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Consider an oligopoly with n Cournot competing firms. Market demand is linear, p = a - bQ (where Q is total output), and the firms initially have symmetric marginal cost, ch . Suppose one firm can innovate and obtain a patent that allows it to compete with the others firms at a lowermarginal cost, cl . Assume that the innovation is nondrastic. What is the private value of innovation to the innovating firm? What if the innovation were drastic so that the innovating firm exists as a monopoly after the innovation?
As the mayor of a local town, I have the power to repeal workplace safety laws. How would repealing all workplace safety laws affect the wages of construction workers building the local school?
he company will use the truck for eight years and will depreciate it over this period time with the SL method. What is the difference in the amount of depreciation that would be claimed in year five
Describe the impact of an expansionary fiscal policy in an open economy using the ISLM model and the interest-rate parity relationship. Explain what happens to output, the interest rate and the exchange rate, using the appropriate graphs to illustrat..
q.a. for jalapeno peppers draw a graph of market. be sure to label everything.b. draw a new graph that shows what
If Starbucks demand and supplies for premium coffee (one-pound bag) are in equilibrium and demand rises substantially. Illustrate what will happen if this market moves to new equilibrium.
Discuss the idea of DRG-based prospective payment mechanism for hospitals. Discuss the potential effects of DRG payment on quantity of services produced by the hospitals, composition of different types of services offered, incentives for adoption of ..
Explain how both the flow-of-product approach and the earnings approach can be used to measure GDP and the role profit plays in these calculations.
At Dulles airport, only taxis and privately owned cars are allowed to use the highway between downtown and the airport. That taxi market is competitive. There is a special lane for taxis so they are always able to travel at 55mph. Suppose P,E and G c..
Illustrate what did he know about costing to the chain store representative was overlooking. Be sure to describe or chart the shape of Morita's costing.
Describe the Taylor rule. If the Fed were following the rule, what would the nominal Fed funds rate be if inflation over the past year were 4% and output were 1% below its full-employment level?
q.a firm that sells e-books books in digital form downloadable from the internet sells all e-books relating to
Suppose that the government imposes a temporary tarpon all imports, which makes imports more expensive relative to domestic residents (reducing the trade balance for any fixed level of the real exchange rate). Discuss the implications of this policy ..
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