Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
There are 2 firms in the industry. if both firms charge a high price, they both earn 10 units of profit. if both charge a low price, they both earn 5 unit of profit. if one firm charges a low price while the other charges a high price, then the low-price firm earns 30 units of profit, and the high-price firm earns 0 units of profit.
(a) Write the payoff matrix for this interaction, in this format.
Firm 1 high price? low price?Firm 2 high price? low price?
(b) Find the equilibrium outcome when the firms interact only once.
(c) The firms consider a collusion. Each firm knows that the other firm will cooperate as long as they have not been cheated. Once cheated, each firm will not cooperate ever again. You are firm 1. Your discount rate is 0.3. Compare the present value of cooperating to the present value of cheating this period.
(d) Find the highest discount rate that still deters you from cheating.
Show the new utility maximizing bundle of gasoline and all other goods. What is the slope of the new budget line? What is the consumer's new MRS of all other goods for gasoline?
Understanding the International Macroeconomy, According to the Solow growth model, there are two reasons why an increase in total factor productivity leads to an increase in output. What are those two reasons?
Illustrate what will happen to the wages of IT professionals when there is a glut of workers. In terms of supply and demand, what can individual IT professionals do to increase their wages.
Find out the average total cost and average variable cost as a function of the level of output. Assuming the firm has the same cost curves in the long-run for q>0 and C (0) =0, how much will it produce in the long-run?
Utilizing aggregate demand, short-run aggregate supply, and long-run aggregate supply curves, explain the process by which each government policies will move the enconomy from one long-run macroeconomic equilibruium to another.
Suppose you are the manager that sells a commodity in a market that is, for all intents and purposes, a perfectly competitive market.
Suppose you earn $1 million over your working life and the real interest rate for retirement saving is 50%. How much will you save and how much will you consume in each part of your life?
The agricultural market for corn usually can be characterized as a purely competitive industry. How might the following events affect the shot-run cost curves and output for a firm in the industry?
Determine some of the models that predict the EFFECT that decreasing protection of imports will have on FACTOR PRICES? Briefly describe the effects shown by these models.
What is the saving function? What is the marginal propensity to save and what is the aggregate expenditure function? What is autonomous expenditure? What is the marginal propensity to withdraw?
A symetric information can have deleterious effects on market outcomes. Discuss a few tactics that managers can use to overcome these problems.
The Los Angeles retail market for unleaded gasoline is fiercely value competitive. Suppose situation faced by a typical gasoline retailer when the local market price for unleaded gasoline is $2.50
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd