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Elucidate the importance of credibility when evaluating a firm's potential moves. For example, if firm two is the "responder" in a Stackelberg game, it may threaten to flood the market if firm one (the "leader") does not set a low quantity (say, ½ of the monopoly quantity). Should firm one consider this threat to be credible? How might the answer change if firms are playing this "game" repeatedly over many periods? What are some strategies that firm two can use to gain credibility?
Explain the difference between Macroeconomics and Microeconomics. Also explain how economics is used as a social science and as a policy tool.
If one draws MC curves pre and post innovation as well as the Marginal Revenue line for a monopoly and the MR in a competitive situation.
Calculate the trade balance among the U.S. also China for the period. Analysis by using appropriate examples.
Illustrate what are factors that influence supply of loanable funds and the factors that influence demand for loanble funds.
the demand for electricity and the concept that nuclear is cleaner than coal and who the special interest groups are that's involved
Explain is it irrational for an individual to take the time to be completely rational in economic decision making.
on average, Japan's real every capita output grew at a rate of 3 percent every year among 1973 also 1993. Illustrate what would Japan's output every capita have been at the end of 1993.
What must the CFO expect about the Australian Dollar/US$ exchange rate 1 year from now if she chooses to invest in the US $ CD's instead of the Australian CD's.
They found that getting larger was painful it involved a lot of new administrative infrastructure to get everything organized
Suppose that the demand for healthcare services is perfectly inelastic while the supply curve is upward sloping. Analyze the impact.
Assume that during the last month of the tenth year of ownership, the property in Problem 2 is sold for 1,500,000. Assume also that the seller incurs transaction costs equalling 6 % of the sales price.
Write out the payoff matrix for this game, and then find its Nash equilibrium.
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