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Two firms, Soapy Inc. and Sudsies Inc., are the only producers of washing powder. If they both charge a market price of $5, Soapy will earn a profit of $1,000 will Sudsies will earn a profir of $800. If Soapy charges a price of $4 while Sudsies charges $5, Soapy will increase its profits to $1,500, while Sudsies incurs an economic loss of $500. If Sudsies charges a price of $4 while Soapy charges $5, Sudsies will increase its profits to $1200, while Soapy earns an economic loss of $300. If they both charge a price of $4, Soapy will earn a profit of $500 while Sudsies earns a profit of $300.
Describe the dominant strategy for each firm and the equilibrium. Explain why there is an incentive to collude
What impact can politics have on the viability of environmental issues? Can we put a price on clean air or water, on a landscape, or on the health of biota? Why is cost-benefit analysis important in analyzing environmental issues?
Suppose that the price of a pen is $5 and a notebook costs $7. You are told that his optimal consumption bundle contains 5 pens.
Can you please provide a real-world example of product (a good or service) which has either an external cost or external benefit associated with it and propose the government policy to adjust for the over- or underproduction of this product.
1.Flank defense: protecting a weak flack by erecting outposts 2.Contraction defense: giving up weaker territories and reassigning resources to stringer territories. what's the diffrence between Flank defense and Contraction defense?
Derive an expression for average total cost (ATC). At what quantity is ATC at its minimum (at what ATC level)? In your diagram, sketch ATC and confirm that it is U-shaped. [Hint: Calculate ATC when q=20 and q= 80.]
Evaluate various economic analysis models. Assess processes to measure equity in public policy analysis. Analyze practices of incorporating public advocacy in policymaking.
The problem belongs to Economics and it is explain about whether or not globalization benefits more the people of India or the Western and European countries which are outsourcing their work.
A new product will generate net revenues of $600,000 per year. What is the present worth of the revenue stream if the life is 6 years? 12 years
Draw an imaginary budget line (BL3) parallel to the new budget line (BL2) and make it cross the initial indifference curve (IC1) at the lowest income level. Show the income and substitution effect of the decrease in the consumption of tea as the p..
suppose that a new government is elected in eurnesia. the new government takes steps toward improving the court system
Describe how this is similar to a "contract" between management and labor. Do you believe this document adds value to a workplace, or does it create restrictions? Please explain.
Find the natural equilibrium fish population and the maximum sustainable yield
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