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Q1. Which of the following events would increase the price elasticity of demand for Chicago Bears tickets that sell at a price of $20?
Q2. Consider a model of Cournot competition as studied in class, with 2 firms also a linear inverse demand function P(Q) = a - Q (where Q = q1 + q2 is the total quantity produced by the 2 firms also a is a parameter). The firms have different marginal costs: c1 for Firm 1 also c2 for Firm 2.
(a) Find the Nash equilibrium.
(b) Suppose Firm 1's marginal cost is larger (c1 > c2). Which firm produces more in equilibrium? Elucidate how do the quantities produced in equilibrium change if Firm 1 improves its technology, leading to a lower c1 (while c2 is unchanged)?
(c) Find the total quantity produced also every firm's profit in equilibrium. Express Illustrate what happens to these when Firm 1 changes its technology as above.
What three factors determine whether two economies with separate fiscal and monetary authorities should form a currency union.
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Think of any financial innovation in the past ten years
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Relative to Tom, does Dick require more bananas, less bananas, or the same number of bananas to give away an apple.
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Advantages and disadvantages of a company using price discrimination in order to increase demand for its product or service.
Conclude which economic indicators the Federal Reserve should examine so it can better stabilize this particular economy.
Suppose the city eliminates its restrictions on books stores, allowing additional stores to enter the marketplace.
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