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Case: Consider a market with linear inverse demand P = a- Q, where Q = q1 + q2 + q3.
Firms 1 and 2 are private firms. Each one's objective is to maximize its own profit. They have zero fixed cost and zero variable cost.
Firm 3 is a public firm, its objective is to maximize Social Surplus. It has zero fixed cost, but constant marginal cost given by c.
Calculate the equilibrium quantities, price, profit and social surplus levels if these firms choose their quantities simultaneously.
What factors contributed to the stagflation of the 1970s? How did Volker deal with the high inflation? Cuyamaca College. econ 120.
1. governments in australia are concerned about the high level of house prices?using ideas of consumer and producer
A new 2-lane road is needed in a part of town that is growing. At some point the road will need 4-lanes to handle the anticipated traffic.
What are the equilibrium quantities when the nations trade freely at price of $15? Explain your answer
Competitive firms located in Lesotho (Africa) sell their tube socks only in Europe and theUnited States (which do not produce the good themselves).
Which of the following is a prime determinant of master carton size? Which of the following is not true about rigid containers? In which type of handling system is labor cost generally the highest percentage?
Explain carefully why interest rates on each of the following short-term financial instruments will be closely tied to the level federal funds rate: short-term bank CDs, short-term Treasury bills, short-term commercial paper. Why is the yield on shor..
Explain why the cost structure associated with many kinds of information goods and services might imply a market supplied by a small number of large firms.
The price elasticity of demand for imported mineral water is estimated to be ?0.20 over a wide interval of prices. The federal government decides to raise the import tariff on foreign mineral water, causing its price to rise by 20 percent. Will the q..
The government passes a law that allows a substantial subsidy for every acre of land used to grow tobacco. How does this program affect the long-run supply curve for tobacco?
The best place for finding late-breaking information about antitrust activity is in the "Legal Beat" column of the Wall Street Journal. You can find it inside the Marketplace section. Try to find at least one relevant article and determine the bas..
Questions: (a) What is the price of equilibrium, AVC and AC? ; (b) Draw the curve, and explain the decision about the company in the long run.
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