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Consider a monopoly who can do advertisement to inform and attract new customers (hence expands its potential demand). Let a denote the monopoly's expenditure on advertising. The market demand for the monopoly's product when it charges price p and invests a on advertising is D(p, a) = 120 - p +√a. The monopoly has constant marginal cost MC = 20.
Three factors make analysts more optimistic: Companies are cutting production, weekly egg-set numbers are declining (egg sets are fertile eggs placed in incubators), and prices are responding positively to the decreasing supply. The ..
a the rising stock market implies an increase in wealth at least as measured on paper. if we assume that some of this
(b) The game also has a mixed strategy Nash equilibrium. Find the equilibrium probability that each country will act tough as a function of k. (c) Does the equilibrium probability that a country will act tough rise, fall, or remain constant as k ri..
What is meant by the Golden Rule and use the Mankiw Golden Rule graph to discuss whether this increase in the US s would have any effect on the GR variables of interest.
Ralph came to you, his lawyer, for advice and redress. He tells you his story and asks what he can do. You patiently explain to Ralph there are two theories of sexual harassment to pursue. What are they? And what are the elements of each theory..
What is the firm's cost function when the cost of pollution certificates is included? What is the firm's marginal cost function when the cost of pollution certificates is included? Derive the firm's supply function.
What is the rollback equilibrium to this game?
Economists classify production functions as possessing constant, decreasing or increasing returns to scale. Yet, from a cause-and-effect point of view, it is not readily apparent why decreasing returns to scale should ever exist. That is, if we du..
What roles do physical capital, human capital, technology, and natural resources play in influencing long run economic growth of aggregate output per capita?
Sketch a supply and demand graph to explain this change. Be sure to label your graph and clearly indicate the change of the curve.
Illustrate what do each of the following seek if they pursue their own self interest: consumers, resource owners, and business firms.
In the year following the base year, the survey takers determine that pizzas have risen to $11 each, apartment rent is $700, gasoline and maintenance have risen to $120, and phone service has dropped in price to $40. a) Find the CPI in the subsequ..
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