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Let the inverse demand curve be p(q) = a − bq. Suppose there are two firms, with constant marginal cost equal to C.
Let the two firms be located at 0 and 1 on the unit interval. There are n consumers located uniformly along the interval, each with a reservation value of V . They incur transportation costs of t per unit of distance traveled from their location to the a store.
1) If the firms are both located at 1/2, what are their equilibrium strategies and what is the equilibrium outcome?
write down expression for marginal revenue. choose the quantity and the price to maximize profit, assuming firm can only charge one price.
Suppose that the government adopts a Haig-Simons comprehensive income definition. Will this make employers more likely or less likely to offer employer-provided pension plans or health insurance coverage? Why?
Your business provides CDs for free to customers who pay for the English courses that you offer in Mexico. You consider the idea of mass production of the CDs in the U.S., so that you can sell (export) them to distributors or to retail stores through..
An annuity runs for 25 years as follows: at the end of each of the - . first ten years 500 is paid, and then at the end of each of the last 15 years 300 is paid. If i= .08, find the value of this annuity three years before the first payment.
Countries seeking to adopt the euro as their currency must meet certain criteria, including the requirements to keep their government budget deficit equal to 3% or less of GDP, and to hold government indebtedness to less than 60% of GDP. Discuss why ..
A new online patient diagnostics system for surgeons will cost $200,000 to install, $5,000 annually to maintain and have an expected life of 5 years. The revenue is estimated to be $60,000 per year. The MARR is 10%. Conduct sensitivity analysis based..
Calculate the coefficient of price elasticity (midpoints approach) for Goldsboro's supply. What was Diane's economic profit.
Discuss and explain the following questions using knowledge about the dynamics of Aggregate Demand and Aggregate Supply Model. What is the cause of the 2007-09 Great recession? What happened to aggregate demand and aggregate supply model during this ..
The demand for 1,000 units of a part to be used at a uniform rate throughout the year may be met by manufacturing. The part can be produced at the rate of 3 per hour in a department that works 1,880 hours per year. The set-up cost per lot is estimate..
Suppose a country "X" is facing recession. What fiscal and monetary policy will the central bank and the government use to stabilize the economy!! What tools do the central bank and the government have to impact economy!!
You are considering two alternative plant layouts, A1 and A2, to improve its current layout. The cash flows are shown below. The first costs represent the expenses of rearranging the current layout to the alternative new layout and the annual savings..
Elucidate the likely impact of this event on the market for gasoline and the market for small cars.
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