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Suppose that market demand for golf balls is described by Q = 90 - 3P, where Q is measured in kilos of balls. There are two firms that supply the market. Each firm has a constant unit cost of 10.
Suppose the firms compete in quantities. How much does each firm sell in a Cournot equilibrium? What is the market price and what are the firms' profits?
Suppose the firms compete in price. How much does each firm sell in a Bertrand equilibrium? What is market price and what are the firms' profits?
A 10-year zero coupon $100 face value bond has yield of 6%. Through series of unfortunate circumstance, expected inflation rises from 2% to 3%. Assuming the nominal yield rises by an amount equal to the rise in expected inflation, compute the change ..
Assuming that expectation theory is the correct theory of the term structure, Calculate the interest rates in the term structure for maturities of one to five years, and plot the resulting yield curves for the following paths of one-year interest ra..
What market structure would this industry fall under? What are the names of other firms in this industry? Is it monopolistic competition, oligopoly, monopoly, or perfect competition?
When all of the available factors of production are being efficiently used,
What is one important characteristic of perfect competition? What is the expected slope of the demand curve for a firm in perfect competition? What characteristic of a monopoly will most likely ensure economic profit in the long run? What is the main..
Does the law of diminishing marginal returns apply to this firm's production process. If so, explain why and find the quantity of labor at which diminishing marginal returns.
How an airline executive might use tourism economics relating to passengers load factors, ticket prices discounts, frequent flyers programs, joint fares, flight frequencies.
What would happen to the position of the demand curve for dental services if patients had to wait even longer for an appointment with a dentist.
Assume the operations manager at the company you own prefers to put in low effort rather than high effort. In order the manager to exert high effort, his expected financial gain must be at least $60,000 higher than if he puts in low effort. How would..
You work for a hotel chain that is considering expanding into international markets and you are looking for the right person to help oversee that process. You identify a top employee at another firm who seems to have exactly the skill set needed to h..
Mrs. Siegal has two alternative activities to help relieve her backache. In the first, she can visit a physiotherapist. The total time for a physiotherapist visit, including travel and waiting, is two hours. Mrs. Siegal earns a wage of $20 an hour. I..
If a monopolist lowers its price and its demand is inelastic, then its. Now, assume there is a frost in Florida that destroys part of the orange crop. What happens to the market for oranges in this case? Which of the following statement about the rel..
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