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Suppose that inverse demand is given by p(Q) = a-bQ, where Q is total quantity supplied in the market. There are two firms in the market, each with a cost function of c(q) = cq, now assume that the first firm moves before the second firm.
A) Compare the price level and level of output under Stackelberg to Cournot
B) What is the fundamental reason that the first firm in the stackelberg model is able to earn higher profits than in the Cournot model
1) Suppose the market for semiconductors in the U.S. is characterized by: Qd = 200 - 40P [Demand] Qs = 40+ 40P [Supply] The market for semiconductors in the rest of the world is characterized by: Qd = 160 - 40P [Demand] Qs = 80 + 40P [Supply]
Summarize Walt Disneys marketing mix based on one or several of the following elements: Product and branding strategies (appropriate service strategy if the company has a consumer orientation). Supply chain strategies (how they place the product in t..
Consider both sides of the argument and come to a decision of whether to close the plant or continue to operate it. How would you explain to either the president or the CEO that he or she is wrong?
What effect did the tax have on LeAnn's output level. How LeAnn's did profits change.
If salary and prices are completely flexible, then an unfavorable productivity shock would raise both the natural rate of unemployment and the actual unemployment rate.
A perfectly competitive firm sells 50,000 units of knives at a price of $3. The firm's average cost at 50,000 units is $2.75. Calculate the firm's profit. Please verify answer twice before sending back to me the steps. I want to make sure I have the ..
q1. since the gdp is a total market value of final goods and services produced within a country over time. why is this
Tim's utility function is U(X,Y)=(X+2)(Y+1). Write an equation for Tim's indifference curve that goes through the point(X,Y)=(2,8). Suppose that the price of each good is one and that Tim has an income of 11. Write an equation that describes his budg..
In each of the following situations, the possible bundles contain apples and oranges and either 0, 1 or 2 of each. An example bundle would be 2 apples and 1 orange = (2, 1). In each part, there is a description of a set of preferences. In bundles wit..
Submit answers to the following questions in the unit drop box. You must explain your answer and provide your supporting computations. Yes/No answers or simple numbers are not acceptable and will not receive full credit. Why does a sales tax shift a ..
The ratio of consumer liabilities to consumer financial assets rose from just over 10% in 1950 to more than 30% in 2009. However, recent researches points to a number of factors that bear on the consumer’s decision of when and how much to borrow. Lea..
Compared with perfect competition, quantity produced in monopolistic competition is inefficient as price is higher than marginal cost (i.e. allocative inefficiency). Why do some economists argue that even if price is higher than marginal cost, it doe..
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