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If they charge the same price in each market, what should be the quantity sold in each market, equilibrium price, total profit?
Question 1: Determine the market price of the capital goods and the market rate of interest on loans. Question 2: How will the market price of the capital good and the market interest rate vary with
Task: Determine the Market Structure. Exhibit depicts indicates the demand and cost conditions facing a firm. Question 1: Label all the curves and axis on the graph. Is this firm a price-taker or a
How much revenue is XYZ making? What are the costs? What is the profit? Will the company stay open in the short run? Provide intuition for your answer. Show on the graph and explain what will
1) Explain the incentives of each firm for introducing new models in this market. Be sure to point out any outcomes with a "collusive" structure. 2) Which outcomes constitute a Nash Equilibrium?&nbs
Problem: The question asked that suppose that the consumption function in a particular economy is given by the following table:
Suppose a monopolist faces the market demand function P = a - bQ. Its marginal cost is given by MC = c + eQ. Assume that a > c and 2b + e > O. a) Derive an expression for the monopolist's opti
Suppose that American chooses to carry 660 passengers per day (i.e., QA=660). What is United’s profit maximizing quantity of passengers? Suppose American carries 500 passengers per day. What i
A) Describe the Nash equilibrium (or equilibria) for this sequential-move game. Explain your reasoning. B) Identify a subgame perfect Nash equilibrium for this game Explain your reasoning.
Taxes can obviously affect firms' costs. Explain how each of the following taxes would affect total, average, and marginal cost. Be sure to consider whether the tax would have a different effect dep
If price is equal to short-run average variable cost, the firm is at the point known as A- the break even point. B- the profit maximizing point. C- the shutdown point. D- the revenue maximizing point.
Problem 1: Carefully explain and show graphically how each of the following changes would effect the shape of the IS curve:
One might expect firms in a monopolistically competitive market to experience greater swings in the price of their products over the business cycle than those in an oligopoly market. However, fluctu
Explain which of these changes represent a move along the IS curve and/or which represent a shift of the IS curve and why.
Q1. Calculate a marginal cost and an average cost schedule for the firm. Q2. If the prevailing market price is $17 per unit, how many units will be produced and sold? What are profits per unit? What
Suppose Firms A and B sells competing products and is deciding whether to undertake advertising campaigns. Each firm will be affected by its competitor decision. The possible outcomes of the game ar
Suppose that inventory growth in the U.S. is unexpectedly high this year. What is likely to happen to output next year, and why? Is the economy currently in equilibrium?
Use the graph to help you algebraically determine the amount of consumer and producer surplus with rent control.
In the short run, a perfectly competitive firm____ earn an economic profit and ____ incur an economic loss
Suppose that the city eliminates its restrictions on video arcades, allowing additional firms to enter the market, "Each additional video arcade will decrease the price of games by $0.02 and increas
The inverse market demand curve is P=140-Q, and the inverse supply curve is P=20+Q. Now suppose a commodity subsidy of $20 is given for each unit of production. In this new distorted market equilibr
Suppose the Minot City Council deemed that the price of housing is too high and institute a price ceiling (rental control) of $450. Discuss the market consequence of the price ceiling: i
Suppose that, from an initial consumer equilibrium position, the price of good X falls while the price of good Y remains the same. Using indifference curve analysis, explain how and why the consumer
The primary difference between a change in supply and a change in the quantity supplied is
What is the firm’s profit-maximizing price-quantity combination now? What are the firm’s profits?