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Two equal-sized newspapers have overlap circulation of 10% (10% of the subscribers subscribe to both newspapers). Advertisers are willing to pay $10 to advertise in one newspaper but only $19 to advertise in both, because they're unwilling to pay twice to reach the same subscriber. What's the likely bargaining negotiation outcome of the advertisers bargain by telling each newspaper that they're going to reach agreement with the other newspaper, so the gains to reaching agreement are only $9? Suppose the two newspapers merge. What Is the likely post-merger bargaining outcome?
1. For the each of the following functions: 1) find a function for an indifference curve that delivers u=u? units of total utility: 2) Calculate the derivative (dy/dx) of the function (i.e. the instantaneous rate of change). Find the total differe..
Provide an estimate of the cross-price elasticity of demand for gasoline, both with respect to new cars and with respect to used cars. Are these estimates statistically significant? Do they align with economic theory? Give an interpretation of y..
Consider Romer's model of endogenous growth. a). Suppose first that the production function is as follows: where f = 0.1 and f = 0. Using the equation in the text, what will be the growth rate of per capita income. what will be the growth rate of per..
A business license allows a firm to operate the business for one day. The city will auction up to seven business licenses to the highest bidders, and the auctioning licenses will continue as long as someone bids a positive amount for one of the li..
Two companies, Company A and Company B, are deciding whether each should implement a new pricing strategy, which may or may not result in a price war. If both companies reduce (discount) their current prices, each company will end up with $175K in ..
Vander's sells bicycle in a small shop on main thoroughtfare, and the manager has computed some numbers based on past sales of bikes. she estimates the demand curve to be P=80-2Q. costs are given by C=200+20Q.what numbers would you use to back up y..
Suppose the U.S. has 1200 hours of labor. It can produce two goods: passenger cars and personal computers. The unit labor requirement in the production of passenger cars is 1.5 hours and in the production of personal computers is 1 hour.
Determine the economic advantages or disadvantages, for the United States speaker company Bose, to start a distribution center in the Czech Republic?
Mr. Smith has a weekly income of M = $24. Initially the prices of X and Y are both $2/unit and Mr. Smith buys 6 units each of X and Y each week, a bundle on indifference curve I0. Then, ceteris paribus, the price of X increases to $4/unit, with th..
In the Keynesian cross, assume that the consumption function is given by: C=200+0.75 (Y-T). PLanned investment is 100, government purchases and taxes are both 100. a. Graph planned expenditure as a fraction of income. b. What is the equilibrium lev..
Abc Inc. sells bike tires for $25. It's sales have averaged 8,000 units per month. Recently its closes competitor Efg Inc. reduced their price for bike tires form $35 to $30. A result Abc's sales declined by 1.500 units per month.A. what is the ar..
A and 20 milligrams of vitamin B while minimizing cost. An ounce of oats contributes 8.5 milligrams of vitamin A and 1.2 milligram of vitamin B, whereas an ounce of rice contributes 6.4 milligrams of A and 2.2 milligrams of B. An ounce of oats cos..
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