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Suppose that inverse demand is given by D(Q) = 56 − 2Q, Q = q1 + q2 and the cost function is TC(qi ) = 20qi + f Find the Stackelberg equilibrium and compare it to the Cournot equilibrium. 6. Demand and costs are as given in the preceding question. (a) Find the limit output for fixed costs ( f ) equal to 50, 32, 18, and 2. (b) What is the SPNE for the entry game with the following timing: in the first-stage firm 1 can commit to its output; in the second stage firm 2 can enter and choose its output for fixed costs equal to 50, 32, 18, and 2?
Then suppose Income increases to 1261 and Pinputs increases to 144. Elucidate how large is the change in the equilibrium price.
Does your firm have a dominant strategy? Does firm 2? If so, indicate what this strategy is for each. Given b., find the Nash Equilibrium outcome (actions, payoffs) for the one-time interaction.
q.sara is a dot.com entrepreneur who has established a web site at which people can design and buy a sweatshirt. sara
What is the opportunity cost of investing in physical capital? Do you think a country can "over invest" in physical capital? What is the opportunity cost of investing in human capital? Do you think that a country can "over-invest" in human capital? E..
What is value of marginal propensity to consume (MPC) in this model Marginal propensity to save (MPS).
Economists use Gross Domestic Product (GDP) to measure the economic activity and the national income. What are the major components of the USA GDP? Explain the contribution of each component to the GDP with data. What is the difference between real G..
Illustrate what was the impact on the supply and demand of labor on one sector of the labor market. Explain the factors that affected labor demand and labor supply in the chosen historical example.
q.consider the following demand as well as schedule for bottles of watercost p quantity demand as well as used by
The city of Greenville is concerned about rising rent for low-income households. Several policies being considered. Suppose there are a large number of construction companies, In the absence of any government intervention, what will be the long run p..
ESPN currently pays the NFL $1.1 billion per year for eight years for the right to exclusively televise Monday Night Football. What is the net present value of this investment if the parent Disney Company has an opportunity interest rate equal to its..
It has been proposed that a government agency be charged with the responsibility for determining the amount of pollution
What is current process capability as measured by Cp. What is current process capability as measured by Cpk.
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