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Suppose two identical firms competed in prices (Bertrand competition) in a market. Both firms face a constant marginal cost MC = 25. What is the equilibrium price charged by both firms? Suppose now that both firms implemented a price match guarantee. How would this effect the equilibrium price charged to this market? Explain your answer.
An engineering firm estimates that its cost for employer sponsored health insurance will be $750,000 next year and increase at 11% per year for the next 8 years. The company CFO wants to budget a uniform amount each year to cover these costs. If the ..
At the end of 2014, the unemployment rate in the U.S. was 5%. The Federal Reserve has stated that it will conduct monetary policy to bring down this unemployment rate during 2015. According to the given information, which of the answer choices correc..
Consider an overlapping-generations model with inside and outside money, where the rate of return on inside money is x, while the rate of return on outside money is 1 z. What is the effect on the deposit-to-currency ratio, nominal money stock M1 and ..
Economists usually do not favor subsidies on specific products or in-kind payments to help low income people.
Demand in a market is found to be inelastic. Is the market necessarily an antitrust market? Is this necessarily true? If p A + t > pB , is A an antitrust market?
The market risk premium is 10% also government risk-free bonds are payingIllustrate what is its Weighted Average Cost of Capital.
Not too long ago Hurricane Sandy hit the northeast portion of the United States, causing serious and costly damage. Given what you've learned this week, what can we conclude probably happened to the price of portable generators? To the price of food?..
Illustrate what can you conclude about the structure of the industry in which this firm is operating.
What is organizational culture? What effect does it have on a organization.. Include in your rescission the positive and negative aspects of culture in an organization
How did the concept of strict constructionism affect the development of banking and transportation during the antebellum years?
Explain the basics of stakeholder theory as if you are talking to a friend. Should a corporation care about the interests of people other than shareholders? How would a corporation behave differently if it accepted a shareholder theory versus a stake..
Why are commitment problems particularly widespread in international relations?
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