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The market demand is p=50-Q. There are two firms who behave as Cournot duopolists. For simplicity assume the marginal cost is zero
A) solve for the equilibrium price and output
B) compare results with monopoly price and output
Prepare a five page research paper about social problems where the free markets are not allowed to function, which includes the market for a particular illegal good and service, a regulated market, etc.
Suppose that the economy is currently at potential output. Also suppose that you are an economic policy maker and that a college economics student asks you to rank.
Since 1900 real income has increased tremendously, yet the average number of children per family has decreased. Consider the following possible explanations and illustrate in terms of indifference curves and budget constraints of families between the..
Is this projected outcome consistent with the law of demand? What is the price elasticity of demand associated with this pricing decision? Should you increase the price?
A best-selling author decides to cash in on her latest novel by selling the rights to the book’s royalties for the next six years to an investor. Royalty payments arrive once per year, starting one year from now. In the first year, the author expects..
In the short run, a firm cannot vary its capital, K=2, but it can vary its labor, L. It produces output q. Explain why the firm will or will not experience diminishing marginal returns to labor in the short run if its production function is q=10L+K. ..
A project has projected cash flows of -$148,500, $32,800, $64,200, -$7,500 and $87,300 for years 0 to 4, respectively. Should this project be accepted based on the combination approach to the modified internal rate of return if both the discount rate..
In the northeast US and in eastern Canada, many citizens heat their homes with heating oil. Suppose you are one of these people, and you are expecting a cold winter, so you are considering your heating oil requirements for the season.
Merritt Manufacturing needs to accumulate $15 million to retire a bond issue that matures in 12 years. The firm's manufacturing division can contribute 100,000$ per quarter to an account that will pay 2% quarterly. How much will the remaining divisio..
Create a scenario around this business in which a manager would decide to either stop operations in the short-run or going out of business in the long-run.
Semi-Salt Industries began its operation in 1975 also remains the only industry in the world which produces also sells commercial-grade poly glutamate.
Maureen has the same income and faces the same prices as Sam and Bruce, but Maureen views 1 cup of orange juice and 1 cup of apple juice as perfect complements. Find Maureen’s optimal consumption bundle. How much additional income would Maureen need ..
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