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You are the manager of copies are us. The only copy store in town, the carbon copy, recently got bids on adding a colour copier. You must decide whether to obtain a colour copier, but you can base decision on what your rival does. If your rival adds a colour copier and you don't you expect your profits to fall by $1,000 per week, However, if you both do the same thing (add colour copies or not), you each expect profits to stay at their current level. Show the extensive form of this game, and find the Nash equilibrium (or equilibrium). Is there a sub-game perfect equilibrium?
If the US population is growing at .88% per year, while GDP is growing at 2.5% per year, and if these growth rates remain constant for the next five years, what will be the population and GDP levels in five years? Please show your work.
You have been hired as a plant manager for a firm that produces widgets (Q) in Angola, Indiana. Widget production requires machine time (K) and labor time (L).
Answer whether the following statements are true or false, explaining your answer in each case.
Find the following: First solve this problem using an Excel spreadsheet approach and then do the problem using the optimization procedure; compare the answers for the two methods.
What price and quantity will the monopolist produce at if marginal cost is a constant$4 ? Compute the dead weight loss from having the monopolist produce, rather than the perfect competitor
Compute the level of GDP per capita in each country measured in local currency. Compute the marker exchange rate between the currencies of two countries.
Which of the followings tends to occur during recessions Cyclical unemployment tends to fall The stock markets tends to surge (experience a rapid rise in prices) Interest rates tend to fall Gross Domestic Product rises Consumer ..
Each of the following headlines describes an event that will have an effect on desired aggregate expenditure
Japan has traditionally had an employment system characterized by a "lifetime" employment relationship between employer and employee and salaries that are based on length of service with the employer-starting low
Use the aggregate demand-aggregate supply model to illustrate graphically the short-run and long-run impact of this decline on output and prices.
Suppose that yi receives $ 60 per day as interest on inheritance and her wage is $25 per hour, and she can work a maximum of 16 hours per day at her job. draw her daily budget constraint.
Illustrate and explain the interaction of households, businesses, government and global markets in the circular flow of economic activity.
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