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Elucidate the importance of credibility when evaluating a firm's potential moves. For example, if firm two is the "responder" in a Stackelberg game, it may threaten to flood the market if firm one (the "leader") does not set a low quantity (say, ½ of the monopoly quantity). Should firm one consider this threat to be credible? How might the answer change if firms are playing this "game" repeatedly over many periods? What are some strategies that firm two can use to gain credibility?
the mainstream theory of the business cycle, is the most common source of reciession: a decrease in aggregate demand, a decrease in aggregate supply, or both.
Describe how each of these activities affects government, households, and businesses. Describe the flow of resources from one entity to another for each activity.
You are given permission by the owner of the store to hire a fellow classmate to help out. One day you see the classmate take some clothing from the store.
Assume some pencil workers switch to jobs in the growing computer industry
Determine the price elasticity of demand at each quantity demanded using the arc or midpoint formula.
A forest owner in a developing country claims that he earns more m1y with carbon sequestration than with timber production.
For this assignment, you are to continue using the fortune 500 Verizon Wireless Company.
Identify the point on the budget constraint this worker has chosen. Elucidate how much is he working every day.
Assume your parking lot has two different consumers who utilize it at two different times.
Sharp rises in the cost of milk, grain, and fresh fruits and vegetables are hitting cafeterias across the country, forcing cash-strapped schools to raise prices or serve more economical dishes.
Assume Caesar allocates his entire budget to the purchase of chips as well as soft drinks.
Increasing the minimum wage will result in a decrease in employment for workers who now earn less than the new minimum wage.
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