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The Cournot model with two companies that produce homogenous good, Company A and Company B. The market demand is given as P = 40 - Q, P = price, Q = total (aggregate) quantity. The MC (marginal Cost) of Company A equals to $2 and constant. The MC (marginal cost) of Company B equals to $4 and constant. Companies have no fixed cost.
a) What is equilibrium quantities.
b) What is equilibrium profits.
Using supply and demand and competitive analyses, explain what happens to a pharmaceutical company’s revenues and profits from an individual drug once it loses its patent protection. Then identify at least one strategy the company can use to mitigate..
Illustrate what factors contributed to Hong Kong Disney's poor performance during it's 1st year
Combining what we learned from the quantity theory with what we learned about the fisher effect, we expect to see that, when a nation's M2 growth rate increased by 5%:
The political business cycle implies all of the following EXCEPT that:
"To sum up: politically speaking, it is insufficient to say that power and violence are not the same. Power and violence are opposites; where the one rules absolutely, the other is absent. Violence appears where power is in jeopardy, but left to its ..
Pick the last 2 business cycles as identified by the National Bureau of Economic Research. Explain the behavior of the following variables during each of these cycles- unemployment, inflation, GDP Growth.
Use appropriate graphs and provide clear explanation ( using relevant economic theories and discussions ) for the likely economic impact of each case. Imposition of sales tax to reduce consumption of tobacco among those who are heavily addicted to us..
To get your MBA, you must take 20 courses. You can take 8 courses per year (2 courses per quarter including a summer semester). A course costs $3,500. Your company offers tuition reimbursement for 2 courses per term. Your company deposits $7,000 in a..
In the short-run, real GDP can be greater than or less than potential GDP because in the short run the
To maximize? profit, the firm chooses the quantity of output that generates the largest:
Allysha just borrowed 46,300 dollars. She plans to repay this loan by making a special payment of 5,800 dollars in 5 years and by making regular annual payments of 7,900 dollars per year until the loan is paid off. If the interest rate on the loan is..
A typical customer who buys from a firm has a demand given by P = 90 - 3 Q. The firm has a constant marginal cost MC = $18 and no fixed cost. “Buy the first 7 units at a price of $75 per unit, and any subsequent unit at a price of $54 per unit.” Com..
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