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Assume that two firms sell differentiated products and face the following demand curves: = 15 − + 0.5 and = 15 − + 0.5 (Assume that the marginal cost is zero)
1. Derive the best response function for each firm. Do these indicate that prices are strategic substitutes or strategic complements?
2. What is the equilibrium set of prices in this market? What profits are earned at those prices?
A large induced-draft fan is needed for an upgraded industrial process. The motor to drive this fan is rated at 100 horsepower, and the motor will operate at full load for 8,760 hours per year.
Country A and Country B both have the production function: Does this production function have constant returns to scale? Explain. Suppose that both countries start off with a capital stock per worker of 1. What are the levels of income per worker an..
Assume you have decided to enrol in a bartending academy and while taking classes you have learned that even though customers order a rum and coke they can never tell the difference if you instead use Pepsi. You have also learned that when people ord..
Although the web has brought many changes to the delivery of customer service some are good changes but not all are. What are the advantages and disadvantages of a web based customer service approach?
Economic theory would suggest that the profitability of an industry would be
no less than 1000 words excluding the title page bibliography and appendices.question 1. a study into the key
The traditional management style of hospitals has been hierarchical and internally focused. What are three important challenges that face hospitals to accommodate new payer and consumer expectations?
Why is the continuing income inequality in the US a problem for the economy? Does it matter that so many people own such a low percentage of total wealth in this country?
On April 1, 2015, a company loans one of its suppliers $53,000 and accepts a 30-month, 12% note receivable. Calculate the amount of interest revenue the company will recognize in 2015, 2016, and 2017. (Do not round intermediate calculations. Round yo..
In theory with flexible exchange rates should allow countries to conduct ________ monetary and fiscal policies, exchange rates, but paradoxically the experience of the relatively flexible exchange rates of the 1970's suggests that such policies cause..
A firm that is considering one independent project should accept it if
The consumption of both x1 also x2. Label income also substitution effects for both goods. Illustrate what is the implication of product differentiation in defining market structure.
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