Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Suppose instead that the firms in Problem 9 compete by setting quantities rather than prices. All other facts are the same. It is possible to rewrite the original demand equations as P1 = [150 - (2/3)Q 2] - (4/3)Q1 and P2 = [150 - (2/3)Q1] - (4/3)Q 2. In words, increases in the competitor's output lowers the intercept of the firm's demand curve.
a. Set MR1 = MC to confirm that firm 1's optimal quantity depends on Q2 according to Q1 = 45 - .25Q2. Explain why an increase in one firm's output tends to deter production by the other.
b. In equilibrium, the firms set identical quantities: Q1 = Q2. Find the firms' equilibrium quantities, prices, and profits.
c. Compare the firms' profits under quantity competition and price competition. Provide an intuitive explanation for why price competition is more intense (i.e., leads to lower equilibrium profits).
The advent of the one man bus involved more capital equipment: an automatically operated coin box and door control device - to name two of the capital goods that replaced the conductor."
What government officials increase the price of parking ticket from $40 to $50; they are surprised that their revenue actually falls. What happened?
Assume these customers live in Cuba and get a ration of 50 units of Q each month. What is the marginal willingness to pay at this level of consumption for each customers ?
How will the unemployment rate change as a result? How will the growth in GDP change as a result?
Discuss completely all forward exchange transactions that take place when the contracts are made. Describe what actually takes place three months later.
You deposit today $1500 in an account that pays 1.7% per year. For the next few years you will keep making deposits 8.4% larger than the previous one. What will be the balance on the account after 6 deposits?
Once it is describe to be elastic or inelastic, explain how do you come to that conclusion.
Production quota: In many cities, the amount of licenses to operate taxis is limited. For the purposes of this problem, we can think this is a production limit (a maximum production level) of taxi rides set by government. Assume that this limit is lo..
you are the chairperson of the federal reserve the date is june 2009 and a recession is ahead. using the monetary tools
In 1929 and 1933, GDP measured in current prices fell from $96 billion to $48 billion. Over the same period, relevant price index fell from 100 to 75.
On a graph with on the horizontal axis and on the vertical axis, draw a typical indifference curve (it need not be exactly to scale, but it should accurately reflect whether there is a diminishing ). Indicate on your graph whether the indifference..
Assume that the United States is initially operating at its full-employment level of output and prices and wages are eventually flexible both upward and downward. Construct a long-run AD-AS model.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd