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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.
How would public choice economics explain why the airline industry was regulated by the CAB? What would you predict would happen to the equality of services (food, leg room, frequency of flights, etc.) offered by airlines after elimination of CAB reg..
Suppose we wanted to know what the effect of extending the maximum number of weeks of unemployment insurance (UI) benefits was on the duration of unemployment. A researcher from a university in California suggests that more weeks of UI benefits leads..
q1. what is true about using the least squares method of plotting an estimated regression line on a scatter diagram?q2.
The market marginal value curve for water (measured in thousands of gallons) is MB=220-.5Q, where MB is the marginal value of water, and Q is thousands of gallons of water each period. The marginal cost of providing the water (including treatment, pu..
Two firms are planning their marketing strategies. Firm K can earn $25 million in profits from strategy S if firm L responds with strategy P, and $7.5 million in profit from S if L responds with strategy Q. Firm K can follow strategy T, which returns..
The Autocar E3 refuse truck has an energy recovery system that is expected to reduce fuel consumption by 30%. The fuel cost for a regular refuse truck (without the energy recovery system) is $500 per month.
The global Propylene industry is perfectly competitive and each producer has the marginal cost function MC = 40-12q+q2 . The corresponding average cost function is AC=40-6q+1/3q2. The market demand curve for propylene is Q=2200-100P. What is the long..
q1. corporate profitability declined by 20 from 2008 to 2009. what performance would you use to trigger executive
Today more workers in the US are members of labor unions than any time in our history. Today labor unions are weaker than any time in the last 100 years. No major labor union has called a strike since the 1940s. Labor unions are relatively strong in ..
Supply-side economics is a theory in macroeconomics that lowering barriers in goods and services, along with investment in capitol will effectively create economic growth. This describes that more jobs will be created because consumers will benefit m..
Explain what is meant by "first-mover" advantage and how each of these firms was able to control a relatively large share of their respective markets.
An economy has the following money demand function: (M/P)^d = .2Y/i^(1/2). Derive an expression for the velocity of money. What does velocity depend on? Explain why this dependency may occur. Calculate velocity if the nominal interest rate i is 4%. I..
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