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Suppose that inverse demand is given by D(Q) = 56 − 2Q, Q = q1 + q2 and the cost function is TC(qi ) = 20qi + f (a) Find the limit output for fixed costs ( f ) equal to 50, 32, 18, and 2. (b) What is the SPNE for the entry game with the following timing: in the first-stage firm 1 can commit to its output; in the second stage firm 2 can enter and choose its output for fixed costs equal to 50, 32, 18, and 2?
How do global advertising campaigns benefit the company - what are the global advertising strategies of this company? How effective are they?
Arian is about to borrow $2350 from his uncle. He has an option to repay the loan at the end of year 5 with 10.75% simple interest per year or with 5% interest per year, compounded annually. What is the difference of the total interest paid over 5 ye..
Consider a market where demand is d:p=24-Q and supply is s:p=2+Q. impose a specific tax t= $2 on each unit sold in the above market.
What will be the CS, PS, tax revenues and deadweight loss? Suppose the government increases the tax to $4 per unit. What will be the new CS, PS, tax revenues and deadweight loss?
When companies expand into the international arena, they do so either because their home market has matured or because they see real opportunities in the foreign market. Discuss which kinds of international strategies are most appropriate for compani..
Describe the nature oft eh incentive conflict between VCs and the managers, identifying the principal and the agent.
What is the most conventional stance regarding the use of absolute value in the definition of Own-price elasticity-Cross-price elasticity
Assume that wages and prices are completely and immediately flexible. Assume that oil prices increase in the United States.
Suppose that the government places a ceiling on the price of a medical drug below the equilibrium price. Explain why there is a shortage of the medical drug at the new ceiling price.
The market for authentic poutine in Vancouver is controlled by two shops, PierrePoutine (i = P) and Mean Poutine (i = M). The market demand is given by p = 12−q, where p is the price, and q is aggregate output. Both shops produce at constant marginal..
The labor market for NBA players is perfectly competitive. The Labor Supply curve is Q= -20+3w. The marginal expenditure curve is ME= (2Q+20)/3. The Labor Demand curve is Q=125-2w. The Marginal Curve is MR= (125-2Q)/2. Both the players and owners do ..
q.complete the international trade simulation.list at least one benefit also one limitation of international trade you
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