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Suppose that inverse demand is given by
D(Q) = 56 − 2Q, Q = q1 + q2
and the cost function is
TC(qi ) = 20qi + f
(a) Find the limit output for fixed costs ( f ) equal to 50, 32, 18, and 2.
(b) What is the SPNE for the entry game with the following timing: in the first-stage firm 1 can commit to its output; in the second stage firm 2 can enter and choose its output for fixed costs equal to 50, 32, 18, and 2?
q1. qd 8000 - 16p 1.75 m 30 pgifm 30000 also pg 50illustrate what is the constant term if the equation for the
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Represent graphically the effects of an expansionary monetary policy and a contraction fiscal policy in the IS/LM/FX model.
Individuals A and B are the only consumers of good X. Individual A demand for good X is given by: Q = 4 – P and individual B demand for good X is given by: Q = 8 – 2P. The supply for good X is given by MC = 3. Assume good X is a (pure) public good. G..
What would happen to world welfare if the U.S. paid exporters a subsidy of $5 for every pair of blue jeans they sold to Canada, but Canada charged a $5 countervailing duty on every pair imported into Canada?
The slope of the SP curve is determined in large part by the
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