choose all correct statements Select one or more: a. Suppose that all the firms have same and constant marginal costs. The Cournot equilibrium gets closer to perfect competition if the number of firms gets larger. b. If you compare markets with higher and lower HHI, the former market will have a higher markup. c. Given that the number of firms in the market is constant, the higher the variance of the market share, the higher HHI is. d. In Cournot competition, investment to reduce my own cost does not affect my competitor.
choose all correct statements Select one or more: a. Suppose that all the firms have same and constant marginal costs. The Cournot equilibrium gets closer to perfect competition if the number of firms gets larger. b. If you compare markets with higher and lower HHI, the former market will have a higher markup. c. Given that the number of firms in the market is constant, the higher the variance of the market share, the higher HHI is. d. In Cournot competition, investment to reduce my own cost does not affect my competitor.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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choose all correct statements
Select one or more:
a.
Suppose that all the firms have same and constant marginal costs. The Cournot equilibrium gets closer to
b.
If you compare markets with higher and lower HHI, the former market will have a higher markup.
c.
Given that the number of firms in the market is constant, the higher the variance of the market share, the higher HHI is.
d.
In Cournot competition, investment to reduce my own cost does not affect my competitor.
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