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In the text, we considered a sequential move game in which an entrant was considering entering an industry in competition with an incumbent firm. Consider now that the entrant, if fought, has the possibility of withdrawing from the industry (at a loss of 1 for the entrant and a gain of 8 for the incumbent), or saying (at a loss of 5 for each player). What is the equilibrium of this game? Discuss if the entrant is better off with or without the ability to withdraw.
Expalin why do many economists believe that the market system is the most efficient economic system for allocating resources.
An engineering student requires to replace the battery in her car so that she can drive home for a vacation after Spring Semester. She has located following possibilities:
The market for hog hats is competitive and demand is given through P=75-Q while supply is given by P=15+2Q. Determine the equilibrium price and quantity in this market?
Assume after 10 years real consumer spending doubles to 100. Explain how much do you believe will be the budget share of leisure.
Suppose that price level is flexible both upward and downward and that Fed's policy is to keep price level from either rising or falling.
Illustrate what is the short-run equilibrium real GDP and price level. Does Japan have an inflationary gap or a recessionary gap and what is its magnitude.
Suppose you are a manager of a monopolistically competitive company, and your demand and cost functions are given by Q=20-2P and C(Q) = 104 - 14Q + Q^2
Elucidate in Olipolistic terms, and with graphs, what is really happening. Shoud the US anti-trust laws be invoked in industries like this.
You are provided with the subsiquent transactions that took place during a current fiscal year.
Prefer this existence of incomplete specialization. Which is (are) inconsistent with the incomplete specialization we observe in China.
Elucidate what would social security payments have been in 2001 if the actual rate of inflation had been used.
Assume that a "leader country" has real GDP per capita of $40,000, whereas a "follower country" has real GDP per capita of $20,000. Next suppose that the growth of real GDP per capita falls to zero percent in the leader country and rises to 2 perc..
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