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Two identical firms face linear demand. Market demand is given by P=30-Q. Suppose both firms face zero marginal costs.
1. Solve for Cournot equilibrium prices and outputs.
2. Solve for Stakelberg equilibrium prices and outputs.
3. Compare graphically consumer and producer surplus in Cournot and Stakelberg equilibria to perfect competition.
Assume the government decides to pass a law that requires all businesses to delay all future layoffs, giving at least 3 months notice to any workers they plan to lay off.
The price per unit remains $7.50 in both scenarios. Does the labour analyst's argument hold? Explain why or why not, and use data to prove your point. (Hint: calculate total costs in both circumstances).
You are a financial adviser to a U.S. corporation that expects to receive a payment of 40 million Japanese yen in 180 days for goods exported to Japan.
What types of inefficiencies and/or externalities arise in each renewable resource case that interferes with sustainable and efficient management results?
Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.
Use the IS/LM model and the IS-PC-MR model to explain what monetary policy to pursue.
In national income accounting identity showing the equality between national saving and investment, what is the representation of private saving and what is the representation of public saving?
Explain why this strategy may in fact, be rational Also, identify at least two other strategies that might permit Argyle to earn higher profits.
Explain how each of the following will affect the relative values of the dollar and the euro:
What is the growth rate of nominal GDP in the economy?An adverse supply shock raises the inflation rate associated with every output ratio by 3 percentage points. Draw the new short-run Phillips Curve.
Which of the following strategies are used by businesses to capture consumer surplus? Nash equilibria are stable because
If increased government spending and tax cuts were equally effective in stimulating aggregate demand, which fiscal tool would you select? Why?
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