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The Boca Raton Company announces that if it reduces its price subsequent to a purchase, the early customer will get a rebate so that he or she will pay no more than those buying after the price reduction.
A. If the Boca Raton Company has only one rival, and if its rival too makes such an announcement, does this change the payoff matrix? If so, in what way? B. Do such announcements tend to discourage price cutting? Why or why not?
If the supply curve shifts to the right and the demand curve shifts to the right by an equal amount proportionately, what will happen to equilibrium price?
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What are the two firms' best response functions? Show you calculations and what will be the market price, the market output, the output of each firm and the firms' profits?
Presume that there is one manufacturer and one retailer. Final inverse demand is P(q) = 100-2q. Marginal cost of the manufacture is 10 and the retailer has a marginal retailing cost of 5 in addition to the wholesale price charged by the manufacturer...
a monopolist faces a market demand curve given byq 240 - pand a cost function ofc q 10 40q q2a find the prot
In a study published in 1980, B. B. Gibson estimated the following price and income elasticities of demand for six types of public goods:
1. In the graph drawn above, the diagonal line is the line of equal distribution of income. The curves, L1 and L2 are Lorenz curves. (i) What is measured on the horizontal axis and what is measured on the vertical axis of the graph? (ii) Why is the d..
A city is spending 20.2 million on a new sewage system. The expected life of the system is 50 years, and it will have no market value at the end of its life. Operating and maintenance expenses dor the system are projected to average 0.6 $ million per..
Under patent protection, a company has a monopoly in the production of a high tech component. Market demand is estimated to be: P = 100 - 0.2Q.
Through periods of inflation, all prices increase. Inflation rates differ across regions mainly because of differences in housing prices.
Assuming that poor and rich countries have the same production function, illustrate how the poor country will converge with the rich country. Describe how this mechanism works. 2. In the data, countries with low living standards have capital-to-wo..
However, many richer economies have little land or land of poor quality. How can a country with little land or unproductive land become rich?
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