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In a Cournot oligopoly, a decrease in a firm's marginal cost leads to
a. Reduced output and a higher market price
b. Reduced output and a lower market price
c. Higher output and a higher market price
d. Higher output and a lower market price
When two firms compete as a Cournot duopoly, the resulting market price is ______________ the price a monopolist with the same market demand and (greater than, smaller than, the same as) costs would choose.
When two firms competing in duopoly decide to collude, the resulting market price is _____________ the price a monopolist with the same market demand and (greater than, smaller than, the same as) costs would choose.
This change undermines the marketplace for the replacement which is about twice the size of the marketplace for T3MP.
Consider the basic Rothschild-Stiglitz model with asymmetric information and two types on consumers. A policymaker who has taken this class suggests that is might be beneficial to impose a flat tax on healthy people and distribute the tax revenue to ..
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Nonmarket work includes time spent
Assume that the 12% rate used in problem 2 is a constant dollar rate (i’). Now discount your end of year cash flows from problem 10 by inflation (f=4%) and re-compute your IRR’ and NPW’. What is the market interest rate (i)______________ IRR’________..
A proposal has been made to increase the price paid by the consumers to the suppliers to $40. What will the resulting quantities demanded and supplied and the resulting utilization be?
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Sally deposited $100 a month in her savings account for 24 months. For the next five years she made no deposits. What is the future worth in Sally's account at the end of seven years if the account earned 6% interest annually, compounded monthly?
If the average employee compensation grew at the rate of 3.5% per year, explain how many years would it take for it to double.
What is the relationship between good X and Y. With the aid of a well-labeled diagram, show what happens to equilibrium price and quantity of good X, if the price of good Y increases.
Determine what fiscal policy measure has a more direct impact to the economy, an increase in government spending or an equal decrease in taxes if consumer confidence is lower than the previous month. Explain your reasoning.
In the US economy we have two sectors, private and public sectors. In recession time, how can public sector help the private sector? Provide an example in the recent years. In non recession time, how can private sector help the public sector?
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