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Suppose two firms are engaged in Cournot competition. The firms are identical, produce homogeneous products and have marginal costs = $0 and no fixed cost.
The firms face the following inverse demand curve:
p = 300 - (q1 + q2). The best response functions for the two firms are as follows:
q1 = 150 - 0.5 * q2
q2 = 150 - 0.5 * q1
What is the total quantity produced in equilibrium?
Which of the following statements correctly reflects the developments in the U.S. automobile industry following an interest rate decrease by the Federal Reserve?
Over the last 30 years, management accountants have made the transition from a “bean counter” to a “strategic partner.” The advent of technology has facilitated automation and recordkeeping. As such, the management accountant has been free to develop..
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What are some of the situations that can give rise to monopolies? Research the industrial revolution and the Robber Barons (such as Carnegie and Rockefeller), of that era and comment on how they were able to create their monopolies. How are we able t..
Draw the function Y = F(K, L¯) in terms of Y and K, for some fixed L. On the same graph, plot the cost function for renting a certain amount of capital at a rental price of R, i.e. RK. For a profit maximizing firm, illustrate graphically how much cap..
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Sarah Jarala recently purchased an asset that she intends to use for business purposes in her small Iceland Tourism business.
What would be price and profit levels would prevail based on the assumption that a new entry into the local market results in competitive market pricing.
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Show graphically and explain how increasing the depreciation rate affects the bundle of capital and labor that a firm chooses for production.
For a region, you are given the number of deaths, the number of deathes related to alcohol, the number of deaths related to painkiller opiates and the averge mid-year population. What is the equation to calculate the crude death rate for the region? ..
Suppose that the country of aquiline has an inflation rate of about 2% per year and a real growth rate of about 3 % per year. Suppose also that it has nomial gdp of about 400 billion units of currency and current nomial national debt of 200 billion u..
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