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An industry consists of two firms with identical costs C(q) = 5q +q2=2. The firms can either collude or compete. If both collude, they each produce qm (half the monopoly output Qm). If one rm colludes and the other competes, the latter produces the output q? that maximizes its prots given that the other firm produces qm. If both compete, they play Cournot and each produce qn. Calculate these outputs and the resulting prots if market demand is Q = 125 ?? p. Represent your results as a normal-form game. What is the Nash equilibrium if the game is only played once?
Assume that two companies (C and D) are duopolists that produce identical products. Demand for the products is given by the following linear demand function: P=600-QC-QD QC and QD are the quantities sold by the respective firms and P is the sellin..
Given below are the cost schedules for a perfectly competitive firm. Average Average Variable Total Marginal Quantity Cost Cost Cost 1 $ 50 $ 90 $ 50 2 45 65 40 3 40 53 30 4 35 45 20 5 34 42 30 6 35 41 40 7 37 43 50 8 40 45 60
The last ones are wrong or I am getting repeated answers for the wrong question. An automatic saw at a local lumber mill cuts 2 by 4 to an average length of 120 inches. However, because the saw is a mechanical device, not all the boards are 120 in..
Suppose this person has $300 in period 0. How much will they consume in each period? Show your math. (Set the discounted marginal utility of consumption between period 0 and 1 equal, and also the discounted marginal utility of consumption between ..
A security analyst specializing in the stocks of the motion picture industry wants to determine the relationship between the number of movie theater tickets sold in December and annual level of earnings in the motion picture industry.
Suppose households consume 80% of their disposable income. The government is considering three actions to help increase GDP: increasing government spending, cutting taxes, or increasing fixed transfer payments. If the government increases transfer..
The following function describes the demand condition for a company that makes caps featuring names of college and professional teams in a variety of sports. Q = 2,000 - 100 P where Q is cap sales and P is price. a) How many caps could be sold at $..
You are a monopolist selling bowties for dogs. If B is the number of bowties, you have a total cost given by C=(B^2)/2 and a Marginal cost given by MC=B. The market for bowties is characterized by an inverse demand curve of P=90-B.
Compare and contrast the economic performance of the American economy of 2001 with the economic performance of the 1996 to 2001 period. Use the appropriate aggregate demand and aggregate supply curves
Consider the following data set on the price and quantity of various commodities for 2008 and 2013. Calculate the GDP deflator. What are the values for the Laspeyres and Paasche indices? Is any of the price indices clearly better?
w=10, r=25. The price of output is constant at $50. The production function is f(L,K) = L^.5K^.5.If the current capital stock is fixed at 1600 units, what is L* in the short run How much profit will the firm earn
annual savings due to an energy efficiency projects have a most likely value of $30,000. the high estimate of $40,000 has a probability of .2, and the low estimate of $20,000 has a probability of .3. what is the expected value for the annual savin..
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