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In the initial Bertrand equilibrium, two firms with differentiated products charge the same equilibrium prices. A consumer testing agency praises the product of one firm, causing its demand curve to shift to the right as new customers start buying the product. (The demand curve of the other product is not substantially affected.) Use a graph to illustrate how this new information affects the Bertrand equilibrium. What happens to the equilibrium prices of the two firms?
An engineer deposits $300 per month into a savings account thatpays interest at a rate of 6% per year, compounded semiannually. How much will be in theaccount at the end of 15 years
The author is trying to assess whether system membership affects patient outcomes broadly defined. The author argues for using only acute myocardial infarction patients to look at this question. What is the justification for this? What economet..
Draw a graph that shows her change in consumer surplus.
If the government operates on a balanced budget before interest payments are taken into account, at what rate must GDP grow in order for the debt-GDP ratio to remain unchanged?
Contingent fees in effect give lawyers partial property rights (typically a one third share) in plaintiffs' legal claims. What economic function might such contracts serve?
One could view the United States as a currency union of 50 states. Compare and contrast the Eurozone and the United States in terms of the optimum currency area (OCA) criteria.
A tax is placed on x so that x now costs Max $2 while his income and the price of y stay the same. How much of good x does he now demand? Would Max be as well off as he was before the tax if when the tax was imposed, his income rose by an amount eq..
Emily buys an air conditioner that costs $700. Because the air in her home is cleaner, its use saves her $250 in curtain cleaning costs over the lifetime of the air conditioner. In money terms, what is the opportunity cost of the air conditioner?
Which of the following can be considered a competitive market?
What is the elasticity of demand for broadband access capacity for firms? Is demand at the current price inelastic?
Describe the rollforward process. Under what conditions should rollforward be used?
Derive the trade balance equation (19.34) from the capital market clearing equation (19.26).
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