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After a few years of monopoly, the family that owns the Coca-cola monopoly gets in a fight, and they split the company in two. Now there are two large Coca-cola retailers in your area, and each retailer must decide whether to charge a high or low price. Assume all customers purchase from the firm with the lowest price. if both firms charge the same price, they split the market. The high price is the monopoly price, so at the high price, the full market is worth the same amount as is it is for monopoly (ie. your answer to question 2d). at the low price, the market is worth 60%of the value of the monopoly market.
a) Set up the game as a simultaneous move game
b) Find the Nash equilibrium
Explain how will this affect wages and number of workers in home construction. How will this affect the cost of building a home.
One month ago, they added five workers, and productivity also increased by 50,000 pages per day. Copiers cost about twice as much as workers. Would you recommend they hire another employee or buy another copier?
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Illustrate what is economy's aggregate consumption function. Illustrate what is marginal propensity to consume for economy.
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A 10% increase in the price of pizza causes a 10% drop in the quantity of both pizza and beer sold. Describe elasticities and the nature of the two products.
comparing the company's cash records with the monthly bank statement reveals several additional cash transactions. Calculate the correct balance of cash?
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