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Suppose the demand for Pepsi is qp = 54 - 2pp + 1p. The demand for Coke is qc = 54 - 2pc + 1pp. Each firm faces a constant marginal cost of zero. Determine the Bertrand equilibrium prices. What happens to the Bertrand equilibrium prices and profits if increased differentiation causes the demand for Pepsi to become qp = 104 - 2pp + 1pc while the demand for Coke remains unchanged?
A perfectly competitive market is described by the demand Q = 70 - 2p and the supply curve Q =5p - 20. A firm in the market has a total cost equation of C = 16+ Q^2 + 2Q. Calculate the equilibrium price in the market.
What are the effects of an increase in the money supply? Show graphically and explain. When is monetary policy more effective, when the LM curve is relatively flat, or when the LM curve is relatively steep? Explain.
Given your experiences as a consumer, do you consider monopolies to be good or bad for the general public? In crafting your answer, feel free to refer to a specific situation that you may have encountered to illustrate your point. Credit for this que..
You are the manager of a firm which produces also markets generic type of soft drink in a competitive market.
Why might two presidential candidates appear to have very similar opinions during an election year even if they come from different parties? Repablicans and Democrats usually agree on most issues
Create a supply and demand graph in Excel that demonstrates the relationship between the amount buyers are willing to purchase and the quantity available. You may select your own data points, but you must discuss the relationship between supply and d..
Now suppose that the city doubles the fee from $8 to $16. Let's determine what effect this will have on revenue for the city. To be conservative, let's assume that the absolute value of the elasticity of the demand for car trips in central London is ..
The cost of running the government program ( assuming no storage costs). Illustrate what is the total price of the program to consumers.
Suppose that the annual growth in real income in Japan is expected to be between 2 and 3 percent and that income elasticity of demand for housing in Tokyo is estimated to be between 0.8 and 1.0 for rental units and between 0.7 and 1.5 for owner-occup..
label a level of population at which the population is expected to decline. Why is the population dexlining at this point?
Hotel X believes that there is an opportunity to build a profitable hotel in City XYZ but they are not sure whether to go ahead with the project. They have asked your group for advice. After some research you have the following information. Currently..
Discuss this week’s objectives with your team. Your discussion should include the topics you feel comfortable with, any topics you struggled with, and how the weekly topics relate to application in your field.
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