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Suppose firm 1 and firm 2 each produce the same product and face a market demand curve described by
Q= 5000 - 200P. Firm 1 has a unit cost of production c1 equal to 6 whereas firm 2 has a higher unit cost of production c2 equal to 10
a. what is the Bertand-Nash equilibrium outcome?
b. what are the profits of each firm?
c. Is this outcome efficient?
In Role of Government in Regulating Business Ethics and "Business Ethics: The Law of Rules, the authors seem to argue that overreaching laws and regulations do not facilitate ethical behavior, and indeed might have the opposite effect. Using these ar..
A project has cash flows of -$12,000 in Year 1, +$5000 in Years 2 and 3, -$2000 in Year 4, and +$6000 in Years 5 and 6. Use an interest rate of 12%. Find the interest rate that gives a net present value of zero.
Discuss the pros and cons of annuities when compared with other financial instruments and whether they provide a better investment opportunity for some people.
Illustrate what is the total cost of finding a new plot of grass and getting y units of grass from it.
Suppose that the government is deciding how wide to make a public road that services one resident named Bob. Bob’s willingness to pay for each metre of road is described by 20 – 2Q. Graph Bob’s willingness to pay (demand) curve. Suppose that the marg..
It has been proposed that a government agency be charged with the responsibility for determining the amount of pollution
That term would be most closely associated with the latest also better goods also services also latest also better ways of producing
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What is the social optimum? What specific tax per unit of output of gunk results in the social optimum.
Which of the following institutions is NOT part of the shadow banking system? An investment bank is susceptible to events similar to bank runs, and may collapse if: The main difference between the financial crisis of 2008 in the United States and the..
If a price ceiling is not binding, then
A nation's capital goods wear out over time, so a portion of its capital goods become unusable every year. Last year, its residents decided to produce no capital goods. Will the nation's economic growth rate for the current year be negative, zero, or..
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