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A duopoly faces a market demand of p=120-q. Firm 1 has a constant marginal cost of MC1=20. Firm 2's constant marginal cost is MC2=40. Calculate the output of each firm, market output, and price if there is
a) A collusive equilibrium or
b) A cournot equilibrium
An asset with an original cost of $100,000 and a current book value of $20,000 is sold for $50,000 as part of a capital budgeting project. The company has a tax rate of 30%. What is the after-tax cash flow derived from the sale of the asset
The average family in country A spends 60 percent of their disposable income on residence. The average family in country B spends 25 percent of their disposable income on residence. The average monthly salary in country A is $2,500 and in country ..
Suppose that the demand for Federal funds curve is such that the quantity of funds demanded changes by $160billion for each 1 percent change in the Federal funds interest rate. Also, assume that the current Federal funds rate is at the 3 percent r..
b) What is the rate of inflation between 2007 and 2008 if the money supply in 2008 is 1,100 instead of 1,050 c) What is the rate of inflation between 2007 and 2008 if the money supply in 2008 is 1,100 and output is 2008 is 12,600
Assume a firm is a monopsonist that can hire its first worker for $6 but must increase the wage rate by $3 to attract each successive worker (so that the second worker must be paid $9, the third $12, and so on).
What is the short-run marginal cost curve b) What is the equation for average variable cost c) What is the minimum level of average variable cost d) What is the firm's short-run supply curve
If he invests $100 monthly, how much will be in the retirement fund in 25 years if it averages a return of 5.5% APR with monthly compounding. Another retirement fund offer 6% EAR with monthly compounding. What would the value of this be ..
Determine which of the following is a test of the statistical signficiance of the entire regression equation?
Given that monetary policymakers, firms, and workers all recognize that the decline in the real exchange rate is only temporary and given the three policy responses described in part d of 580 Chapter 17 New Classical Macro Confronts New Keynesian ..
Assume that Country A has a population of 500,000 and only produces one good- car. Country A produces 100,000 cars per year. The people in Country A purchase 90,000 cars, but there are not enough cars to fulfill all the demand.
If in an economy a $150 billion increase in investment spending creates $150 billion of new income int he first round of the multiplier process and $105 billion in the second round, the multiplier and the marginal propensity to consume will be
What is the total demand curve for the firm What are the marginal revenue curves for the firm What are the monopoly prices and quantities for each group when the firm conducts third degree price discrimination
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