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Let the inverse demand curve be p(q) = a − bq. Suppose there are two firms, with constant marginal cost equal to C.
Let the two firms be located at 0 and 1 on the unit interval. There are n consumers located uniformly along the interval, each with a reservation value of V . They incur transportation costs of t per unit of distance traveled from their location to the a store.
1) If the firms are both located at 1/2, what are their equilibrium strategies and what is the equilibrium outcome?
Henry initially consumes the quantity of pens and pencils shown as B in figure 2. After the prices of both goods change, he buys combination A. From figure 2 and these facts, it must be true that . . .
The rapid globalization of capital markets enables persons also institutions based in one nation to invest in corporations based elsewhere with relative ease.
Which of the following raise the incentive for households to save?
show mathematicallt whether the mardinal utility for (X1) and (X2) is increasing or decreasing. Find the Marginal rate of substitution for the indifference curve generated by the utility function.
q.qd 2000 - 25 p 2 a where p represents cost as well as a is the number of weekly advertisements. presently the
Use the IS-LM model to predict the short-run impact on the interest rate and output if the central bank pushes interest rate down at the same time that both consumption and investment fall due to a financial crisis.
Given the same price elasticity of supply, sellers would be able to pass along the largest portion of a 10% tax on which item.
How disparate are returns if you win. As disparity increases => marginal benefit increases. Which of these two explanations is correct.
bananas can be produced. Between these points. Illustrate what is the opportunity cost of producing a pound of apples.
Do you consider yourself an early adopter when it comes to trying out new products or new fashions, or do you tend to take a wait-and-see attitude? How does your attitude toward new products and new ideas influence your decision making as a consumer?
The cost of running the government program ( assuming no storage costs). Illustrate what is the total price of the program to consumers.
This question asks you to use the Solow growth model to analyze the effects of immigration. Suppose output is produced with the production function Y = A(K/N)^α. Capital depreciates at rate δ, and productivity, A, is constant. The saving rate, s, is ..
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