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Suppose that market demand can be represented as p = 100 - 2Q. There are 10 identical firms producing an undifferentiated product, each with the total cost function TC = 50 + q2. Compare the competitive outcome with the cartel outcome. What is the individual firm's incentive to cheat on the cartel?
Explain why monopolistically competitive firms frequently prefer non-price competition to price competition. Do you agree. Why.
Chevron Corporation is one of the largest integrated oil companies in the world. Its management is assessing the world marketplace and taking steps to sustain the company’s competitive position. Faced with business competition on a global scale, Chev..
dont tell me weve lost another bid exclaimed janice hudson president of prime products inc. im afraid so replied doug
Describe the contents of the article very briefly and include a critique could agree, disagree or both agree and disagree with the article.
In each case use a diagram in your notes to determine the expected effects on the equilibrium price level (P) and level of real output (Q). For each of the economic structures described in a-j, give the effects on P and Q. (ie + or -). (Assume th..
The following equations represent supply and demand functions for electricity in a certain city: Compute the net surplus (= PS+CS - total environmental external costs) at private market equilibrium and social efficient market equilibrium.
On your girls first birthday, you open an account to fund her college education. You deposit $1500 to open the account. Each year, on her birthday, you make another deposit, with each being 10% larger than the previous deposit. The account pays inter..
An industry has two firms, each of which produces output at a constant unit cost of $10 per unit. The demand function for the industry is) = 1,000,000/p. Give the best-response function for each firm. What is the Cournot equilibrium price for this in..
Explain why oligopolists have an incentive to collude or form a cartel and Explain why oligopolists in a collusive agreement might have an incentive to renege on such an agreement.
A DOT is performing a benefit-cost analysis of a new highway using an analysis period of 40 years as part the required environmental impact assessment of the project. The section of highway is estimated to have a construction cost $260 million dollar..
If a 10 percent fall in the price of beef increases the quantity of beef demanded by 20 percent and decreases the quantity of chicken demanded by 15 percent, calculate the cross elasticity of demand between beef and chicken. What can you conclude abo..
If the Fed buys government securities, then there is
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