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Firm A is the incumbent in a market and currently enjoys a monopoly. Firm B is a potential entrant. The demand in this market is p = 6 - (qA + qB), where p is the industry price of output. Both firms produce output costlessly. At the start of the game, A will decide how much to spend on advertising. B, after learning how much A has spent, can then either match A's advertising expenditure or spend nothing on advertising. If B spends nothing, then B earns 0 and A remains the monopolist. If B matches A's advertising, then they play a Cournot game where they choose output simultaneously. Find the subgame perfect Nash equilibrium of this game. Assume that if Firm B is indifferent between entering and not entering this market it will choose not to enter.
Utilizing a supply and demand diagram, explain how speculative attacks occur in the foreign exchange market.
Illustrate fiscal policies also monetary policies which would be appropriate at this time.
Illustrate each of the following events using a demand and supply diagram for bananas.
which are the endogenous variables (y & x3) and the exogenous (Z, X2). also which equation is identified or not identified or overidentified, an explination as to why this is would be great.suppose you have the following simultaneous equations mode..
A local market for three bedroom rental units is depicted by the following demand and supply equations;
The inverse market demand curve is P=140-Q, and inverse supply curve is P=20+Q. Now Assume a commodity subsidy of $20 is given for each unit of production.
Thailand Economy: I am third year student at college of Business (Finance). I have Macroeconomic research paper about Thailand economy. I want research paper and PowerPoint slides to present the paper.
how percapita income fiscal policy laws local economies and census data affect the ability to fund governmental functions.
Find out an output which maximizes the total revenue. Calculate the price elasticity of demand at this output.
Briefly discuss the methods traders use in attempting to evade the difficulties they face in markets that involve "Lemons".
Elucidate what it means that the preference relation has a utility function representation,
At the end of 2002, the (1-year) interest rate was 1% in the U.S., and 26% in Argentina. Recall that at the same time, the spot rate for the Argentine currency was Peso 4.00/$.
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