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The inverse demand function for the market is P = 120 - 2Q. There are two firms: A and B. The cost for firm A are C(qA) = 18qA, and the costs for firm B are C(qB) = 18qB. Assume that both firms choose quantities simultaneously.
(a) What is each firm's strategic variable and what is firm A's profit maximization problem as a function of each firm's strategic variable?
(b) What is each firm's best response function?
(c) How much does each firm produce at the Nash equilibrium?
(d) What is the market equilibrium price at the Nash equilibrium?
Each bundle that the consumer chooses, draw the indifference curve that goes through that bundle.
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What is the equation for the AS curve. What restrictions on the parameters do we need to ensure that AS curve has a positive and nite slope.
illustrate what additional effect follow this initial affect. what is the total affect of the tax cut on aggregate demand.
Is it a local, regional or national monopoly. What are some of the Barriers to Entry into this industry.
By increasing the money supply, the Federal Reserve can lower interest rates. This has a broad impact on the economy as mortgages, business loans, etc. can be obtained less expensively. Evaluate this view of the cause of recessions. Do you agree or d..
Would you agree with Karl Marx in saying that the Industrial Revolution and its capitalistic foundations negatively affected the working classes?
classical economists believe that. keynesian economists believe that. in dealing with the "great recession", the obama administration has largely followed the policies of ____________
Jane obtains utility W1/2 from wealth W. Jane has $100, but there is a 25% chance she will require surgery which costs $64. Sketch this utility function, indicating the values of Jane’s wealth if she does and if she does not need surgery. calculate t..
Elucidate would you suggest he buy more jeans and fewer t-shirts, or more t-shirts and fewer jeans.
Describe one weakness and one strength of the gold standard. Do you agree with Milton Friedman that any system of pegged exchange rates is not a satisfactory system for countries with independent political systems;
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