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Which of the following is an example of Stackelberg competition?
GlaxoSmithKline and Pfizer compete in the HIV drug market by annually announcing their production quotas during the second week of January.
Natura Pet Products introduced the first grain-free dog food; eventually, other dog food companies entered this market but had to limit their production plans, given Natura Pet Products' sizeable market share.
A price war between American Airlines and United Airlines leads to both airlines setting ticket prices equal to marginal cost.
Firestone offers consumer rebates to keep its tire prices below Goodyear's.
Life Cycle Cost Analysis (LCCA) does not include "User benefits resulting from project" or "Externalities resulting from project". Unlike analysis based on net annual worth, net present worth analysis does NOT require equal analysis periods for diffe..
John advertises his used car for $5,000 in the newspaper. He would be willing to sell his car for as little as $4,000. Bill values the car at $4,800 but offers $4,500 for it and John accepts. How much producer surplus is created by this trade? How mu..
Firms that can identify two types of consumers can price-discriminate perfectly. Firms can price-discriminate only if there is zero competition in the market. Firms that price-discriminate will not reach higher profits.
Extensive margin models use Rogerson (1988) style lotteries in order to simplify the savings problem under non-full-insurance.
After calculating the sample size needed to estimate a population proportion to within 0.05, you have been told that the maximum allowable error (E) must be reduced to just 0.025.
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.
Mr.A makes $50,000 a year and pays $10,000 in taxes. Ms.B makes $30,000 a year and pays $6,000 in taxes. Find the tax rate and after tax income for each of them. Identify what type of tax this is. Find the net exports and solve for the level of aggre..
Suppose an office supply store increased its price of file folders from $.79/box to $.99/box and the quantity demanded decreased from 85 boxes/month to 83 boxes/month. What is the price elasticity of demand for file folders? Is the demand elastic, un..
Our recent recession seems to demonstrate again that expenditures and incomes depend on each other. If markets do not self adjust, how can a decline in spending lead to a negative process that ruins an economy? (Consider referencing the "Keynesian Cr..
the mining industry has been a major driver of economic growth in australia in the recent decade and currently accounts
A tax imposed on the supplier of Blu Ray players shifts
Explain why the different definitions are important also explain the different procedures of the money supply.
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