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Suppose there are only two automobile companies, Ford and Chevrolet. Ford believes that Chevrolet will match any price sets, but Chevrolet too is interested in maximizing profit. Use the following price and profit data to answer the following questions. Ford's Selling Price Chevrolet's Selling Price Ford's Profits(mills) Chevrolet's Profits(mills) $ 4,000 $ 4,000 $ 8 $ 8 4,000 8,000 12 6 4,000 12,000 14 2 8,000 4,000 6 12 8,000 8,000 10 10 8,000 12,000 12 6 12,000 4,000 2 14 12,000 8,000 6 12 12,000 12,000 7 7 a. What price will Ford charge? b. What price will Chevrolet charge once Ford has set its price? c. What is Ford's profit after Chevrolet's response? d. If the two firms collaborated to maximize joint profits, what price would they set? e. Given your answer to part (d), how could undetected cheating on price cause the cheating firm's profit to rise?
Find the trend in the growth rate of M1 and M2. What accounts for differences in the growth rate of each money supply measure?
How many years does it take for China to surpass U.S
A manufacturing rm spends $500,000 annually for a required safety inspection procedure on its production lines. A new monitoring technology would enable the company to eliminate the need for such inspection.
1. a over the years there has been great improvement in farm technology. as a result the american farmer is now more
What three events through the next three years are going to have the greatest effects the Health Care Market? Speculate on how each of these events will affect both the supply and demand curves for Health Care and the price of Health Care.
Set of individually rational allocations at the given endowment - Contract curve -Draw an edgeworth box and identify and label
Need assistance writing a business proposal
Which argument below is NOT one of the five assumptions about the economic rules of the game in America.
the display creates negative externalities. government should tax the producers of holiday lighting. resources are currently overallocated to the provision of holiday lighting in Anytown. resources are currently underallocated to the provision.
Study the effect on the market of soft drinks as new bottling machines are invented that increases the amount of produced soft drinks' bottles in a day. What is the effect of introducing new bottling machines on the market of soft drinks in an eco..
as a business owner you need to approach the issue of globalization and trade in context. with all the complicated
How does an increase in population affect potential real GDP? In your answer, be sure to mention the role played by the labor market.
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