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Suppose in the Cournot model that the firms have different production costs. Let c1 and c2 be the costs of production per unit for firms 1 and 2 respectively, where both c1 and c2 are assumed less than 1/2. Find the Cournot equilibrium.
Delta Dawn’s Bakery is considering purchasing a new van to deliver bread. The van will cost $21,500. Two-thirds ($14,333) of this cost will be borrowed. The loan is to be repaid with four equal annual payments (first payment at t = 1) based on an int..
Describe how you would correct for it within the regression equation. What transformation would you apply to the data to account for the trend?
Three individuals each hold a ticket for a lottery that will pay $100 with probability 0.2 and $10 with probability 0.8. Their utility functions for the monetary amount x may be described as follows: Tom: u(x)=0.002x2+x Jim: u(x)=log10(x) Janet: u(x)..
Tomatoes grow well in Kansas. Why do the people of Kansas buy most of their tomatoes from Florida, Mexico, and California?
The production possibilities curve shows the:
Your income is $40. The price of each unit of food is $2, and the price of each unit of clothing is $10. Draw a graph of your budget line. Now, your income rises to $50 and the prices of food and clothing remain the same. Draw a graph of your new bud..
Based on Figure 1 (which summarizes the demand, marginal revenue, and relevant costs for your product), determine your firm's optimal price, output, and the resulting profits for each of the following scenarios:
What factors in technological segment can have significant impact on U.S. restaurant industry? How does each of these factors shape the growth and changes of the industry? What are the future trend of each factor and the resulting changes of the indu..
Calculate the approximate total tax revenue if all of the coal burned in the United States was burned under a $100/ton carbon dioxide tax. Do this (a) for one year at the present rate and (b) for the total U.S proved reserves. Assume 100% carbon for ..
Explain how a bank's ability to create transaction deposit accounts through loans creates money. Corben Inc. has a successful brand with the name Crunz. The market size in which Crunz competes is $4 billion, and Crunz has generated sales of $400 mill..
With the Federal Open Market Committee seeming to have such a positive outlook, how do you think this will affect the economy? Do you agree that the workforce /labor markets will continue to see gains?
Using a market or industry as an example, explain how the Prisoners' Dilemma game helps explain observed (real-world) behavior among oligopolistic firms.
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