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There are only 2 firms in a market facing same demand curve as follows: Q = 120 – 10P The marginal cost of each firm are, respectively, MC1 = 4 + 0.2 Q1 and MC2 = 4 + 0.2 Q2 a). Find the profit maximization level of output for both firms. b). which firm is more vulnerable in case of aggressive price war between these two firms? Why?
Assume the demand for gasoline is perfectly inelastic—i.e., the demand curve is vertical. If a tax is levied on the producers of gasoline, what percentage of the tax collection would be paid by the consumers of gasoline 0% or 100%? Explain.
Nevertheless your total unit sales have increased over this period. Assuming rational buyers and no deceptive advertising, how can you account for this.
Personal possession of currency is prohibited in U.S. prisons, although, in practice, prisoners still exchange goods and services. Until 2003, the year in which the U.S. government banned smoking in federal penitentiaries, cigarettes were the preferr..
Tribes that receive sovereign government status, are listed with other similar tribes, and have a Federal trust relationship with the Federal Government are referred to as:
In the Keynesian framework, which of the following event might cause a recession? Which might cause inflation? Sketch AD/AS diagrams to illustrate your answers. 1-2) Rapid growth in the economy of a major trading partner.
What can you conclude about the firm's use of its resources versus other options (or alternate uses)?
A firm has the opportunity to invest in a project having an initial outlay of $20,000. Net cash inflows (before depreciation and taxes) are expected to be $5,000 per year for five years. The firm uses the straight-line depreciation method with a zero..
What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds?
Illustrate what occurred to employment during the rest of 2008. Illustrate what are some of the alternatives to a tax cut that might have been utilized.
The bond, which may be called after five years, has a nominal yield to call of 5.4%. What is the bond's call price?
In the foreign exchange market, if the interest rate on foreign deposits increases, holding everything else constant,
Do you think this pattern of trade is consistent with the principle of comparative advantage?
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