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(Assume firms compete over quantity) Two identical firms are serving a market in which the inverse demand function is given by P = 4002Q (P = 4002(q1 +q2)). The marginal costs of each firm are $40 per unit.
A) show and explain, how the Cournot quantities will change when cost of firm 1, c1 falls to 30? You may skip the calculations for this part, but you must provide the basic intuition.
(e) What is the Bertrand Nash equilibrium outcome? What is the price? What are each firms equilibrium quantities and total equilibrium quantities? What are the total profit and profit per firm?
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The demand equation for a certain type of product is given by the formula p=200e^(-0.1q) where p is the price in dollars and q is the quantity sold per month. Find the Revenue Function (in terms of quantity). Find the Marginal Revenue function (in te..
Report on an article from the Economist, identifying a market failure, defending or critiquing existing policies meant to deal with the market failure, and suggesting possible policy improvements using economic language and analytical tools
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A corporation's marginal tax rate is 34 %. An outlay of $35,000 is being considered for a new asset. Estimated annual receipts are $20,000 and annual disbursements are $9,000. The useful life of the asset is 5 years, and it has no salvage value. Assu..
“Economic profits result whenever only a few large competitors are active in a given market.” Discuss this statement using an example for illustration. Response is due not later than midnight October 23.
Illustrate what is equilibrium price of box. Is this long-run equilibrium price. Explain how many firms are in this industry when it is in long-run equilibrium.
Should the "Golden Age of Capitalism" be understood as a process of increasing globalization or de-globalization? Support your answer with a discussion of the rise and fall of the Bretton Woods system.
If the tax elasticity of labor supply were 0.19, by how much would the quantity of labor supplied increase among people in the top U.S. tax bracket if the highest marginal tax rate in the United States were reduced to the level of Bolivia?
What are the major causes of currency crises, and how can countries prevent these types of crises? What should be done if a crisis occurs? Use the interest rate parity model of exchange rate determination to explain what policies should be followed d..
In an interview with Daron Acemoglu, he says "the hot money which was floating through Turkey has stopped after FED's declaration that we are going to give much more attention on monetary policy". Basically I know some fundamental things like monetar..
Suppose me also my roommate started a bagel delivery service on campus. List some of our fixed costs also express why they are fixed.
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