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A city has two newspapers. Demand for either paper depends on its own price and the price of its rival. Demand functions for paper A & B respectively, measured in tens of thousands of subscriptions are
21 - 2PA + PB and 21 + PA - 2PB
The marginal cost of printing and distributing an extra paper just equals the extra advertising revenue one gets from another reader, so each paper treats Marginal costs as zero. Each paper maximizes its revenue assuming that the other's price is independent of its own choice of price. If the paper enter a joint operating agreement where they set prices to maximize total revenue, by how much will newspaper prices rise?
Explain the importance of Managerial economics Managerial economics bridges the gap among 'theoria' and 'pracis'. The tenets of managerial economics have been derived from quan
firms both in monopolistic and perfect competition tend to make normal profits but why do they criticize only monopolistic competition
A cut in price from Br 1.50 to Br 1.20 leads demand for a product rise by 10% What would the price elastic of demand before this product ? interpret the result by identifying the t
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Bain''s limit pricing theory advantages and disadvantages
what is market
Singapore Airlines is facing the possibility of a new competitor " Qantas " to enter the Singaporean market, especially in premium market, Singapore Airlines is dominant on the ma
d/f b/w MRTS and MRS
Q. What is the economic role of government? What are the roles? Meaning: economic role is the role played by the government in uplifting the economy. The important roles: 1.
Objective of Fiscal Policy As an instrument of macroeconomic policy, the goals of fiscal policy are likely to be different in different countries and in the same country in dif
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