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Consider a situation of price competition between two firms. Both firms have the same unit costs of c = 20.
(i) First assume firms choose their price simultaneously. Explain precisely whether (PA = 25, PB = 24.99) is a Nash Equilibrium in this game.
(ii) Now suppose firm A sets its price PA before firm B chooses price PB. Again explain precisely whether (PA = 25, PB = 24.99) is a SPE in this game.
Illustrate what fraction of the total variation in trades of Bright Side remains unexplained.
Padre works for a trade magazine that publishes. lists of Power-Sizing Exponents (PSE) that reflect economies of scale for developing engineering estimates of various types of equipment. Padre has been unable to find any published data on the VMIC ma..
In retrospect, it is clear that the U.S. economy was in a precarious position in 2006. Trillions of dollars had been borrowed to buy housing on the expectation that home prices would keep on rising. In 2006 the house prices fell; what happened in rel..
Milo and George are barbers. In one day, Milo can give 6 haircuts or give 8 shaves. In one day, George can give 5 haircuts or give 10 shaves. What is Milo’s opportunity cost of one haircut? What is George’s opp. cost of one haircut? Who has absolute ..
Which of the following statements goes against Porter's 5 forces model?
In describing confidence intervals on a mean, z and t intervals are frequently mentioned. How are z and t confidence intervals different? Choose one interval and give an example of how it could be applied within an operations or production environmen..
Compared with perfect competition, quantity produced in monopolistic competition is inefficient as price is higher than marginal cost (i.e. allocative inefficiency). Why do some economists argue that even if price is higher than marginal cost, it doe..
Demonstrate a critical understanding of the standardization vs adaptation debate in International Marketing. Make reference to positives and negatives from organisational and consumer perspectives.
Write a short essay on the business strategies that were used by Wal-Mart to make the company the largest retailer in the world. As part of your answer, make sure that discuss whether you believe that these strategies will continue to work as well in..
Suppose that the only input used in the generation of solar energy is sunlight
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..
What is the amount of six equal annual deposits that can provide ten annual withdrawals, where a first withdrawal of $10717 is made at the end of year seven and subsequent withdrawals increase at $1875 over the previous year, at an interest rate of 5..
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