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consider an industry with a dominant firm and several fringe firms. assumes that this is a free-entry industry. a dominant firm given by C(q)=800+20q+q^2. The fringe firms all have the same variable cost as the dominant firm, but doubled fixed cost. There are 10 fringe firms. the market demand is Q=4100-5*p. what are the marginal cost of the dominant firm and the fringe firms?
Then determine NDP. The Expenditure approach equals out to $361 Billion, the way to find this is to add up all the expenses, and the Income approach equals out to $380 billion and the way to find this part is to add up all the income. With that de..
Industry structure is often measured by computing the Four Firm Concentration Ratio. Assume you have an industry with 20 companies and the CR IS 30 percent.
the daughter of a women with the income in the bottom third of the income distribution will herself have a 60% chance of being in the bottom third, a 25% chance of being in the middle third, and a 15% chance of being in the top third. Income Group..
Assume that the John Smith, the manager of marketing division of Chevrolet at GM, estimated the given regression equation for Chevrolet automobiles:
An asset with a cost basis of $100,000 and an ADS* recovery period of five years is placed in service and is expected to generate net cash flows of $30,000 per year during its 6 years useful life. Its salvage value is expected then to be negligib..
In a closed economy the following holds: Household consumption C is given by the consumption function: C = 100 + 0.75Yd Planned investments are I = 250 (independent of Y ). Household disposable income: Yd = Y - T, where Y is production. Taxes depend ..
Consider the inter-temporal model of consumption of a household who has a first period income of 300 and a second year income of 330. The interest rate is 10%. The household saves 100 in period one. a) Write the budget constraint of period one and..
A small business that has taxable income of less that $50k purchases a machine for $10k. The machine yields an annual benefit of $5k over its 5-year life. Is the after-tax rate of return for this item closer to 5% or 12% Assume a straight-line de..
You and a classmate are assigned a project on which you will receive one combined grade. You each want to receive a good grade, but you also want to avoid hard work. In particular, here is the situation If both of you work hard, you both get an A, ..
Some have one year of formal training and earn the Refrigeration Mechanic Certificate if they pass the test at the end. Some take a second year of formal training and earn the Refrigeration Mechanic Diploma if they pass the test at the end. Traine..
What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a first withdrawal of $3,000 is made at the end of year 11 and subsequent withdrawals increase at the rate of 6% per year over the previous years rate if..
Rubax, a United States producer of athletic shoes, estimates the following linear trend model for shoe sales:
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