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Suppose two firms sell an homogeneous product; they compete in prices. Their respective marginal costs are MC1(q) = 10 and MC2(q) = 20. Find the prices that form an equilibrium (for simplicity and reality, assume that prices are quoted in units no smaller than cents). Derive the best response functions and plot them carefully.
not long ago an employee came into my office asking for a wage increase. i responded by asking what increase in
Firms pay efficiency wages because these wages:
Calculate total economic surplus under monopoly also competition. The difference is the social cost of monopoly
Explain what is meant by the principal agent problem, and relate it to shirking. What are the different pay incentive plans that correct for shirking on the job? How does profit sharing reduce shirking? What is the reason for efficiency wages?
Illustrate what would be natural rate of unemployment if a baby boom led to a year in which teenagers made up 20% of labour force.
The base year is 2009. Real GDP in 2009 was $10 trillion (2009 dollars). The GDP price index in 2009 was 112, and real GDP in 2013 was $11 trillion (2009 dollars). Calculate nominal GDP in 2009 and in 2013 and the percentage increase in nominal GDP f..
Use the market relates to vertically integrate as:
In the long-run, if prices of all resources remain unchanged, when a firm doubles all resources the quantity of output more than doubles, the firm is experiences. The term fiscal policy refers to
With the decrease in demand for bridge and tunnel crossings, what is the optimal way to adjust tolls: raise tolls, lower tolls, or leave unchanged.
A sprinkler system inside of one house does not protect houses on the other side of town. It also requires the homeowner to purchase and install it prior to benefiting from it. Once installed it can help stop fires from jumping to neighboring homes.
Suppose that Taher's pizza business operates under competitive conditions and that his short-run production function is q=20?E. What happens to the quantity of labor he demands if the wage increases to w1= $12?
A business is generating $1000 a month for the next 5 years at a nominal interest rate of 12% compounded monthly. How much cash should one pay for it?
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