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1. Explain the difference between the Stackelburg and the Cournot duopoly models. Outline the process by which a Stackelburg equilibrium is reached.
2. Outline the ‘Kinked Demand Curve' theory of oligopoly and account for price rigidity in this model.
3. Present and critically appraise Fellner's theory of price leadership.
4. Carefully explain the concept of the reaction function in duopoly analysis.
For proportional tax system presented in table 7, illustrate what are average tax rates for people earning $50,000, $100,000 and $200,000. Illustrate what are corresponding average tax rates in regressive and progressive tax systems.
Illustrate what is the source of IKEA's success today. Can you see any weaknesses in the company. What might it do to correct these.
Since education yields private market returns, which are fully captured by the person who makes the investment, the market will provide the optimal level of education and the govern- ment should not intervene.
Is there a surplus or deficit in the government budget at the equilibrium level of income.
How will the effect on price of an outward shift in demand for labor differ from the effect on price of an equivalent shift in the demand for land.
How does this policy involve the supply and demand for loan able funds. What occurs to the equilibrium interest rate.
Elucidate however, you do not have to start making payments until you graduate from college 2 years from now.
imagine a backyard garden of fixed size and all other inputs except labor also fixed ; will adding a worker increase your output? Will adding another increase output by as much? another?
Your friend's monthly demand for minutes of calling is given by the equation 50, where p is the price of a minute.
Line segments will automatically connect the points. Remember to plot from left to right also plot among integers.
While the population variances are unknown, we will assume they are equal.
What type of inflation occurs if workers ask for higher wages and firms must raise product price in order to pay their workers?
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