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Assume that 3-firms which produce a homogeneous output will compete by choosing prices and the market price P is the minimum of the 3-prices that are chosen. The market demand is determined by the equation p=12-Q. The first firm has a marginal cost of 2, the second has a marginal cost of 4 and the third has a marginal cost of 6. As usual, in case one firm charges strictly less than the others, all customers choose that firm. However the customers favor the first firm over the second and third; and the second one over the third, and will always shop from the more favorable firm if there is a tie in prices. Assume that the firms can only choose integer prices, i.e., prices like 1/2 or 2 1/2 are not allowed. Write down the profit expression as function of chosen prices and derive the best response. Find the equilibrium prices and profits.
The setup activity price driver rate, using the best cost driver for this situation.
Starting with the reaction functions of duopolists Cournot solution algebraically.
Describe the productivity change for every category also then determine the improvement for labor-hours, the typical standard for comparison.
Illustrate what phase of the business cycle is the United States currently in. Describe in detail. What is the latest GDP.
For a perfectly competitive firm the price is $2 per unit. At this price the firm is producing and selling 10,000 units. It costs $1.50 to produce the last unit. Should the firm produce more? Less? Why?
Joe Donaldson deposited $80,000 in his new business. Prepare all entries related to above transactions.
Assume you observed an acquisition by diversifying firm and that the aftermath of the deal included plant closings.
rate of technological change also innovation has increased substantially. Discuss how these changes are likely to affect your firm's optimal bundling of tasks into jobs and subunits.
Explain is it false that the influence that FED policies have on excess reserves makes a difference.
Assume total benefits also total costs are given. Elucidate level of Y will yield the maximum net benefits.
Determine the price elasticity of demand for a resource. Why is it important and what is it used for.
There has been some speculation that tax deductions like as the one allowed for interest on home mortgages will be eliminated or altered.
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