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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?
Explain each of the following using supply and demand diagrams, With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.
Absalom Motors's 15% coupon rate, semiannual payment, $1,000 par value bonds that mature in 30 years are callable 4 years from now at a price of $750. The bonds sell at a price of $1,300, and the yield curve is flat. Assuming that interest rates in t..
Explain when a researcher is trying to estimate the causal effect of X on Y, and finds that the R^2 of her bivariate regression model is around 0.04.
Participate in a discussion with your classmates regarding how monetary policies affect our lives. Utilizing the knowledge that you have accumulated during our course, and by reading or watching the current news, determine the monetary policy issues ..
Firm S produces steel with a cost function cS(s,x) = s^2 + 10 − (12x − x^2), where s is units of steel and x is units of a pollutant that is a byproduct of steel production. Another firm F produces fish with a cost function cF(f,x)=3f^2+fx,where f is..
What is the profit-maximizing output of the monopolist shown below? What is the monopolist’s markup over the competitive price? Levi’s has an advertising slogan: “Quality never goes out of style.” Consumers can buy other kinds of jeans, including off..
When the general price level rises and firms decide not to change their prices in the short run, this can be attributed to:
q.for the questions below write an explanation of the short-run effect including the determinant of ad or as that is
suppose that the other firm holds its rate of output constant, solve for the optimal output of each firm. What is the total profits of the two firms.
Indicate whether each of the following represents a credit or debit on the U.S. current account.
What labor standards regarding safety , working conditions, overtime, and the like should U.S. companies hold foreign factories to: those prevailing in that country or those prevailing in the U.S? why?
In own words how is an article about the decline in Yuan on the stock market and an article about the US either raising or not raising interest rates related to Finance?
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