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Two firms have identical cost curves, but firm A is a price taker while firm B is a price searcher. Is it possible that the two firms could find themselves at the same wealth maximizing output? (Assume that firm B is NOT able to engage in any form of price discrimination.) If so, explain the specific circumstances under which this would occur; if not, prove it.
q1. if argentina wanted to pay off their u.s. dollar debt after the peso devalued how many argentine pesos would it
Although successfully positioning a new product in a well-established market may seem difficult, Method Products shows that it is not impossible (Kotler & Keller, 2012). Keeping in mind the international legal environment, find an article using the o..
If the CPI was 110 last year and is 116 this year, what is this year’s rate of inflation? What term do economists use to describe this second outcome? Inflation/deflation
Earlier this year, Greek citizens, fearing currency changes or capital controls, took billions of euros out of their bank accounts. Some of it they sent to banks in other countries, and some of it they even hid in flower pots, freezers, and yes, unde..
Suppose that hospitals use nurses (N), doctors (D) to perform surgeries (Q). The production function for surgeries is: Q = F(N;D), where F(N;D) is some function that increases in N and D. Assume that the marginal products of N and D are diminishing
What is the rationale behind the Taylor rule?
A local golf course just bought a lawn mowing machine. It comes with 2 yr free maintenance. The manager wants to provide enough money in an 8.00% bank account now (EOY -0) to have a fund out of which he will pay for needed maintenance. At the end of ..
Atlas Transportation is considering installing temperature logger in all its refrigerated trucks for monitoring temperatures during transit. If the systems will reduce insurance claims by $40,000 per year for 5 years how much should the company be wi..
Comment on the following quotation: "One way that a minimum wage could result in expanded employment is if the government sets the minimum below the market equilibrium wage."
The market for hairbrushes is perfectly competitive. Suppose that the new fashions for hair are "buzz cutt" and long and uncimbed. Tell how the market and a typical firm respond in the short and long run to these developments. Use market/firm model a..
Supply and Demand in the U.S. Car Market. Please include a graph showing the initial equilibrium and the new equilibrium with the corresponding price and quantity and an explanation to support your answer. As the price of gas increases, what happens ..
Suppose that James and bob live on the same street. In the winter both of them like the show on their street to be plowed. Bobs demand is given by Q=40-p and James demand ha given by Q=30-2p. Suppose that the marginal cost of plowing the snow is cons..
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