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Consider the market for carbonated water and suppose that demand is given by D(p) = 100 – 5p There are only two firms producing carbonated water, each with the same constant unit cost c = 2.
(a) What are the equilibrium prices and quantities if the firms behave as Cournot competitors? What are the firms’ profits?
(b) What are the equilibrium prices and quantities if the firms behave as Bertrand competitors? What are the firms’ profits?
Suppose an individual is currently buying 10 CDs a year at a price of $10 (per CD). The price of CDs then goes up to $15 each but she simultaneously gets an after tax raise of exactly $ 50. Assuming NO other price changes, determine the well being..
Illustrate what price and quantity of computers should you produce to maximize your firm's profits. Explicidate long adjustment should you anticipate.
Derive an expression for average cost. Derive an expression for marginal costs. Is there any range of production characterized by scale of economies. Elucidate what production level are scale economies exhausted.
Suppose that investment decline by 40 units to a level of 60. What will be the new level of equilibrium income.
This will mean replacing one of the weekly passenger flights with a freight flight
Derive the simple bid-rent function for a model with only firms. Illustrate what factors can cause the city to grow larger.
Bread and butter are complements. A decrease in the price of bread results in a(n)
what is the diamonds water paradox and how is it
study of individual behaviour - individual industry like education, meat industry, tourism and agriculture. Choose any ONE industry from this list and discuss the reforms been done in that industry.
Find firm's profit-maximizing price and quantity. Illustrate what is profit. firm's production manager claims that firm's average cost of production is minimized at an output of 40 units.
In developing a vaccine for the SARS virus a pharmaceutical company incurs a very high fixed cost. The marginal cost of delivering the vaccine to patients, however, is negligible (consider it to be equal to zero).
It is a common belief that social security benefits will run out in the near future. How can we save social security?
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