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Consider the market for carbonated water and suppose that demand is given by D(p) = 100 – 5p There are only two firms producing carbonated water, each with the same constant unit cost c = 2.
(a) What are the equilibrium prices and quantities if the firms behave as Cournot competitors? What are the firms’ profits?
(b) What are the equilibrium prices and quantities if the firms behave as Bertrand competitors? What are the firms’ profits?
Suppose an economy that is initially at full employment faces a substantial increase in the factor cost of production. Discuss (with the aid of aggregate output market and money market diagrams) the short-run effect on output, unemployment, general p..
If the number of labor hours increases by 10% and the number of hours of capital used decreases by 10%, what is the percentage change in output?
A firm has fixed cost of 2,000.Its short-run production function is y+4X and one-half, where x is the amount of variable factor it uses. The price of the variable factor is $3,000 per unit. Illustrate where y is the amount of output the short-run..
A federal government agency that purchases certain types of home mortgages, buys U. S. Treasury bonds from another government agency, elucidate how would this affect the net public debt, other things being equal.
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.
One of your friends uses the terms ethics and morality interchangeably. You do not think this is correct. How would you explain the difference between ethics and morality? Provide an example of morality and one of ethics in your explanation.
If none of the high-cost firms makes a positive profit, how large is n. Elucidate how much profit do the low-cost firms make.
Dividends paid last year were $.70. Flotation costs on issuing stock will be 10 percent of market price. Dividends and earnings per share are projected to have an annual growth rate of 15 percent. Illustrate what is cost of internal common equity ..
Suppose the French suddenly develop a strong taste for California wines. What happens to the demand for dollars in the market for foreign-currency exchange What happens to the value of dollars in the market for foreign-currency exchange
Illustrate what is projected credit markets. How do you use this to make business decisions. Also how would investment or returns on excess cash affect a auto business.
Discuss the manner in which an analyst would compare the relative profitability of the two potato chip segments.
q. an independent trucker has the following options. if he buys expensive machinery then he can hire fewer drivers to
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