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The Corleone and Chung families are the only producers of good h in the United States. The market demand for good h is h=1200-20p. The costs of production for each of them are represented by the cost functions C1(h1) = 10h1 and C2(h2) = 20h2, respectively. Suppose both families must choose their output levels simultaneously.
a) Derive their reaction functions.
b) Calculate the Cournot equilibrium in this market. Indicate output levels, market price, and individual profits.
Determine the expended change to gross product and the price level likely to be in the short run explain how can this be illustrated by an aggregate demand and supply model?
On the planet Omicron Persei 8, government spending is $1000, net taxes are $1200, and planned investment is $1400. Consumers spend according to the equation C = 100 + 0.8Yd, where Yd represents disposable income.
The “Take It Home Today” promotion guarantees buyers of new plasma TVs that they are entitled to get any sale price the company might offer for the next 30 days. Do you think such a policy will increase demand for electronic appliances.
suppose 10 of all workers are of high ability. if a firm knows a workers ability workers of low ability are paid 20000
At many colleges and universities, businessprofessors receive higher salaries than professors in othersfields. Why might this be the case? Use the Internet and thereadings to answer this question and provide examples.
Suppose that thedemand curve for corn is downward-sloping but that the supply curveis perfectly price inelastic at a quantity of Q* once the corn isharvested. Furthermore, assume that the equilibrium price is $ 5per bushel.
Tickets cost $5 to play, and you get to pick a number between 1 and 20. If you guess right, you win $100. If you guess wrong, you win nothing. In either case, you must pay the $5 to play. What is your expected payoff if you play this game
Does it mean that the economy is starting to gather momentum for a faster growth rate? Explain. Hint: What obstacles remain for the economy to start growing at a faster rate?
1. Briefly describe cost-benefit analysis. Demonstrate understanding by applying the concept to an assessment of an immunization program. 2. Describe a national model of universal healthcare coverage. Compare the model's methods of funding for he..
I need a help in completing macroeconomics assignment
What are the prospects for profitable investments infinancial markets? Do markets follow a random walk so that profitsare mostly a matter of chance? Is it possible to outguess themarket? What are the best investment strategies?
The economics student knows that profit maximizing manager will produce quantity where marginal revenue equals marginal cost
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