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Q. Assume that two firms compete in quantities (Cournot) in a market in which demand is described by P = 260 - 2Q. Every firm acquires no fixed prices except has a constant marginal cost of 20.
a. What is the one-period Nash equilibrium market price? What is the output and profit of each firm in this equilibrium?
b. What is the output of each firm if they collude to produce the monopoly output? What profit does each firm earn with such collusion?
If you want to make four equal payments on each January 1 from 2013 through 2016 to accumulate the $1,000, how large must each payment be.
Assume that we care about the average welfare of individuals in Indian villages, i.e., we put equal weight on each individual's utility.
Under very high rates of inflation, why would people prefer to use a barter system to buy goods, rather than use paper money.
Sketch the extensive form of the game, carefully labelling the players that move and the actions they have available
Proposals for modifications of the law are formulated by committees. Under the closed rule, the legislature may either accept or reject a proposed modification, but may not propose an alternative.
what hypothesis we can use to show whether the change in female literacy rate in both the models is significant or not.
Imagine that you were the president of an emerging country that is trying to reduce the number of its imports
Organize the above data into the appropriate categories for the current as well as capital accounts determine the current account balance, the capital account balance, as well as the official settlements account balance.
Business firms become pessimistic about their future earning capacity as do banks. Nominal interest rates fall during recession.
Explain how could those same inventory systems quickly transmit large demand shocks directly to sudden, deep recessions.
Alex's Furniture Mart produces and sells tables in a perfectly competitive market. When Alex's Furniture Mart produces and sells 250 tables.
Analyze the USA financial meltdown that happened in 2008-2009. This crisis was partially caused by the reward systems that were in place for participants in the financial system. Identify the major participants in the financial system.
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