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Two firms produce identical, substitute goods. Market inverse demand is P=150-Q. Firm 1 has costs c(q1)=c1q1 and Firm 2 has costs c(q2)=c2q2. Find the Nash equilibrium in quantities (cournot competition) Prove the answer is a Nash equilibrium
Explain how much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 1 percent.
In order for a price-discrimination scheme to be effective at boosting profit, the seller must...
The long-run and short-run aggregate supply curves reflect fundamental differences between long-run and short-run macroeconomic analysis.
Suppose an economy uses gold as commodity money. Consider the market for gold with the following Demand for Gold as Money: GD;M = 80 – 1/4*V Demand for Gold for Nonmonetary use: GD;NM = 15 – 1/4*V Supply of gold: GS = 35 + 1/2*V where V is the price ..
Florida is considering construction of a flood control dike having a life span of 16 years. The investment require is $60,00 and annual maintenance costs of $5,000. The project will provide no benefits for the first two years but will save $24,000 pe..
What likely to be the effect of such restrictive monetary policy on the budget balance for the government and national debt if there are no other policy changes?
Common perceptions of slavery, especially in the United States, associate it with Africans. Was this the case prior to 1500? What was the racial component of slavery during this period? Examine the reasons for the differences in Portuguese involvemen..
If when the price of Product E decreases by 9%, this causes its quantity demanded to increase by 14% and the quantity demanded for Product F to increase by 12%, what is the cross-price elasticity of demand? What is the relationship between these good..
Suppose the consumer/worker values two things: a consumption good C and leisure: Suppose that there are 24 hours in a day and the consumer/worker has a utility function U (C; `) = C0:5`0:5: How is this problem different from the standard utility maxi..
Find recent evidence in the Wall Street Journal and other business publications on how companies are expanding the use of techniques described in the opening case to ubderstand and impact character behavior.
Identify the IP rights that are owned by an organization you currently or formerly have worked at. Next, explain which intellectual property appears the most difficult for a business owner to protect.
Assume that when an economy has a GDP of $500, Consumption is $550. The MPC is .75. Investment is 25. Begin the problem by setting up an Income/Consumption Schedule like the one on page 220 of your text. Set up only the first two columns (1) and (2)...
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