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Assume that two firms sell differentiated products and face the following demand curves: = 15 − + 0.5 and = 15 − + 0.5
1. Derive the best response function for each firm. Do these indicate that prices are strategic substitutes or strategic complements?
2. What is the equilibrium set of prices in this market? What profits are earned at those prices?
suppose that the federal government announced a tax rebate of 500 for all individuals and 1000 for families. What would be the overall impact on AD of these policy changes or would the policy change effects completely cancel each other out?
The salvage value of either alternative is negligible at any time. If MARR is 10% per year, what present expenditure for the auxiliary equipment can plan you justify spending? Assume that you need the heating system in?nitely.
However, firms that have installed expensive air purification systems are able to eliminate fumes from the glue inside the plants. Suppose that 50 of these pillow-manufacturing jobs exist in firms with air purification systems, while the other 150 of..
Identify market structure Identify elasticity of the product Include rationale for the following questions: How will pricing relate to elasticity of your product?
Efficiency-wage theory suggests that to improve workers performance, firms should:
(Balance of Payments) Explain where in the U.S. balance of payments an entry would be recorded for each of the following: A Hong Kong financier buys some U.S. corporate stock. A U.S. tourist in Paris buys some perfume to take home.
What claim does an employer have on a person's feeling, rights, and privacy? and what rights can an employer justified ably limit in the workplace?
A Wartburg engineering student has been out of school and working for a few years when they decide to buy a house that costs $233,000. They intend to pay a down payment of 20% and finance the rest at 5.75% per year compounded monthly on a 30-year mor..
Many economies impose restrictions on international capital flows, assuming that such restrictions limit the scope for arbitrage between domestic and foreign bonds, thereby effectively making such bonds poorer substitutes for each other, explain how ..
The current annual US inflation rate is 3 percent and the current Brazilian annual inflation rate is about 10 percent. Given the current Real/USD exchange rate (3.65) predict the real/USD exchange rate a year from now using relative PPP:
What generalization can you make asd to the relationship between marginal revenue and elasticity of demand? Suppose the marginal cost of successive units of output was zero.
Imagine you are a manager of a chemical company. An accident has occurred in which chemicals leaked into the ground water nearby, the community is unaware. Assess the costs involved in cleaning up the water immediately (confessing) versus hiding the ..
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