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The inverse market demand in a homogeneous-product Cournot duopoly is p=200-3(Q1+Q2) and costs are C1(Q1)=26Q1 and C2(Q2)=32Q2.
Determine th reaction function for each firm.
FIrm 1 Q1=
Firm2 Q2=
Calculate each firm's equailibrium output.
Firm 1
Firm 2
Calculate the equilibrium market price.
Calculate the profit each firm earns in equilibrium
Firm1
Firm2
Determine the four stages of the Business Cycle and compare and Contrast five internal and external Business Cycle theories.
Elucidate unequivocally why the foundation of trade has nothing to do with absolute advantage and only the law of comparative advantage is relevant.
Her salary rate is $8 every hour and she has 15 hours per day to allocate between labor and leisure.
Use an appropriate diagram, demonstrate and describe briefly how a increase in minimum wage could result in higher employment in a monopolistic labor market.
Profit by having physicians available in case we need them. Therefore, the government should subsidize medical education.
Compute producer surplus, how much is the difference between the producer surplus and profit in this case
Calculate the appreciation or depreciation of the US dollar relative to the Japanese yen.
Describe the output level of the firm, the number of workers it employs and the profit of the firm.
Illustrate What would happen if prices were lowered when demand was inelastic
Elucidate in Olipolistic terms, and with graphs, what is really happening. Shoud the US anti-trust laws be invoked in industries like this.
The FCC has hired you as a consultant to design an auction to sell wireless spectrum rights. The FCC indicates that its goal of using auctions to sell these spectrum rights is to generate revenue.
Assume you fail to hedge, but the British ale seller decides to cut you a break and only pass through half of the pound appreciation.
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