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Demand in a market dominated by two firms (a duopoly) is determined according to: P = 204 - 0.8Q The two firms have identical marginal cost of: MC = 29.7 Find the total quantity purchased by consumers when the firms form a cartel
Which of these two strategies do you think would have the greatest impact on sales volume. Explain
An agricultural firm has a production function (products of the whole year) given by q = 500 SQRT(SF). q is output of agricultural products in pounds. S is land area in square feet. F is number of farmers working. Find the best way to produce 10000 p..
Arguments in favor of having developing countries focus on exporting manufactured goods include
Consider a market with a demand curve of P=10-Q and a supply curve of P=Q. Before the imposition of a tax, equilibrium quantity is 5, and equilibrium price is $5 (verify this). If a tax of $5 per unit is placed on this market, quantity traded falls t..
Compare the sum of consumer and producer surplus for the monopoly with the results for perfect competition.
Give an example of a bank balance sheet with a leverage ratio of 20. If the value of the bank’s assets rises by 2 percent, what happens to the value of the owners’ equity in this bank? How large a decline in the value of bank assets would it take to ..
Consider the statement, “Monopoly power comes from market acceptance, not from a patent, a prettier product, a slick advertising campaign, or anything else. So rather than spend your time in court, you should be out there drumming up business.” Do yo..
What are factors that shift supply curve for this good. How do you expect supply and demand of your selected good to change in next year. Relate your expectation to price and quantity.
An student must decide to pay for auto insurance on a monthly or an annual basis. if paid annually, the cost is $1650. if paid monthly, the cost is $150 at the start of each month. what is the rate of return for buying the insurance on an annual basi..
Equilibrium in our graph of AD and SRAS occurs where AD = SRAS. Unless otherwise specified, we assume that the economy rapidly moves to equilibrium. What ensures that the economy is in equilibrium?
q1. bobs lawn-mowing service is a competitive firm. at the current level of production the firm mows 10 lawns a day.
Listed below are the weekly sales from the household department at a local discount store: $35,000, $46,000, $28,000, $35,000, $68,000, and $52,000. Find the Arithmetic Mean, Median, and Mode.
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