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Suppose firm A is deciding whether to build a small or a large factory in an area where it currently controls the market. After firm A builds its factory, firm B faces a choice of whether to enter the market or not. If firm A builds a small factory, the payoffs are (4,4) and (12,0) if firm B decides to enter or not enter, respectively (profits are in millions of dollars, with the first number for firm A and second number for firm B). If firm A builds a large factory, the payoffs are (-2,-2) and (5,0). Draw a payoff tree and use backwards induction to solve for the Nash equilibrium of this game.
Your assignment is to discuss the pros and cons of saggy pants as well as the idea of placing a fine on people who do "sag" their pants. Do you agree or disagree and why?
Write the system in a full 6 by 6 matrix form and find the equilibrium prices and quantities.
Think about a noncompetitive market in which you participate regularly. Explain which characteristic(s) of competitive markets your market does not meet.
Should the Americans make the adjustments to fit into the Korean culture, or would it be appropriate to also teach the Koreans
A local internet provider advertises its no-time-limit service with a one-year subscription of $20 per month, two years at $11/month.
According to the Solow growth theory that we have studied, how would each of the following events affect per capita consumption in the long-run. Illustrate graphically and explain.
Read the WSJ article on the attempted monopolization of the plastic clothes hanger market in this week's notes.
A can manufacturing company produces and sells three different types of cans:Versions X, Y, and Z. A high-level, simplified profit/loss statement for the company is provided here. Corporate overhead(rent, general and administrative expense,etc.) i..
The initial current in the circuit is 4.7 amps and after a very long time the charge in capacitor is 21 micro-coulombs. What is the value of the second resistor
Keynesian economists argue that deficit spending promotes economic growth because it stimulates aggregate demand in the economy. Monetary economists argue that the benefits of deficit spending are offset by the crowding out of private investment. Gra..
Both industrial unions and craft unions attempt to raise their members' wages, but each goes about it differently. Explain the diffeence in approaches and describe the impact these differences have on excess quantity of labor supplied.
Describe the four types of unemployment. How do the four types differ in their effects on the economy and on the unemployed and what is meant by industrial policy? Discuss the strengths and weaknesses of an industrial policy
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