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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?
Select one significant environmental issue. What are the costs and benefits of our current environmental issues from an economic standpoint? What type of market failure could those problems is defined as? What can you as an individual do to help in a..
Trang has strictly convex indifference curves and is indifferent between the bundles (16, 2) and (2, 4). Use the definition of strict convexity to show that Trang prefers (9, 3) to (2, 4).
Where does all the water go? According to the Environmental Protection Agency (EPA), in a typical wetland environment, 40% of the water is outflow; 50% is seepage; 7% evaporates; and 3% remains as water volume in the ecosystem. Compute the weighted a..
With Australia going through a long-lasting drought in the first decade of the 21st century, serious concerns were raised about the possibility of running out of water.
Would a FCC requirement that a licensee adhere to a format (broadcast program material) that is wished to abandon be (a) administratively enforceable and (b) constitutional?
Illustrate what output level would a perfectly competitive firm produce.
The demand schedule for new hires with le bac and the supply schedule for similarly credentialed new job seekers are given in the accompanying table. Elucidate the currency used in France-is the same as the yearly wage.
Suppose that C (q) = 10q + 3,500,000 (for which MC (q) = 10 ). Use Inverse Elasticity Pricing Rule in order to determine profit maximizing price and level of output for this firm. Is this firm able to earn a positive profit.
We would expect the coefficient of cross elasticity of demand for DVD players also DVDs to be positive.
A necessary cost-side condition for a firm to implement a cross-subsidization pricing strategy is:
Illustrate what mistakes did policymakers make that have kept developing nations from growing more quickly.
Briefly define the following terms. Tariff escalation, Optimal tariff rate, Ad valorem tariff equivalent, Voluntary export restraint (VER), Terms of trade effect (of subsidy), Harmonized System (HS) of commodity Classification, Common external tariff..
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