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Question
Firms A and B under oligopoly are competing in an engine production market. Firm A's marginal cost is $14 while firm B's is $15. They play a sequential quantity setting-game and firm B is a first mover. Who has an advantage in this game? Now suppose they play a sequential price setting-game and firm B is a first mover. Who has an advantage in this game?
A company can rent a machine for an all-inclusive rate of $125 per hour and on average makes use of such a machine for 1600 hours per year.
With the understanding of fixed and variable costs and what those mean to a business in both the short run and the long run, address the following questions in your analysis: Why does it makes sense for an airline to offer discounted fares to student..
Please explain what labor force is all about? How is it related to unemployment rate?
Suppose that Country B has the same amount of net private saving in Year 1 and in Year 2. However, the government of Country B has a budget surplus of $200 billion in Year 1 and a budget surplus of $100 billion in Year 2. Other things equal, this ten..
Assuming that the voting rule is majority rule, are the group preferences in societies without value restricted preferences transitive or intransitive?
Assuming which the price elasticity of demand for U.S. exports equals 0.40 and the price elasticity of demand for U.S. imports equals 0.20.
An economy has the following Money demand function: (M/P)d= .4Y/i^.5 . Where is the nominal interest rate. Derive an expression for the velocity of money. What does it depend on? Explain why this dependency may occur.
Assume that fiat money and capital are perfect substitutes as assets and that individ- uals wish to hold the one with a higher rate of return, but that it takes time to adjust capital holdings. What is the equilibrium level of capital when the money ..
Compute market price, quantity of wheat produced, and the new equilibrium number of farms in this new situation.
a) Briefly explain how each of the following work and an example of a region that uses them:
Monetary policy is the action taken by the Federal Reserve to expand or contract the money supply and influence interest rates.
Suppose an economy’s production possibilities are represented by the function Y = A K L where Y represents total output (i.e GDP), K is capital, L is labor, and A is total factor productivity (TFP) (aka efficiency or productivity parameter). Calculat..
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