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Assume there is a duopoly with the following demand equations Q1=30-P1+P2 and Q2=30-P2+P1. Marginal cost are given as MC1=6, MC2=0. Calculate the Bertrand solution. What are the reaction curves?
What is price, quantity and revenue for each firm.
Assume a firm has a patent on one of its products whose sale generates $32,700/year more revenue than production costs. If the annual interest rate is 20 percent, what is the market value of this patent.
Draw the production possibility curve and a. Define consumer surplus and producer surplus.
If expected inflation is constant and the nominal interest rate increases, how does the real interest rate change?
Illustrate what will be the level of output and price in the long run if this industry were perfectly competitive.
If the incremental federal income tax rate is 34% and the incremental state income tax rate is 6%, what is the effective combined income tax rate (t)? if the satiate income taxes are 12% of taxable income, what now is the value of t?
Wilderness Adventures has earnings per share of $2.45 and dividends per share of $1.05. The total equity of the firm is $850,000. There are 40000n shares of stocks outstanding. What is the sustainable rate of growth?
What role does Mudaraba allow IAH, in their capacity as Rabbul Mal.
Seven years ago a New Brunswick logging company purchased a used wood chipper for $141,600 for biomass and custom chipping. Operating and maintenance costs averaged $4,100 per year. A complete overhaul at the end of year 4 cost additional $12,000. An..
What is the difference between GDP and National income? How do both (GDP & National income) relate to economic growth? Explain.
In a country, private savings equals 600, the government budget surplus equals 200, and the trade surplus equals 100. What is the level of private investment in this economy?
An increase in capital per worker will: Technological progress will: If technology advances, then:
The deadweight loss of taxation increases with the square of the tax rate. Explain this proposition. What are its implications for the design of a value-added tax such as the GST in Canada? Is this a case in which efficiency considerations are diamet..
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