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An industry consists of two firms. The demand function for the product of firm i is qi ( pi , p j ) = a - bpi + cpj .
The marginal cost of production for each firm is zero.
(a) Find the critical value of the discount factor that supports joint profit maximization with grim punishment strategies. [Hint: Let r = c/b, where 0 r 1.]
(b) How does the critical value of the discount factor depend on the degree of product dif- ferentiation r ? What does r = 1 imply about the relationship between the two goods? r = 0?
When the economy is at full employment, should the federal government run a budget deficit, budget surplus, or neither? Justify your answer. What are the pros and cons of each budget position?
suppose you own a taxi company in new york city. assume further the taxi industry in nyc is described by a perfectly
part-1nbspwhat is the official poverty line?nbspis the number of people higher or lower than it was last year? ten
The question from Economics is interpreting an article. The article is about food security and the economic plight of some of the developing nations in the world.
What type of barriers to entry exists in this Industry and how did Virgin Mobile manage to enter into this industry and justify why it is beneficial for existing firms to attempt to create such barriers.
The additional benefits that arise by using an additional unit of the managerial control variable is defined as the:
1. the zinger company manufactures and sells a line of sewing machines. demand per period q for a particular model
Many companies are using computer mediated communication for training and updating their employees. They must choose the most effective and efficient manner of communication. Effective and efficient may be defined as achieving
How would a substantial appreciation in the European euro in the foreign exchange market affect the quantity of imports of European products by the U.S.? How would such an appreciation of the European euro affect travel by Americans to Europe?
Analyze and conclude whether there is a difference between logistics management and supply chain management.
The evidence on the supply curve of financial capital is controversial, however at least in the short run, the elasticity of savings with respect to the interest rate appears to be __________.
1. provide an example of each of the factors of production and how the government may alter the factor to expand the
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