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How does a firm (FIDO cell phones) competes
Description of how a firm competes in the marketplace. Does the firm engage in price or non-price competition? Why do you believe the firm selected this mode of competition? Is it the best approach? Consider both market structure and price elasticity of demand when you formulate your answer.
Two identical firms face linear demand. Market demand is given by P=30-Q.Solve for Stakelberg equilibrium prices and outputs.
Illustrate the similar price elasticity of supply, sellers would be able to pass along the smalles portion of a 10%tax on which item.
Describe what effect an expansionary fiscal policy would've on the price level and real GDP starting from full employment equilibrium.
Suppose you are an advisor to President Obama. Illustrate what fiscal policies would you put in place.
Suppose that natural real GDP is constant. For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent.
Compute the path of the economy, that is , calculate real GDP, the price level, the inflation rate and real money stock for each year until GDP I swithin 1% of the potential. (limit calculated values to 10 decimals points)
An industry consists of three firms with identical costs C (q)18q +q2. What is the industry equilibrium (price, output and profits) if the firms have Cournot beliefs?
How does an active fiscal policy helps or hinder long-run growth in the economy.
Limit your reaction to stratigies which can work and reasons for their success.
Find out the optional number of units to put in a package. How much should the firm charge for this package?
Explain how each of the following will affect the relative values of the dollar and the euro:
When a recession is over, do people begin to immediately feel the effects of an efficient economy? Use the experience of the most recent recession to justify your answer.
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