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In a market with duopoly, if market demand is P=90-Q find the cournot reaction curves and the qournot quantity solutions in the case where marginal cost (MC=0) and the case where MC=30, what are the monopoly quantities in both cases? and which quantities are bigger Cournot or Monopoly?
What is the dollar value of the deadweight loss when output level Q3 is produced? What is the total surplus when output level Q3 is produced?
Give an example of how the Principle of Opportunity Cost applies to your life. Think of a recent decision you made. It could be a decision as simple as whether to eat out or cook your own dinner, or it could be a decision to quit your job and go back..
Find the monopolist's profit-maximizing quantity and price
In 1992, thirst Bush administration was worried about a lingering recession. The administration announced that households would receive a reduction in their taxes for the year 1992. However, this was not accompanied by a reduction in tax rates, and t..
Consider the timing: The incumbent chooses whether to invest; then the entrant observes the incumbents investment decision; then the firms compete in prices. Show that in subgame perfect equilibrium (SPNE) the incumbent does not invest.
who are well-known to be boring, stuffy types; what could be a better way to reinforce one's credentials as a radical, innovative thinker than to skewer their most beloved doctrine.
Gary has two children, Kevin and Dora. Each one consumes "yummiest" and nothing else. Gary loves both children equally.
Barney's Liquids and Aunt Bee's Lemonade plan to expand their international partnership for the marketing and distribution of ready-to-drink tea products by adding 11 countries to their current markets. If the agreement is reached, operations are exp..
Suppose the residents of Toadhop live on the Quabache River which is a river prone to flooding. Suppose there are 1000 (type A) people who value flood control more than 1000 (type B) people. If the citizens of Toadhop do not work together, what is th..
llustrate what are the quantities produced before and after the tax was imposed.
Les argues that the 10 year note is a better risk free rate at 2%. He also argues that the stock market is too high and the expected return is really only 5%. Assume that he is correct. The company has a beta of 1.6. What is the cost of equity?
Find out the total nominal money stock as measured by the Federal Reserve's definition of M1. What will happen to each of your answers to part a to e.
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