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Consider the Coke and Pepsi example discussed in the chapter.
a) Explain why each firm's reaction function slopes upward. That is, why does Coke's profit-maximizing price go up the higher is Pepsi's price? Why does Pepsi's profit-maximizing price go up the higher Coke's price is?
b) Explain why Pepsi's profit-maximizing price seems to be relatively insensitive to Coke's price. That is, why is Pepsi's reaction function so flat?
A household's decision about what quantity of an output or product to demand depends on a number of factors. List them.
What is the difference between the interest rate on one-year dollar deposits and that on one-year euro deposits (assuming no repayment risk)?
Discuss what you have learned during the the classical argument paper assignment and how it will assist you in upcoming papers.
What is Bob's average annual earnings. In the previous question, what is the standard deviation of the annual salary? What is the probability that John will get 2 tickets during the week (Monday-Friday)?
There are two firms that engage with a Cournot competition with the inverse demand curve given by P=1000-5Q. Suppose the two firms have constant marginal costs $5 and $10. a). Write down the profit function for each firmb). Firm 2 produces 10 units, ..
What are the elements contained in this memorandum?
If the marginal propensity to consume for an economy as a whole is 0.75, what is the simple multiplier equal to? If governments spend 1 billion dollars, how does this translate into a greater than a $1 billion impact on the economy.
Examine the major complexities that would arise under expansion via capital projects. Propose key actions that the company could take in order to prevent or address these complexities.
Evaluate whether management's controls operated effectively.
question 1. consider the multiple regression modelsuppose that assumptions mlr.1-mlr4 hold but not assumption mlr.5a
Characterize the asymptotic equilibrium of the modified Solow/AK model mentioned in Section 2.6, with a constant saving rate s, depreciation rate δ, no population growth, and an aggregate production function of the form
Why do they not expand indefinitely?
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