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Q1. The following represents the potential outcomes of your first salary negotiation after graduation: Assuming this is a sequential move game with the employer moving first, indicate most likely outcome. Does the ability to move first give the employer an advantage? If so, how? As the employee, is there anything you could do to realize a higher payoff?
Q2. The market for widgets consists of two firms that produce identical products. Competition in the market is such that each of the firms independently produces a quantity of output, and these quantities are then sold in the market at a price that is determined by the total amount produced by the two firms. Firm 2 is known to have a cost advantage over firm 1. A recent study found that the (inverse) market demand curve face by the two firms is P=280-2(Q1+Q2), and costs are C1(Q1)=3Q1 and C2(Q2)=2Q2.
What is each firm's marginal revenue and what is each firm's reaction function?
Quantity, whole revenue and profit when company charges different price in each market and exploits its total profit.
Repeat these calculations for the third, fourth, and fifth years, assuming that the Government taxes at a rate each year and has noninterest expenditures annually.
Discuss industry concentration, demand and market conditions and the pricing behavior of Kodak in the 1990's. Do you think the industry environment is significantly different today.
MMM expects to generate $60,000 in earnings that will be retained for reinvestment in the firm this year.
In 2012, Balnur taught music and earned $20,000. She also earned $4,000 by renting out her basement. On January 1, 2013, she quit teaching, stopped renting out her basement, and began to use it as the office for her new Web site design business.
Suppose the interest rate on 6-month treasury bills is 7 percent per year in the United Kingdom and 4 percent per year in the United States.
Describe the Schumpeterian notion of "creative destruction"
The cost curves of the firm. In terms of economies of scale, why would a firm sometimes want to expand output and sometimes not want to expand output.
Mustard and mayonnaise are substitutes. Mustard and relish are complements. Mustard is a normal good. During the summer, about 50% of all mustard was recalled by manufacturers and removed from store shelves.
Illustrate the solution graphically using Labor Supply / Labor Demand and Production Function diagrams.
Explain the logic of the Ricardian view of government debt and evaluating its practical relevance.
Ordinary least- squares method or the two- satge least squares method for estimating industry demand for rutabagas.
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