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The market demand is p=50-Q. There are two firms who behave as Cournot duopolists. For simplicity assume the marginal cost is zero
A) solve for the equilibrium price and output
B) compare results with monopoly price and output
Read the case "Federal Indebtedness is Much Higher Than the Net Public Debt" on page 313 and discuss the following issue: How could the federal government try to reduce its entitlement indebtedness (the difference between entitlement program spending..
In January of 2007 online movie rental service Netflix introduced a new feature to allow customers to watch movies and television series on their personal computers. Netflix competed with many video rental retailers, which added online rental service..
Arnett is appearing for a new Web portal to utilize to access information which interests him on Internet.
which of the 3 determinants of macro performance (internal market forces, external shocks, and policy levers) would you consider the most important in terms of gauging the success/failure.
Erika and Kitty, who are twins, just received $20,000 each for their 27th birthdays. They both have aspirations to become millionaires. Each plans to make a $5,000 annual contribution to her "early retirement fund" on her birthday, beginning a year f..
Suppose that inverse demand is given by p(Q) = a-bQ, where Q is total quantity supplied in the market. There are two firms in the market, each with a cost function of c(q) = cq. What is the profit function of each firm? Compare the output and price t..
As vice president of sales for a rapidly growing company, you are grappling with the question of expanding the size of your direct sales force (from its current level of 60 national salespeople). How would you estimate the additional dollar cost of e..
In the neoclassical growth theory
The Analytical Hierarchy Process is being employed in a project selection decision. One major criteria, cost, receives a weighting value of 40%, which is split into short-term (50%), intermediate term (30%), and long-term (20%). Which of these statem..
The reason economists use the midpoint method to compute elasticity is that:
Evaluate the relative importance of economies of scale and comparative advantage in causing the following.
Fiscal policy is most effective in controlling inflation when the economy operates in the _____ region of the aggregate supply curve.
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