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The soft drink industry is a duopoly with differentiated products. Two firms, Coca-cola and Pepsi, compete through Cournot quantity-setting competition. Denote the quantity that Coca-cola and Pepsi
There are economies of scale in ranching, especially with regard to fencing land. Suppose that barbed-wire fencing costs $10,000 per mile to set up. How much would it cost to fence a single property
Kindle tablet vs Ipad 2. There is rumor on the market that Amazon will release a new tablet device called Amazon Kindle, which will become a competitor of Ipad 2 from Apple. Let us consider a sequen
What is a government budget deficit How does a federal budget deficit affect the economy How does it affect the level of investment and interest rates How does it affect the individual consumer
Compare the automotive manufacturing industry of today to the automotive manufacturing industry of the 1950s. Applying the enconomics of price and output, what is the difference between the industry
Suppose, instead of a constant velocity money demand function, the velocity of money in this economy was growing steadily because of financial innovation. How would that affect the inflation rate Ex
Three friends (Julie, Kristin, and Larissa) independently go shopping for dresses for their high-school prom. Upon reaching the store, each girl sees only three dresses worth considering: one black,
Susie is at the grocery store buying milk. She has a choice between milk from Dairy A or milk from Dairy B. She doesn't actually care at all which dairy her milk comes from. (a) Draw a possible indi
As part of the marketing campaign, EML produced a video tape sales presentation to send to both owners of current EMLfour-wheel-drive vehicles as well as to owners off our-wheel-drive sports utility
Compute the monopolist's optimal price and quantity under the assumption that the monopolist is a quantity setter, i.e. the monopolist chooses the quantity that maximizes its profits. We refer to th
Choose a macroeconomic issue of current interest for which you can find two editorial or op-ed columns from national or international newspapers or magazines that take differing positions on the iss
Using the numbers given in the table below, calculate the Taylor Rule interest rate for 2005. What would the Taylor Rule suggest about actual U.S. monetary policy that year
For many firms, production takes place in two or more different plants whose operating costs can differ. In this question you will be asked to set up a multiple plant monopolist optimization model a
Identify two government programs, at a national level, that you would definitely change. Explain why and how you would change them. What are the marginal benefits and marginal costs of each changed
Identify the flaw in this analysis: "If more Americans go on a low-carb diet, the demand for bread will fall. The decrease in the demand for bread will cause the price of bread to fall.
Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. As a policy maker concerned wit
Because bagels and cream cheese are often eaten together, they are complements. We observe that both the equilibrium price of cream cheese and the equilibrium quantity of bagels have risen.
Suppose that prisons historically have required prisoners to perform, without pay, various cleaning and food preparation jobs within the prison. Now, suppose that prisoners are offered paid work in
Consider that this product is to receive no promotion other than what the retailer will give it, and the product will be offered at a competitive price. Assume the new diaper's name will not be asso
Over the last 30 years in the United States, the real price of a college education (i.e., after adjusting for inflation) has increased by almost 70 percent. Over the same period, an increasing numbe
A recent news story reported that OPEC is expected to decrease the supply of oil next summer. Summer is traditionally a time of increased demand for oil because of the many families driving and flyi
Explain the difference between the incentives of the owner of a house and renter of a house to undertake expenditures designed to improve or maintain the house. For example, are renters more likely
Explain whether the following government activities is motivated by a concern about equality or a concern about efficiency. In the case of efficiency, discuss the type of market failure involved- re
The firm provides the equipment and supplies necessary to do the work. It also supervises the workers on the clients' premises. Client A reserves the right to direct the staffing firm workers to per
On her employment application, Rhonda disclosed that she had been convicted of 2 misdemeanor larceny. Those convictions made it unlawful for her to become an employee of Midwest without FDIC approva