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Glassworks and Clearsmooth compete in the local market for windshield repairs. The market size (total available profits) is $10 million per year. Each firm can choose whether to advertise on local television. If a firm chooses to advertise in a given year, it costs that firm $3 million. If one firm advertises and the other does not, then the former captures the whole market. If both firms advertise, they split the market 50:50.
Suppose the two windshield-repair firms know they will compete for just one year. Write down the payoff matrix for this game. Find the Nash equilibrium strategies.
Dr Leona Williams a well know Plastic Surgeon, has reputation for being one of best surgeons for reconstructive nose surgery. Dr Williams enjoys a rather substantial degree of market power in this market. She has estimated demand for her work to b..
Compute the equilibrium interest rate. Compute the amount of investment demand, private saving, and national saving at the equilibrium interest rate.
Critics have argued that if there are strong factor substitution effects, these subsides can reduce employment in the state.
When you are a manager for a MNC in a foreign country do you interfere with local customs such as mistreatment of women and use of 10 year old children as child labor, or do you respect the local customs and traditions
Melinda would like for her descendants to be able to withdraw 40000 every year forever starting in 30 years. She has found an investment that will provide her a guaranteed 10% return forever. To fund the withdraws she will make ten equal annual d..
Explain the level of resource misallocation comparing the outcome under the Monopoly situation with the outcome under perfect competition
What is the marginal physical product of the fifth worker? What is the weekly wage of the fifth worker? What does the price of output need to be in order for the firm to profit from hiring the fifth worker?
Office building maintenance makes call for the stripping, waxing, and buffing of ceramic floor tiles. This work is often contracted out to office maintenance firms, and both technology.
Sketch a domestic supply and demand diagrams for a product in which the United States does not have a comparative advantage.
Discuss some of the problems associated with hyperinflation--use the first article to provide examples of the problems with inflation
Find out the income elasticity of demand. Elucidate whether gas is a normal or inferior product.
Compute Brazil and the United States with the state of the economy.
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