The market for internet access in Olympus has two identical providers – Alcyoneus and Thanatos. At the current Cournot equilibrium market price of $85 a month, each firm sells 250 connections. If Thanatos decides to sell 251 units instead, Thanatos’ profits ____ and Alcyoneus’s profits _____ A. will increase; will increase. B. will increase; will decrease or stay the same. C. will decrease; will stay the same. D. will decrease; will decrease. E. will decrease; will increase
The market for internet access in Olympus has two identical providers – Alcyoneus and Thanatos. At the current Cournot equilibrium market price of $85 a month, each firm sells 250 connections. If Thanatos decides to sell 251 units instead, Thanatos’ profits ____ and Alcyoneus’s profits _____ A. will increase; will increase. B. will increase; will decrease or stay the same. C. will decrease; will stay the same. D. will decrease; will decrease. E. will decrease; will increase
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The market for internet access in Olympus has two identical providers – Alcyoneus and Thanatos.
At the current Cournot
decides to sell 251 units instead, Thanatos’ profits ____ and Alcyoneus’s profits _____
A. will increase; will increase.
B. will increase; will decrease or stay the same.
C. will decrease; will stay the same.
D. will decrease; will decrease.
E. will decrease; will increase
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