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Consider a Cournot duopoly with the inverse demand p = 130 - Q. Both firms have constant marginal and average cost MC = AC = 10.
a- Find the Cournot-Nash equilibrium output and profit of each firm. Calculate the con-sumer surplus and DWL.
b- Suppose those two firms collude as a monopolist, find the equilibrium output and theirjoint profit. Calculate the consumer surplus and DWL under collusion.
c- Compare your results in (a) and (b).
According to standard Keynesian economic theory, an increase in government spending has a greater impact in terms of increasing the level of aggregate income--that is, is more "simulative"--if it is:
u-build-it hardware company is a chain of five stores selling hardware products in a midwestern state. it offers a full
In the short run, suppose a competitive firm’s ATC = 7200/q + 20 + 2q. If cost functions stay the same in the long run and the industry remains perfectly competitive, what price will prevail in the long run?
State what, if anything, each of the following does to the supply or demand of loanable funds and to net capital outflows. Draw a complete and fully-labeled diagram of the loanable funds market and net capital outflows to illustrate
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Traditionally, many public utility companies (such as telephone & electric service providers) have been highly regulated. Thus, they have operated in stable environments, shielded from competition.
A corporation purchased a machine for $60,000 five years ago. It had an estimated life of ten years and an estimated salvage value of $9,000. The current book value of this machine is $7,500. If the current market value is $25,000 and the effective i..
Identify production level to maximize profits Explain how to balance fixed and variable costs Apply economic cost concepts in making business decisions learning team reflection
select at least three different types of organizations. write a 700- to 1050-word paper in which you evaluate the
Consider a Ricardian model.
Under what conditions will a firm shut down operations in the short run? Identify an example you are familiar with, or have identified during research, of a business that has temporarily shut down operations in the short run. What led to this decisio..
In effect, the CRA and the actions of Fannie Mae and Freddie Mac acted to subsidize home purchases by people who otherwise would not have purchased houses. All subsidies must be financed by taxes, implicit or explicit on someone.
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