot competitors. Moreover, the current Cournot equilibrium marketprice equals $75. If another firm entered this market, having the same costs as the other two firms, with allthree behaving as Cournot competitors, then we would predict the market price would:Suppose an economist studies a particular industry, currently consisting of two firms, both of whichcontinue to equal $75be greater than $75be less than $75А.В.С.

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[25] Which of the following beliefs is consistent with the kinked demand curve model? If a firm increases its price, it expects the competition to also increase their prices. If a firm decreases its price, it expects the competition to increase their prices. If a firm increases its price, it expects the competition to increase their advertising. If a firm decreases its price, it expects the competition to also decrease their prices. А. В. С. D. [26] in equilibrium. Bertrand competitors, producing a homogeneous product, will price as perfectly competitive firms А. True В. False A firm will not want to move from being a Cournot producer to a Stackelberg leader because its [27] profit will likely decrease. А. True В. False In the long-run under monopolistic competition, prices will be higher than those that would occur [28] in a perfectly competitive market. А. True В. False [29] Which of the following models predicts that, within a range, prices will not respond to cost changes? A. Cournot Model Stackelberg Model Kinked Demand Curve Model В. С. D. None of the above Suppose a market consists of 3 firms (A, B, and C), each behaving as a Cournot producer. The [30] market demand is given by Q = 1000 - P, where P is the market price and Q is the market quantity (equaling the sum of the three firms production). If A's marginal cost is constant at 200, and A believes that B and C will produce 100 and 200 units, respectively, then A should produce units to maximize its profit. А. 100 В. 150 С. 250 D. None of the above [31] have identical costs and behave as Cournot competitors. Moreover, the current Cournot equilibrium market price equals $75. If another firm entered this market, having the same costs as the other two firms, with all three behaving as Cournot competitors, then we would predict the market price would: Suppose an economist studies a particular industry, currently consisting of two firms, both of which continue to equal $75 be greater than $75 be less than $75 А. В. С.