Problem 1:

(i) Assuming a Cournot duopoly where the market demand is estimated as:

P = 100 - Q

The marginal cost is estimated to be constant at Rs. 10 for the two firms. Calculate the equilibrium price and output for each firm.

(ii) Based on (i), explain the incentives for collusion in the above market?

Probelm 2:

(i) Explain the different measures of market concentration.

(ii) Discuss the importance of competition on industrial efficiency.

Probelm 3:

(i) Explain the term ‘wage-cost spiral'.

(ii) Explain how business cycles affect economic growth.

(iii) Critically discuss the link between inflation and unemployment.

Posted Date: 10/23/2013 5:59:24 AM | Location : United States

Ask an Expert

Related Discussions:- Calculate the equilibrium price and output for each firm, Assignment Help, Ask Question on Calculate the equilibrium price and output for each firm, Get Answer, Expert's Help, Calculate the equilibrium price and output for each firm Discussions

Write discussion on Calculate the equilibrium price and output for each firm
Your posts are moderated

Write your message here..

Related Questions

Status of the economy and gdp , • Although the country produced several typ... • Although the country produced several types of commodities (goods and services) in the year 2002, but this country's Central Statistics Office has grouped such commodities into f

Fiscal policy and budget deficit, Question 1: (a) How do taxes affect t... Question 1: (a) How do taxes affect the economic well-being of market participants? (b) Explain the link between fiscal policy and budget deficit. (c) What are the factor

Evaluating projects incrementally, Ask What is the meaning of evaluating pr... Ask What is the meaning of evaluating projects incrementallyquestion #Minimum 100 words accepted#

Natural Monopoly, Assume the firms cost function is: C(Q)= 100+10Q+Q^2 , De... Assume the firms cost function is: C(Q)= 100+10Q+Q^2 , Determine whether this industry is a natural monopoly when the demand function is: 1) D(P)= 100-3P 2) D(P)= 90-3P 3) D(P)= 10

Foreign exchange market, Consider the following information in the internat... Consider the following information in the international money markets:             Spot rate                       :           $0.95:€             Forward rate (one year)  :

Define the difference between effort and elapsed time, Define the differenc... Define the difference between effort and elapsed time. What is the importance of this difference for project planning purposes? Effort is the whole volume of work included in a

“Ledger is said to be the principal book entry and t, “Ledger is said to be... “Ledger is said to be the principal book entry and the transactions can even be directly entered into the ledger account.” Elaborate and explain why journal is necessary.

What is success effectiveness of world trade organisation, What is the succ... What is the success effectiveness of World Trade Organisation in the promotion of development? Success effectiveness of World Trade Organisation in the promotion of developmen

Explanation of privatisation, Problem 1 Discuss Privatisation in USA wi... Problem 1 Discuss Privatisation in USA with some examples. Explanation of privatisation Advantages Disadvantages Problem 2 Discuss the basic differe

Economic theories applied in business economics, Explain how the economic t... Explain how the economic theories applied in business economics