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Consider a homogeneoous-good Cournot oligopoly with 2 identical firms with C(q) = 0 and P(Q) = e-Q; for Q >0:
a) Find the Stackelberg equilibrium outputs, price and profits (with firm 1 as the leader).
b) Compare the Stackelberg and the Cournot equilibria in terms of equilibrium outputs, price and profits. Are the comparisons intuitively expected?
Find the property tax rate from the following information. Knoxville County needs $5,875,000 to balance the county budget. The total assessed value of all the property in the county is $60,000,000.
Which of following is true of monopoly and not of perfect competition?
A student taking economics, statistics, and finance has decided to spend 9 hours per week studying. The objective is to maximize the average grade, which means maximizing the total grade in the three courses. How should the student allocate her time?..
Healthcare system as a "third-party payer" system: When you receive healthcare in the U.S. generally you are not paying for it; you are paying for insurance, and your insurance pays for the healthcare. Hence, the payment is being made by a third part..
Over the next three years, a firm is expected to earn an economic profit of $900,000 in the first year, $800,000 in the second year, and $700,000 in the third year. After the end of the third year, the firm goes out of business. If the risk-adjusted ..
Assume a firm has production technology given by f(L,K) = L^1/3 K^1/3. Assume pK = 1 = pL and compute the firm’s short-run and long-run cost functions.
Suppose that Poland had exports of $100 billion in 2014 and imports of $150 billion. What were their net capitals flows in that year? Give two examples of transactions that are part of the net capital flows of Poland, and indicate whether they enter ..
An economy at the top of a stock market bubbles will impact consumers by encouraging A. greater consumption of luxury goods and less saving. B. more work and delaying retirement. C. greater consumption of luxury goods and greater saving. D. more inve..
A monopolist faces a market A demand curve given by: QA = 70 – P and market B demand curve given by: QB = 50 – 0.5P. This monopolist pursues a separate monopoly pricing policy in each market. Assume arbitrage between the two markets can be prevented.
Find an example of an organization that is incorporating corporate social responsibility (CSR) into its operations and overall management. Provide a brief summary regarding what the organization is currently doing. In your opinion, do sport managers,..
Which of the following is an obstacle to economic growth? According to the text, as compared to rich countries, most of the poor countries do not fare well because:
Your firm spent $100 million developing a new drug. It has now been approved for sale, and each pill costs $1 to manufacture. Your market research suggests that the price elasticity of demand in the general public is -1.1. What price do you charge th..
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