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An industry contains two ?rms, one whose cost function is C(q1) = 30q1 and another whose cost function is C(q2) = q2 2. The inverse demand function for the ?rms’ output is P = 120 − Q, where Q is the total output. What are the ?rms’ outputs in a Nash equilibrium of Cournot’s model?
Rational expectations theory suggests that? short-run stabilization policy
Calculate the coefficient of price elasticity (midpoints approach) for Goldsboro's supply.
The market for grapes is given by the following supply and demand equations: Q = 120 – 15P Q = 20 + 5P a. Identify the demand function and the supply function. b. Compute for the equilibrium P* and Q* (Q*, P*). c. Compute the PED at (Q*,P*) AND the P..
A chemical recovery system costs $30,000 and saves $5,280 each year of its seven=year life. The salvage value is estimated at $7,500. The after-tax MARR is 9%, the CCA rate is 20% and taxes are at 45%. What is the net after-tax annual benefit or cost..
q.if the spot rate for japanese yen is 80 yean equals 1 us and the annual interest rate on fixed rate one-year
Suppose you are studying the recent rise in shale energy. You know the inverse demand function for shale energy is P = 100 - Qd. The supply of shale energy is P = Qs. Find the equilibrium price, the equilibrium quantity, and the consumer and producer..
Determine how much a car owner would be willing to invest to achieve the new energy efficiency standards of 54.5 mpg. Assume that gasoline sells for $2.50/gallon and the owner expects to receive a 5% return on their investment. The owner travels 15,0..
The US government decides to introduce a tax on a given market to increase government revenues that can be used to finance the provision of public goods. What are the consequences of introducing a tax on a labour market and on a product market? Why d..
The research department of the COLLEGE STUDENT BLUE-JEANS has estimated the income elasticity of demand for blue-jeans of the Gap Corporation to be 2. Further, most economic forecasts predict a 3% increase in incomes for students during the upcoming ..
A representative of the American clothing industry recently made the following statement: Workers in Asia often work in sweatshop conditions earning only pennies an hour. American workers are more productive and as a result earn higher wages. Is the ..
Use the AS-AD model to graph the following issues with economic growth and instability:
q1. illustrate a form of financial instruments through which corporations and governments borrow money from financial
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