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Consider the following market with 3 ?rms where 1 ?rm has a substantial market share (theleader), and the other 2 ?rms are the minor competitors (followers). All ?rms, however, share thesame technology with the costs MC = 5. The demand is P = 120 − 3Q.
(a) Determine the equilibrium price and each ?rm’s equilibrium quantity and price.
(b) How will you answer to part (a) change if all ?rms have the same market power.
Life insurance policies typically have clauses stipulating the insurance company will not pay claims arising from suicide for a specified term—typically two years from the date the policy was issued. Use precise economic terminology to explain the li..
Suppose in Fiscalville there is a 0 percent tax on the first $10,000 of income, but a 15 percent tax on earnings between $10,000 and $20,000 and a 30 percent tax on income between $20,000 and $30,000. Any income above $30,000 is taxed at 45 percent. ..
q1. for each of the determinants of demand in equation 2.1 classify an example exemplify the effect on the demand for
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Should Congress be more descriptively representative? How could this be ensured? Would it threaten democracy if representatives of particular demographic groups were favored in elections in order to bring about more descriptive representation?
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Throughout most of human history, people lived in relatively small, egalitarian bands. With the advent of farming, stratified societies began to emerge and today dominate the human landscape. For this question, explain Diamond’s thesis as to A. Why t..
Economists frequently point out that factor movements between two countries can be a substitute for goods movements between the countries in terms of the impact on relative factor prices in the countries. Explain why the two types of movements can be..
Discuss how your expected and disposable future income, after receiving your college degree, may change your saving and investment decisions and transactions in the loanable funds market.
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