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Assume there is a duopoly with the following demand equations Q1=30-P1+P2 and Q2=30-P2+P1. Marginal cost are given as MC1=6, MC2=0. Calculate the Bertrand solution. What are the reaction curves?
What is price, quantity and revenue for each firm.
Explain how each of the following developments would affect the supply of money, the demand for money, and the interest rate. Illustrate your answers with diagrams.
What is the difference between customer satisfaction and customer loyalty? Why is it important to distinguish between these two concepts?
Traffic at a certain intersection is 2000 cars per day. A consultant has told the city that traffic is expected to grow at a continuous rate of 4% per year. How much traffic will be expected at the end of 5 years? : P=2k, r=4% continuous comp, n=5, F..
Historical data suggests that in the athletic shoe industry, the price elasticity for shoes is approximately -0.67. Explain what price elasticity is, and how to interpret the stated elasticity for athletic shoes of -0.67. What effect would you expect..
illustrate the effects of capital formation by comparing the production possiblility curves at the present time and ten years in the future.
Illustrate what is the unemployment rate. Karen sharpens knives in her spare time for extra income.
Elucidate would you suggest he buy more jeans and fewer t-shirts, or more t-shirts and fewer jeans.
Suppose the market for wine in the U.S. is characterized by: Calculate the deadweight loss if the U.S. imposes a prohibitive tariff per unit of imported wine.
The cost function for a firm is given by TC = 6,000 + 12.5Q. The firm sells output in a perfectly competitive market and other firms in the industry sell at a price of P = 25 - 0.5Q. (i) What level of output should be produced to maximize profits?
It is $16 trillion today. Does this mean that the average American is twice as well off today than in 1996? Why or why not?
Illustrate what would it raise more money than today, less money, or the same amount of money.
Discuss the differences between unemployment and underemployment and give examples of each. Which do you think is a more serious “problem” for the economy? How might underemployment be addressed through government policy?
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