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Two Cournot duopolists produce in a market with demand p=100-q. The marginal cost for Firm 1 is constant and equals 10. The marginal cost for Firm 2 is also constant and equals 25. The fixed cost is zero for both firms. The two firms want to merge. They argue for the merger on the grounds that marginal production costs would fall to 10 for all units of output after the merger since all production woul be at the low marginal cost. Given this information determine whether an antirust enforcement agency that blocks any merger that reduces Total Surplus would allow this merger. Given this information determine whether an antirust enforcement agency that blocks any merger that reduces Consumer Surplus would allow this merger (Hint: You need to determine the premerger Cournot equilibrium and the postmerger monopoly outcome. Remember that the Consumer Surpolus is equal to the area under the demand curve above the equilibrium price. the area of the righ triangle isside1*side2/2
Suppose that the supply and demand for oil. Starting from a point where supply and demand are in equilibrium, describe with use of a diagram how a global recession is likely to affect equilibrium value and quantity of oil bought & sold.
Describe how exchange rates are determined using supply and demand. What is the date and source of your exchange rates.
Four mutually exclusive projects are being considered for a new two-mile jogging track. The life of the track is expected to be 80 years, and the sponsoring agency's MARR is 12 percent per year. Annual benefits to the public have been estimated by..
Elucidate is the fiscal policy expansionary or contractionary.
Illustrate elastic or inelastic. Make confirm you continue to use the correct terms when considering changes in price
Find an article from the media (internet, newspapers, magazines, etc.) on a current event that addresses an economic concept (e.g., consumption, saving, investment, real GDP, marginal propensity to consume, income multiplier, etc.). Write a one t..
You are the manager of Taurus Technologies and your sole competitor is Spyder Technologies. The two firms' products are viewed as identical by most consumers. The relevant cost functions are C(Qi)=4Qi and the inverse market demand curve for this u..
Depends on what you perceive as the results of free trade agreements such as NAFTA, would you recommend that President Obama continue on the path.
Assume the U.S. economy begins in long-run equilibrium. Concerns about global climate change cause the government to significantly restrict the production of electricity form fossil fuels.
Human service interactions in terms of macro systems-communities and organizations. Empowerment is basically a process to assist people groups, families and communities, individuals, to use their strengths to overcome their challenges.
Imagine you are the CEO of Yahoo!, and outline the relevant obligations, ideals, and effects that you believe should be taken into consideration before developing a company policy regarding employees working remotely. Examine the ways in which the..
If resources available for human consumption were out of limit, there would be no need for a subject field such as economics. Why do I say this?
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