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Problem 1:
(i) Assuming a Cournot duopoly where the market demand is estimated as:
P = 100 - Q
The marginal cost is estimated to be constant at Rs. 10 for the two firms. Calculate the equilibrium price and output for each firm.
(ii) Based on (i), explain the incentives for collusion in the above market?
Probelm 2:
(i) Explain the different measures of market concentration.
(ii) Discuss the importance of competition on industrial efficiency.
Probelm 3:
(i) Explain the term ‘wage-cost spiral'.
(ii) Explain how business cycles affect economic growth.
(iii) Critically discuss the link between inflation and unemployment.
Scenario: A client comes to you for investment advice on his $500,000 winnings from the lottery. He has been offered the following options by three different financial institutions
Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4 a) Many are concerned
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Ask question different between Marginalism & incrementalism #Minimum 100 words accepted#
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You have an opportunity to invest in a new plant. The fixed costs are $100,000 per year. The marginal cost of production is $2 for a quantity up to 10,000 units per year. The margi
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