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1. Name some different forms of imperfect competition.
2. Define Nash equilibrium. Why do firms in oligopoly situations reach Nash equilibria?
3. Why are collusions and cartels often unstable?
4. What is the market equilibrium in Bertrand competition with identical goods?
Rain falls on wheat parade The price of wheat has fallen from $9 a bushel to $7 a bushel in the past seven months as rain and snow fell on the southern states.
How much can Wells Fargo lend to developer who will repay the loan by selling first 6 view lots out of 13 lots at $190,000 each 2 year from now Assume the bank will lend at a nominal 14% per year, compounded semiannually.
Explain why the second model is a restricted version of the first, stating the restriction.
A worker will be paid $3,000 if she gets at least 40 answers right and $2,500 otherwise. For either type, an hour of studying is as bad as giving up $20 income. What is the equilibrium of this scheme?
In the diagram for this exercise, plot the consumption function line for the data in the table below. Calculate savings at each level of real disposable income and plot the savings function.
When Iraq invaded Kuwait in 1990, the market price of crude petroleum jumped from $21.54 per barrel to $30.50 per barrel - an increase of almost 42 percent. Your boss is puzzled, because the price increase actually occurred
A firm has a production function f (k; l) = pkl. Suppose that in the short run the quantity of capital that the firm has to use is fixed at the level of 9 (and so k = 9), but when producing zero the firm can fully recover the cost of capital
How many nurses does National Hospital employ, and what wage will National pay its nurses?
Show that the rate of population growth has no effect on the equilibrium growth rate of the economies studied in Sections 11.1 and 11.2. Explain why. Do you find this prediction to be plausible?
Suppose you start with 10 hours and then decide to spend an additional $30 on tennis. On your curve, show the initial point and the new point. How many additional hours can you get?
What insights does this exercise provide about why firms are more likely to interview and hire applicants with white-sounding names?
Define yourself through your cultures. You should have a discussion of the cultural groups to which you belong. Are some more influential than others on you, your perceptions, your communication etc.
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