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Consider a Cournot duopoly with the inverse demand p = 130 - Q. Both firms have constant marginal and average cost MC = AC = 10.
a- Find the Cournot-Nash equilibrium output and profit of each firm. Calculate the con-sumer surplus and DWL.
b- Suppose those two firms collude as a monopolist, find the equilibrium output and theirjoint profit. Calculate the consumer surplus and DWL under collusion.
c- Compare your results in (a) and (b).
Assume no change in current productivity or current labor supply in either country. What is happening to financial flows.
Recently I began thinking about why the use of tokens for money is so popular. In casinos, I think that it is well justified, but there are some cases when those arguments are not useful. For example, why would an amusement park make you buy tickets ..
Deficit spending results whenever the government. Issues bonds to finance. Finances current expenditures that exceed. Refinance the dept. none of these choices
question 1 one tradeoff society faces is between efficiency and equality. elaborate each term with suitable examples.
For what range of interest rates could these firms use trigger strategies to support the collusive level of advertising.
with monetary policy for closed, it is hard for authorities to stimulate demand. Interior design does this show that currency-board regime was a mistake.
Briefly contrast how firms in a perfectly competitive market will respond to long-run profits and losses. Include an explanation of each response affects the price level
q1. how short is the short-run production period?enlighten cost advantage of a firm operating at constant returns to
Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.20 million. This investment will consist of $3.00 million for land and $9.20 million for trucks ..
7) in 1988, the average wage rate was 9.45 an hour and in 2008 the average wage rate was 18 an hour. The CPI in 1988 was 118.3 and in 2008 it was 215.3. which is real wage rate is higher?
When the actual Lorenz curve is as far away from the 45-degree line as possible, there is. One way to reduce the degree of income inequality is to. The Gini coefficients for countries A and B are 0.25 and 0.30, respectively. We can definitely conclud..
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