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Critically examine, using the game theory matrix diagram and relevant assumptions, why is there a lack of price competition between the main banks in Australia. In your answer evaluate both the collusive and non collusive scenario. What are the alternatives available to banks to maintain or increase their market share?
Taxicab fares in most cities are regulated. Several years ago taxicab drivers in Boston obtained permission to raise their feres 10 percent, and they anticipated that revenues would increase by about 10 percent
production of widgets (W) uses labor (L) as its only input. The production function is given by W=F(L)=8*L^.5 and the marginal productivity MPL=4/L^.5. If widgets sell for $10, the price of labor is $8/hour, and there is a fixed cost of $25.
BMW sells 5,000 vehicles in the US. The export price is €40,000. The exchange rate is €1= $1.25. US price elasticity of demand for the German import, in terms of the $ price, is-2. The cost of each vehicle is €30,000. What is the current € profit ..
Find a stable matching π' determined by the DAA when the Ms propose (Show the process). Is the matching π' efficient? Explain.
If price of motor vehicles rises, what will happen to the demand of fuel oil In which direction the demand curve for fuel oil will shift with a rise in price of motor vehicles
Suppose the world price of crude oil is $15. What would be the equilibrium price and quantity under free trade? Find the price of oil, the total quantity traded, and the domestic quantity supplied. Assume you can treat foreign supply of oil as inf..
If the current stock of capital is fixed at 250 units, how many full-time workers should the firm employ if the weekly salary of each full-time worker (w) is $400 per week Compute the firm's level of output and profits per week in this short-run e..
What is the interpretation of the coefficient on lstaf f? and does the model in (viii) provide a good explanation of lavgsal? Does the model capture causal effects? Explain your reasoning.
Using the following equation for the demand for a good or service, calculate the price elasticity of demand,cross price elasticity with good x, and income elasticityt. Q= 8 - 2p + 0.10I + Px, Where Q is quantity demanded, p is the price, I is inco..
The price of a cone is expressed in cents, and the quantities are expressed in cones per day. a. Create demand & supply tables corresponding to these equations. b. Graph supply and demand and determine equilibrium price and quantity
A company is considering the purchase of tractor units that will yield benefits of $10,000 for year 1, $15,000 for year 2, $20,000 for year 3, $20,000 for year 4, and $20,000 for year 5. The depreciation system used by company is MACRS-GDS, and th..
Now the company plans to invest of 9% per year. Now the company plans to invest the total amount accrued in another certificate that pays 9% per year compound interest. How much will the new certificate be worth 2 years form now.
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