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Suppose identical price setting duopoly firms have constant marginal costs of $50 per unit and no fixed costs. Consumers view the firms products as perfect substitutes. The market demand is Q=150-p
In Bertrand equilibrium firm 1s price is:
and firm 2's price is:
If your wealth is held as currency or checking accounts, or other assets that you can convert to money on the short notice, your assets are considered to be?
You are the manager of a gas station and your goal is to maximize profits. Based on your past experience, the elasticity of demand by Texans for a car wash is -4, while the elasticity of demand by non-Texans for a car wash is -6. If you charge Texans..
College students often borrow money to attend school. Generally, the plan is to pay loans back through future earnings. In this way, capital markets and labor markets are intimately connected.
React to the topic by summarizing a significant chapter and/or readings and an application of that chapter material to the subject. David Ricardo was worried that the corn laws (high taxes on imported grain) would seriously hamper the advancement of ..
Illustrate what does GDP income leave out. Should a country meet additional quantifiable goals before being considered "developed".
What would you say are the two biggest challenges for any company that wants to be a global contender? What are the possible outcomes of these challenges - meaning what would happen if the company fails? What can the company do to overcome or even pr..
In 2001, the number of people in the working-age population increased from 212.6 million to 215.1 million, while the labor force increased from 141.5 million to 142.3 million. By how much did the labor-force participation rate change?
The game known as the Battle of the Bismarck Sea (named for that part of the south-western Pacific Ocean separating the Bismarck Archipelago from Papua-New Guinea) summarizes a well-known game actually played in a naval engagement between the United ..
Madeline and Nick took out a 30year mortgage for $160,000 at 9.8% interest compounded monthly. After they had made 12 years of payments, they decided to refinance the remaining loan balance for 25 years at 7.2% interest, compounded
A small consulting firm is only interested in hiring College graduates (denoted by S), but it does not know how many it should hire in order to be profit maximizing. Assume there is a competitive wage of $20 per hour and the production function is F(..
According to the five forces of the Porter's model, the organization of an industry can be analyzed in terms of its structure, conduct and performance. Discuss. Is it always true that structure causes the conduct and thus performance of an industry? ..
Assume all markets are competitive, the product price is p = $2 per unit, the wage rate is w = $16 per hour and the firm's production function is q=E(36?E), where E is the level of employment and the firm's fixed costs are zero. What is the value of ..
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