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An industry consists of two ?rms. The demand function for the product of ?rm i is qi =24−5pi +2pj. The marginal cost of production for each ?rm is zero. (a) Find the price best-response function for ?rm i. (b) Assume the ?rms compete over prices once; ?nd the Nash equilibrium in prices. (c) Find the collusive prices. (d) Draw a diagram that illustrates parts (a) through (c). (e) What are collusive pro?ts? Bertrand pro?ts? (f) What is the optimal defection from the collusive agreement?
If you could create the "perfect" society that protects its citizens yet fosters personal growth and help them be productive, what will it look like? For this paper design you
Read the following articles and then write your thoughts on the subject. Should cash be abolished? If it is abolished what are some of the concerns for the private citizen?
Elucidate the multiplier concept as it applies in this case. What are the qualifications and limitations of the multiplier model.
Define and explain what the production on function and the marginal output curve are. Graph the production function and the marginal output curve. How are the two related? Ind
Suppose you are the owner-operator of a gas station in a small town. Over the past 20 years, you and your rival have successfully kept prices at a very high level. You recentl
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Explain carefully how the rate of inflation and the length of the holding period (how long a durable asset is owned) affect the burden of the capital gains tax for the owner o
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