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Assume two firms, A and B, serve a market with demand D(p) = 100 minus (p). Also assume that (i) firms compete for market share (quantity competition) and (ii) firm A has cost function cA(Q) = 2Q and firm B has cost function cB(Q) = Q. Describe this environment as a game. (i.e. Specify the players, the strategies available to players, and the payoffs they receive as a function of their strategies)
Does either firm have a dominant strategy?
Compute the Nash equilibrium.
Now assume that firm A moves first, after which firm B makes its supply choice. Solve for the unique equilibrium outcome.
An increase in the price of a good causes a:
Converse Elucidate how you might go about evaluating the rate of return for the new equipment.
q. 1. last year president obama proposed a job creation program that included a payroll tax cut? using economic theory
q.1. find the sample correlation coefficient between x and y.2. how would you decide if a simple linear regression
q. assume a duopoly and let demand be given by pa-bq. in addition let both firms have the same marginal cost c. the
Discuss the advantages and disadvantages of using divisional profit as the basis of incentive compensation for division managers compared to using company profit as the basis.
Illustrate what kind of gap-inflationary or recessionary-will economy face after shock and illustrate what type of fiscal policies would help move economy back to potential output.
MMM expects to generate $60,000 in earnings that will be retained for reinvestment in the firm this year.
Suppose that two price-quantity demanded combinations for some product are ($1.20, 90 units) and ($0.80, 110 units). Using the mid points variation of the arc own price elasticity of demand formula, calculate the coefficient of elasticity for both..
Analyze and discuss the roles of physical capital, human capital, technology, and natural resources in influencing long-run economic growth of aggregate output per capita. Then discuss how governments can contribute, or discourage, long run growth th..
f merging carried with it no cost advantage, determine the number of firms needed for the merger to be protable
Could you reduce the cost of producing 1,800 pots per day by adding a pottery machine to your production process and reducing the amount of labor. Explain why or why not.
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