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In the initial Bertrand equilibrium, two firms with differentiated products charge the same equilibrium prices. A consumer testing agency praises the product of one firm, causing its demand curve to shift to the right as new customers start buying the product. (The demand curve of the other product is not substantially affected.) Use a graph to illustrate how this new information affects the Bertrand equilibrium. What happens to the equilibrium prices of the two firms?
Suppose that the production function is Y= 9K^0.5 N^0.5 With this production function, the marginal product of labor is MPN= 4.5K^0.5 N^-0.5. The capital stock is K= 25. The labor supply curve is NS= 100(1-t)w]^2, where w is the real wage rate, t ..
Frequently we read in the newspaper that one should lease a car rather than buying it. For a typical 24-month lease on a car costing $9400, the monthly lease charge is about $267. At the end of the 24 months, the car is returned to the lease compa..
With the help of examples, explain how the people management practices at SAS Institute are different from the practices followed by many of its competitors in the Silicon Valley.
What is the equilibrium of this game
What is meant by the term risk/return trade-off ?
The deadweight loss of a tax is the area of the triangle between the supply and demand curves. Solve for the deadweight loss as a function of T. Graph this relationship for T between 0 and 300. (Hint: Looking sideways, the base of the deadweight l..
Dr. Leona Williams, a well-known plastic surgeon, has a reputation for being one of the best surgeons for reconstructive nose surgery. Dr. Williams enjoys a rather substantial degree of market power in this market.
From the BET constants obtain the surface area of the soil and the adsorption energy for benzene on this soil.
After few years, cost of production of Panadol increased due to increase in price of paracetamol (one of the main ingredient used in the production of Panadol). Due to this increase people started using Disprine instead of Panadol.
In positive psychology, how does the concept of hope go beyond "sunny advice"? Why may hope be particularly relevant to entrepreneurship and international human resource management?
1. The three fundamental economic questions of what, how, and for whom: a-exist because of scarcity. b-are much more serious in a socialist system. c-are not serious in a capitalistic system. d-are not relevant in the industrialized world of today.
The design of a system is to be pursued from one of the available alternatives. Each alternative has a life cycle cost associated with an expected future. The costs for the corresponding futures are given in the following table (in millions of dol..
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