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An industry has two firms, each of which produces output at a constant unit cost of $10 per unit. The demand function for the industry is q(p) = 1,000,000/p. Give the best-response function for each firm. What is the Cournot equilibrium price for this industry?
Assume that there are two identical firms in an industry, each producing the same good at the same constant marginal cost of $60. Make a table, similar to the one we made in class, for the Bertrand, Cournot and Monopoly models, showing the following:..
Discuss the importance of laws and the requirements to amend them regularly. Cite examples from the perspective of Oman.
There are pros and cons if policymakers use monetary and fiscal policy to stabilize the economy. Explain the main arguments in favor of economic stabilization. Explain why policy lags could make stabilization policies counterproductive.
A company is considering a proposed new plant that would increase productive capacity. Which of the following statements is CORRECT?
A small college has space for a maximum of 1,000 students. The college can identify 500 of its students who are willing to pay $20,000 per year and 500 students who are willing to pay $10,000 per year. If the college charges all students the same tut..
How does your organization handle change requests? In other words, what’s the process used to evaluate changes required by the customer to a current project? What’s the role of the change control board (CCB)? Do you have a CCB?
The company uses an effective income tax rate of 40%, and the after-tax MARR of 15% per year. What is the approximated value of the company's before-tax MARR?
Re economies and diseconomies, suggest factors that will make the average cost of production lower for a larger firm than for a smaller firm. What are factors that may force up the average cost of production?
Why are cartels difficult to maintain? What is needed for predatory pricing to succeed in increasing long run profits? Consider the following game in which two players simultaneously decide whether to adopt technology A or adopt technology B. If the ..
Jenny consumes 3 different goods X, Y and Z. Her corresponding utility function is U(X,Y,Z) = 2XY + 4Y + Z^2 . If Px = Py = $1, Pz = $2, and Jenny’s budget is $38, how much of X, Y and Z, should Jenny purchase? What is the maximal utility level that ..
Please explain the significance of whether a contract must be in writing. This would include an explanation of the type of contracts that would fall inside and outside the Statute of Frauds.
The ability to arbitrage the differences between international tax systems is a very important aspect of international tax planning - Tax Arbitrage and Economic Substance
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