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Suppose that a competitive fringe produces with costs given by C = 3q f so that MC = 3 represents the fringe supply curve. Demand is given by P = 10 - Q and the dominant firm's costs are given by C = 2qd . Suppose also that capacity for the dominant firm cannot be expanded beyond qd ≤ 5.
(a) Compute the dominant firm's profits in equilibrium.
(b) Suppose that the dominant firm is able to cause an increase in the fringe's marginal costs of $1. Compute the change in the dominant firm's profits.
(c) Finally, suppose that raising rivals' costs causes an increase in the dominant firm's average costs to 2.75. What is the net effect now on the dominant firm's profits.
How do the demographic trends of two prominent East Asian countries, China and Japan, compare and contrast? What are some of the impacts of these trends, and what unique challenges does each country face as a result? How has the government for these ..
Which of the following are tools available to the Federal Reserve to influence the money supply directly?
The manufacturer's managers are convinced that they could make more sales if they could convince the retailers to carry a full line of products. How could the manufacturer induce its retailer to carry a fuller line of products
your first assignment as an engineering technology graduate from the university of houston downtown is to recommend to
Suppose that Taher's pizza business operates under competitive conditions and that his short-run production function is q=20^E. Once again assume w = $6 but suppose the government imposes a tax of 25% on each dollar he pays his workers, to cover thei..
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Elucidate what would be the immediate and long run effects on c, k, and y. Explain by drawing the path of these variables. Consider that you impose the new saving rate.
q1. assume which chenyu expects his income to be 50000 per year until she retires. in addition he has accumulated
Analyse and evaluate the role of different entry strategies when operating in culturally distant markets. Make reference to factors external and internal affecting the choice of foreign market entry modes.
You are an efficiency expert hired by a manufacturing firm that uses K and E as inputs. The production function for a competitive firm is Q = K1/2 E1/2. The firm can hire labor at a wage of $15 per hour and rent capital at a rate of $60 per unit. Com..
What is happening to the value of the U.S. dollar these days? What causes the value of the U.S. dollar to rise or fall? Who demands U.S. dollar? Who supplies U.S. dollar? How can the falling U.S. dollar impact your travel expenses? Why would a cheap ..
Suppose you are a manager of a watch making firm in a competitive market. Your cost of production is given by C=200+2Q2 where Q is the level of output and C is the total cost.
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