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Consider an industry with 2 firms, each having marginal cost equal to zero. The inverse demand function facing this industry is
P(Y) = 100–Y
where Y = y1 + y2
If firm 1 as follower and firm 2 behaves as leader, calculate the Stackelberg equilibrium output.
There have been significant discussions on the government's fiscal policy during the Great Recession. In particular, many did not like the government's actions in salvaging the auto industry in providing guaranteed loans to GM and Chrysler. What is y..
Our Discussion for this week will focus on prostitution and pornography. Please respond to the following questions/statements: Do you think pornography is harmful to American society? Do you think that pornography should be restricted in the United S..
Households and firms makes decisions about how much to consume and invest based on expectations about the future. How does government tax policy affect the decisions of households and firms from a general perspective? From your personal perspective? ..
q1. explain the essential distinctions among the stages-of-growth theory of development the structural change models of
According to the chief engineer at the Zodiac Company, Q = ALK , where Q is the output rate, L is the rate of labor input, and K is the rate of capital input. Statistical analysis indicates (regression analysis) that = 0:8 and = 0:3. The rm's owner c..
The owner of a business is considering investing $55,000 in new equipment. She estimates that the net cash flow will be $5,000 during the first year and will increase by $2,500 per year each year thereafter. Determine the annual capital recovery cost..
A group of vitamin manufacturers formed a cartel that lasted through most of the 1990's. State the starting and ending dates of the cartel. Just show the dates. More importantly, explain the effect that the cartel appears to have had on vitamin price..
Suppose the amount 207 is paid at the end of each of several equal periods and 0.059 is the interest rate per period, then at the end of these periods, the total amount paid is 951. Find the number of periods; due to uncertainty in the interest rate ..
You receive a credit card offer with terms of 7.3% interest. When you read the fine print, however, you see that the interest is not the annual percentage rate (APR), but the amount being charged every month. What is the effective interest rate?
From the scenario, assuming Katrina’s Candies is operating in the monopolistically competitive market structure and faces the following weekly demand and short-run cost functions: VC = 20Q+0.006665 Q2 with MC=20 + 0.01333Q and FC = $5,000 P = 50-0.01..
Suppose a firm has the following production technology: one work is required to operate on one machine (capital). More than one worker on the same machine will have a zero MPL. One worker operating on two or more machines will also have a zero MPK. I..
A firm manufactures widgets according to the production function Q = 8L1/4 K3/4, where Q is the number of skis made, K is the amount of capital, and L is the amount of labor employed. The firm is currently producing Q =400 using L = 50 and K = 50. Wh..
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