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Two identical firms face linear demand. Market demand is given by P=30-Q. Suppose both firms face zero marginal costs
a) Solve for Cournot equilibrium prices and outputs.
b) Solve for Stakelberg equilibrium prices and outputs.
c) Compare graphically consumer and producer surplus in Cournot and Stakelberg equilibria to perfect competition.
Imagine that every time you try to use your word-processing program while running Windows 7, your system slows down or freezes. Which Windows monitoring tool (Windows Task Manager, Resource Monitor, Performance Monitor, etc.)
What are some hazards associated with frontal activity and what type of fronts should we be the most concerned about?
You and your roommate are in a tough position. Both of you value a clean apartment at 100, and a dirty apartment at 30. The total cost of cleaning the apartment is 80. Layout this situation as a simultaneous move game. What is the equilibrium?
In a couple of paragraphs describe the practical use of optimization models and linear programming. Where do you think it is best applied? What industries would be beneficial to use optimization models?
The AMA has often been thought to behave like a trade union in restricting the supply of physicians in order to keep earnings high. What evidence is there that the AMA has acted this way? Essential of Health Economics Second Edition Diane M. Dewar
Let's also assume the current debt and equity values are at Target's optimal capital structure. 1. Based on market value estimates.
What is Equi-marginal principle? Why does it have to be true at interior optimum?
q1. a discount store has a special offer on dvd players and lowers their price from 150 to 100. assume the store
Suppose you are receiving a large shipment of Gizmos. The manufacturing standards provide that 1% of Gizmos turn out defective. You randomly select a sample of n = 25 from each lot and return the shipment if more than 2 are found defective. The proba..
When a firm engages in predatory pricing, what strategy does it use to drive its rivals out of business? Which of the following is true about price matching strategies? If a monopoly is forced to no longer produce where MR=MC but where P=MC what happ..
Two firms are located on the line and sell identical products. Consumers obtain K utility from consuming a product; assume that K is large enough that all consumers purchase from at least one of the firms despite the costs of transportation.
Now suppose as a result of a mandated increase in the minimum wage the wage increases to $80. What would be the implication of this change for this firm?
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