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Two firms producing identical goods choose prices simultaneously. Marginal cost for each firm is a constant 10 per unit. What is the Nash equilibrium in prices?
The Dijon Company’s total variable cost function is: What is the output level where marginal cost is at minimum? What is output level where average variable cost is a minimum?
Will the equilibrium price of orange juice increase or decrease in each of the following situations? Explain and graph each situation. A medical study reporting that orange juice reduces cancer is released at the same time that a freak storm destroys..
For each of the following utility functions, calculate the MRS. For each utility function, plot a representative indifference curve for a utility level equal to 2. Not every point on your indifference curve needs to be accurate.
An alternative to rent-control laws that would not reduce the quantity of housing supplied is:
Suppose a monopolist faces the following demand curve: P=596-4Q. Marginal cost of production is constant and equal to $60, and there are no fixed costs. how much profit will the monopolist make if she maximizes her profit?
Analyze the major short run and long cost functions for the low-calorie, frozen microwaveable food company given the cost functions below. Suggest substantive ways in which the low-calorie food company may use this information in order to make decisi..
What would happen to world welfare if the U.S. paid exporters a subsidy of $5 for every pair of blue jeans they sold to Canada, but Canada charged a $5 countervailing duty on every pair imported into Canada?
Suppose that two recent studies conclude that increased fiber in the diet does not reduce the risk of developing colon cancer as was previously thought. The likely result will be that the:
Select a market for a product or service, then identify at least one critical determinant of demand or supply in that selected market and forecast a reasonable future change in the determinant. Explain the changes in equilibrium price and quantity yo..
The classic example of opportunity cost is the costs of going to college. Illustrate the implicit opportunity cost of foregone income as well as tuition, books, etc. Think about whether room and board should be considered a cost of college. Calculate..
Assume that land is specific to timber, capital is specific to televisions, and labor is free to move between the two industries. When the Home country moves into doing free trade with the Foreign country, the price of TV rises in Home and the price ..
Suppose that a lottery winner deposits $5 million in cash into her transactions account at the Bank of America. Assume a reserve requirement of 20 percent and no excess reserves in the banking system prior to this deposit. Show the changes on the Ban..
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