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The market demand for petrol is given by =339- where p is measured in cents per litreand Q is measured in millions of litres. There are two petrol retail outlets (X and Z), each hasa constant marginal cost and average cost of 147 cents per litre.
(a) If X & Z is a monopoly, calculate its profit maximizing output and market price. Illustrate your result using a suitably labelled diagram.
(b) Now assume that the market comprises a duopoly, firm X and firm Z. Find the Nash-Cournot equilibrium and illustrate your results using a suitably labelled diagram.
(c) Using the results in (a) and (b) above, and the market demand curve, illustrate the marketprice in the case of monopoly, duopoly, and perfect competition. Note: to derive thecompetitive solution assume identical firms i.e. AC = MC.
Why do people hold bonds rather than larger savings account or checking account balances Under what circumstances might they change their portfolios, moving their funds out of bonds and into bank accounts
For a developing country to increase, it needs capital. The major source of capital in most nations is domestic saving, but the target of stimulating domestic saving usually is in conflict with the government policies targeted at decreasing inequalit..
Carl paid $40,000 to the City of Hollywood for general revenue bonds. During the current year, he receives $2,300 interest income from the bonds. Market interest rates drop causing the value of the bonds to increase so Carl sells the bonds for $43,00..
What is nominal GDP for 2009 and 2013 b. What is real GDP for 2009 and 2013
1. Who has absolute advantange in chocolates Who has absolute advantage in shirts 2. Who has comparative advantage in chocolates Who has comparative advantage in shirts 3. If these nations trade freely, what does the U.S. import from Switzerland
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Elucidate why do you think U.S. investors do not try to capitalize on the high interest rates in Mexico.
Required an Industry study on Accounting Services in 500+ words with references and statistics.
National income is initially at its equilibrium level when desired investment falls and a fall in national income, but not by as much as the fall in desired investment
The problem is relates to Economics and problem is a critical examination of the Canadian economy. Canadian economy has been facing budgetary imbalances for quite some time.
Explain why government regulation is needed, citing the major reasons for government involvement in a market economy and justify the rationale for the intervention of government in the market process in the U.S.
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