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Suppose identical price setting duopoly firms have constant marginal costs of $50 per unit and no fixed costs. Consumers view the firms products as perfect substitutes. The market demand is Q=150-p
In Bertrand equilibrium firm 1s price is:
and firm 2's price is:
Discuss industry concentration, demand and market conditions and the pricing behavior of Kodak in the 1990's. Do you think the industry environment is significantly different today.
Public policy toward monopolies Suppose that the government is concerned that an electric utility company is taking advantage of consumers with unfair pricing policies. The government views electricity as a public good that is likely to be produced i..
______The term used to refer to the raw materials, components, completed or partially completed products, and pieces of equipment a firm uses is
What are definitions for Social Democracy, Communism, Mercantilism, Institution, Informal Institution, Formal Institution?
A small consulting firm is only interested in hiring College graduates (denoted by S), but it does not know how many it should hire in order to be profit maximizing. Assume there is a competitive wage of $20 per hour and the production function is F(..
It is often said that Animal Farm is a book describing why the economic system of communism failed in a story tale manner. However, after reading it, it seems to be a book that criticizes the totalitarian state that Stalin (Napoleon), had created aft..
Suppose the Canadian economy, on a fixed exchange rate, has a real growth rate of 2% and is in equilibrium with an inflation rate of 10% and a risk premium of 1%. Suppose changes in the U.S. cause its real rate of interest to increase from 3% to 4% a..
1). List three businesses that can exist today, because of the World Wide Web that could not have existed before the advent of this technological communication system. 2). How has the World Wide Web supported the establishment and functioning of th..
Stock R has a beta of 1.0, Stock S has a beta of 0.55, the expected rate of return on an average stock is 13%, and the risk-free rate is 7%. By how much does the required return on the riskier stock exceed the required return on the riskier stock exc..
q. as ceo of firm a you and your management team face the decision of whether to undertake a 200 million rampd effort
If the tax multiplier is -1.5 and a $200 billion tax increase is implemented, what is the change in GDP, holding everything else constant?
a if you deposit 10000 in a bank account that pays 10 interest annually how much will be in your account after 5
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