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Suppose you are Coca-Cola and you are competing with Pepsi-Cola. Both of you would make more money if you advertised less - but you find yourself in a repeated prisoner's dilemma where you both are deciding to advertise. How would you prefer to deal with your competitor?
Be nice and don't advertise first.
If your competitor advertises do not escalate the situation, but do match their move
Wait to respond to your competitors actions.
Make sure your actions are clear to your competitor.
q1. suppose you want a lump sum payment of 100000 three years from now. rounded to full dollars how many current
Two power plants are currently emitting 8,000 tons of pollution each (for a total of 16,000 tons). Pollution reduction costs for Plant 1 are given by MCR 1 = 0.02 Q and for Plant 2 by MCR 2 = 0.03 Q , where Q represents the number of tons of pollutio..
Several questions in this problem set are based on the 8/19/12 Wall Street Journal article "Cartel Pushes Up Price of Rubber." This article is at the end of the module on Antitrust Policy. Stopping production of rubber-based products and diversifying..
Required all pharmaceutical firms to sell their drugs in a competitive market with no ability to patent their break.
If, in addition, currency deposit ratio(c) is 0.05 and excess reserve ratio (e) is 0.15, what is money multiplier. Explain why money multiplier differs from simple deposit multiplier.
In production theory, what distinguishes the short run from the long run? Can these periods be defined in terms of specific lengths of time? Why?
What are the controversies associated with white collar exemption changes to FLSA? What is the unions objections. Which is better the current FLSA law or the change?
If it is easy for a firm to get into or exit from a market, then a firm in that market will be able to earn positive economic profits. When economic profit is positive,
q1. in reference to financial perspective you have financial perspective customer perspective process prospective and
The use of money as a medium of exchange represents the mostimportant service that money renders. The money supply known as M1 includes all assets that are good storesof value. The Fed's reserve requirement ratio can reduce the monetary base. The Fed..
Which of the following best describes the aggregate demand and aggregate supply model?
one year later, the new class discovered that, at a price of 30 cents per can, the number of cans has fallen to 125 and two revenues are down. (A) Compute the price elasticity of demand in the first and second cases. (B) Explain what may have happ..
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