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Reconsider the "double marginalization" model. Solve for the equilibrium input price and final price when there are N downstream firms compete in Cournot fashion. Explain the intuition of the result that the greater the degree of retailer competition, the greater the optimal input price.
Consider the advantages and disadvantages of the European Union adopting a common currency and determine if this move was a good idea or not
Hiring more supervisory personnel can reduce the principal-agent problem and decrease costs. can reduce the principal-agent problem but increase costs. will eliminate the principal-agent problem. is contrary to the profit incentive.
The price of MP4 players has been going down in the past decade. Give an explanation for this consistent drop in the price of MP4 players. Use the model for long run competitive firm to illustrate your answer. Draw two graphs. One is to show the ..
Write down the difference between Equilibrium price and Equilibrium quantity. What role does elasticity place?
If the two are generally not competing on price, are there any forms of non-price competition that might emerge? If so, describe them. Or would such other forms of competition also exhibit "kinked type behavior"?
Define scarcity and opportunity cost. What role these two concepts play in the making of business decisions? What is Marginal Analysis ? (b) Why Is Marginal Analysis Important in Economics? (c) What is the role of Marginal analysis ?
A new competitor enters the industry and competes with a second firm, which had been a monopolist. The second firm finds that although demand is not perfectly elastic, it is now relatively more elastic.
The characteristics of the Perfect competition model are flawed by to many inaccuracies and offer little or no relevance to the real world
Suppose the inverse market demand for silicone replacement tips for earbud headphones is p = pN - 0.1Q, where p is the price per pair of replacement tips, pN is the price of a new pair of headphones, and Q is the number of tips per week. Suppose ..
Evaluate how well the design of the First IB web site meets the needs of a potential small business customer. Discuss the elements of the site that work particularly well in meeting the needs of this type of site visitor.
Discuss on relationships between production and cost, highlighting the equivalence between diminishing marginal productivity and increasing marginal costs.
Industry structure is often measured through calculating the Four-Firm Concentration Ratio. Assume you've an industry with 20 firms and the CR is 30%. How would you describe this industry?
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