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Consider the market for carbonated water and suppose that demand is given by D(p) = 100 – 5p There are only two firms producing carbonated water, each with the same constant unit cost c = 2.
(a) What are the equilibrium prices and quantities if the firms behave as Cournot competitors? What are the firms’ profits?
(b) What are the equilibrium prices and quantities if the firms behave as Bertrand competitors? What are the firms’ profits?
Suppose the feder reserve adopts a tight money policy to slow the economy down because of its concern about potentially rising inflation inflation. Show this policy outcome graphically using the IS-LM model assuming people believe the new policy is t..
what are the problems with inflation itself? be specific. is the real inflation that consumers have in their real-life
The United States has been the largest exporter of corn for over 40 years. How can Economics and comparative advantage explain this? Other countries have no use for corn since they produce other foods.
The increase in the share of profits in national income has brought about demands for an increase in corporate tax. Consider a closed economy where the share of profits in national income is α, and where d of the after-tax profits are distributed ..
sometimes a bidder on a work contract may bid lower than what would maximize hisher profit from the contract and the
How would an increase in the world price of oil affect the amount of frictional unemployment. Is this unemployment undesirable. What public policies might affect the amount of unemployment caused by this price change.
Some Classical and Monetarist economists claim that inflation is always a "monetary phenomenon." What do they mean by this claim and are they correct?
In a separate group discussion board, present two arguments. The first should argue in favor of the proposed merger, from the perspective of the firms. The second agrues against the proposed merger from the perspective of the broader public intere..
What difference does it make, if any, if technology is moving very fast in the market so that this game proves to be one-time-only simultaneous play?
Find out the Marginal Revenue and Marginal Cost
Which diagram should use to explain third degree price discrimination relating to sub-prime borrower discrimination?
the represents the potential outcomes of your first salary negotiation after graduation assuming this is a sequential
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