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Followup questions to previous assignment where cable market is described as q(p) = 180 - 2pAssume now that two exactly similar cable operators compete. They both start by deploying network everywhere, so they both incur the same large fixed cost and their networks are ready at the same time. The service they provide is cable and they do so with the same quality and thus assume that consumers don't really care which operator provides them service as long as the have service once they want to buy.1) What equilibrium prices will we see in the market when both operators compete on prices? Why? 2) Now let's assume that these network operators engage in a Cournot competition where they compete on quantity. When they compete in quantity, they charge the same price but choose the number of households for which they activate service. What are the profits of the two operators in terms of the quantities (q1 and q2) provided by the two operators? (Hint: think about what price would lead to an overall demand of q1 + q2.) 3) Compute the monthly price at which cable will be provided when the firms engage in Cournot competition( both companies try to choose the optimal output to maximize their profit) Required minimum-1 page
Both industrial unions and craft unions attempt to raise their members' wages, but each goes about it differently. Explain the diffeence in approaches and describe the impact these differences have on excess quantity of labor supplied.
Arkansas has one of the highest numbers of STLs in the United States. In an effort to recoup the costs of dealing with the meth epidemic, twenty countries in Arkansas filed a suit in a federal district court against Pfizer, Inc., and other compani..
Suppose A and B choose the amount they spend on the school independently. What is the Nash equilibrium level of the school's quality in Little Society?
The demand curve for 48" Sony flat screen televisions is likely to move to the right when consumer incomes increase.
Assuming you could not get the Pink ticket for free what is your (net) opportunity cost of your seeing Lady Gaga?
Describe the major characteristics of monopolistic competition and oligopoly.
Should price stability be the goal of monetary policy Explain your responses. Compare and contrast the impact of an unexpected shift to a more expansionary monetary policy under rational and adaptive expectations. Are the implications of the two t..
Use the inverse matrix method to solve for equilibrium level of national income and the equlibrium rate of interest in this economy.
At a management luncheon, two managers were overheard arguing about the following statement: "A manager should never hire another worker if the new person causes diminishing returns." Is this statment correct
Describe how capital and labor affect the production function for both a toy manufacturer and a retailer during the Christmas retail season.
Determine the total tax collected by the government on widgets. How much of this tax is paid by consumers? by producers? Show all calculations and explain your work.
can country A change the outcome of the game by burning the bridge they are crossing to invade and committing its troops to fight? expand the game tree to show this option for county A and find the new Nash equilibrium. Explain
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