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Consider a Cournot duopoly model with inverse market demand function p = 60 - q1 - q2. Firm i's cost function is (qi)^2+10qi for i = 1 and 2.
(a) Find the Nash equilibrium outcome ( firms' outputs).
(b) Find the collusive outcome ( firms' outputs), and show it is not an equilibrium.
Warranties and service agreements play an important role in communicating a company’s willingness to stand behind its products. Research the warranty coverage and how well the Harley dealership network stands behind the product. How do the warranty c..
Explain how is the federal budget deficit affecting the U.S. economy. Essay should be about 400 words. How dependent is American, on the Chinese economy.
Supply and Demand in the Cell Phone Market. As wages increase for Apple Workers, what happens to the price and quantity of iphones? As the price of drone phones decrease, what happens to the price and quantity of iphones? If the government taxes cell..
Sylvia lives in California and qualifies for the CalWorks program (California’s version of TANF). CalWorks participants can earn $225 per month without having their benefits reduced. Beyond $225, benefits are reduced by 50 cents for every dollar of e..
Some economists and policymakers argue in favor of replacing the current income tax in the USA with consumption tax. What are your opinions on the issue? How do think such change impacts your income and expenditure pattern?
Every demand curve must eventually hit the quantity axis because with limited incomes, there is always a price so high that there is no demand for the good. Do you agree or disagree? Why?
Why has universal national healthcare never become a reality in the United States, and what do you believe are the key strengths and weaknesses of a national healthcare system when compared to the healthcare system we have today?
New pharmaceuticals developed in the U.S. get patent protection from competition (a monopoly) that lasts 17 years. After the patent expires, other firms can enter the market and produce generic versions of the drug. However, the original firm still m..
Substantive responses use theory, research, and experience or examples to support ideas and further the class knowledge on the discussion topic.
Are cyclical fluctuations necessary for economic growth?
The national debt is now $8,700,000,000,000. If the population of the United States is 300,000,000 what is each citizen's share of this debt? The national debt is rising at the rate of 1.69 billion dollars per day. Explain how much is each citizen..
Which component of GDP is the most stable. Look for the smallest change from the year with the smallest contribution to GDP to the year with the largest contribution.
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