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You are the manager of a firm in a market where the demand is P = 50 − Q. You have only one rival, and both you and your rival face a production cost of $2 per unit. As it stands, you would both choose your output simultaneously. But you have the opportunity to invest in a new technology that would allow you to become the first mover. What is the most you would pay for the technology?
In October 2011, Apple introduced the iPhone 4S, which had new features, including camera and voice control, but sold at the same price as the previous iPhone model. How did t
Show a T-account for a bank when you make a deposit of $2000 into your checking account. Assume the reserve ratio is 20%. If the lending process continues as far as it can pos
The james bond movie for 1964 was goldfinger. The plot was quite simple: gold tycoon Auric Goldfinger tried to detonate an atomic bomb inside the U.S. Bullion Depository in Fo
A major electronics manufacturer expects to generate additional revenue from its recently won government contract. The company forecasts that the revenue will be $190 million
How will the real interest rate affect the cost of your car loan? Let’s assume that the old clunker you have been driving needs $500 in repairs in order to pass an annual car
Suppose Farmer Lane grows and sells cotton in a perfectly competitive industry. The market price of cotton is $1.60 per kilogram, and his marginal cost of production is $1.54
An American is considering relocating their Oregon facility to Nicaragua. The current exchange rate is 1 U.S. dollar (USD) to 25 Nicaragua Cordobas (NIO). The current wage rat
Using a labor market graph and a few well chosen sentences a situation in which athletes that immigrate to the United States may be discriminated against, despite earning a hi
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