9. Relative to the Nash equilibrium in the Cournot model, the Nash equilibrium in the Bertrand model with homogeneous products a results in the same output but a higher price. 0" t t l l (e results in the same output but a lower price. O (.1. ) ) ) results in a larger output at a lower price. ) results in a smaller output at a higher price. ) any of the above may result. Page 3 out of 10 10. In comparing the Cournot equilibrium with the competitive equilibrium, (a) both prot and output level are higher in Cournot. (b) both prot and output level are higher in the competitive equilibrium. (c) prot is higher, and output level is lower in the competitive equilibrium. (d) prot is higher, and output level is lower in Cournot. 11. In the Stackelberg model, there is an advantage (a) to waiting until your competitor has committed herself to a particular output level before deciding on your output level. (b) to being the rst competitor to commit to an output level. (c) to the rm with a dominant strategy. (d) to producing an output level which is identical to a monopolist's output level. 12. Two rms are situated next to a lake, and it costs each rm $1,500 per period to use lters that avoid polluting the lake. However, each rm must use the lakes water in production, so it is also costly to have a polluted lake. The cost to each rm of dealing with water from a polluted lake is $1,000 times the number of polluting rms. 1 l Nessie, Corp. Pollute Don't Pollute Pollute $2,000,-$2,000 -$1,000,-$2,500 Don't Pollute $2,500,$1,000 $1,500,$1,500 Lago, Inc. What is the Nash Equilibrium