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Firm 1 has a unit cost of production c1 equal to 6 whereas firm 2 has a higher unit cost of production c2 equal to 10. what is the Bertrand-Nash equilibrium outcome?
"Suppose that for the quadratic total cost function in the preceding problem, a=100, b=6, and c=1. At what output level is average total cost minimized?
Assuming that the market for music CDs is monopolistically competitive, which model do you think is more appropriate for analysis of that market: the representative consumer model or the location m
The Callaway Company's cost of equity is 22%. Its before-tax cost of debt is 13%, and its marginal tax rate is 40%. The firm's capital structure calls for a debt-to-capital ratio of 45%. Calculate
What might happen to price expectations with the policy case you defend and how may these expectations affect the outcome of your policy initiative?
The following shows interest rates and exchange rates for the U.S dollar and the Philippine peso in 2007. The spot exchange rate is 47.46 pesos= $1. Compute the missing entries:
Which model do you think is more appropriate for analysis of that market: the representative consumer model or the location model?
How they might be seen as complements? How might trade barriers (or lack of trade barriers) be related to this question?
Derive the best response function for each firm. Do these indicate that prices are strategic substitutions or strategic complements?
Show and explain what happens to real interest rates and real domestic investment in the market for loanable funds if there is a decrease in capital inflow from abroad.
What are the basic steps in solving for a Walras Equilibrium with two consumers and two commodities, given endowments and preferences for both consumers?
Determine Consolidated's total profit function. what are the profit-maximizing price and output levels? What is Consolidated's total profit under this condition?
Graphically depict the deadweight loss caused by a monopoly. How is this similar to the deadweight loss from taxation?
What does this ERP value calculated in part d imply for the tariff structure of mobile phones? Would you expect to see tariff escalation take place? Briefly explain.
If the domestic market is perfectly competitive, find the equilibrium price and quantity of rice. Compute the triangular areas of consumer surplus and produces surplus.
Assume that C1 is on the horizontal axis and C2 is on the vertical axis. What is the present value of the total consumption available? What is the market interest rate?
By how much does the price rise after trade is restricted by the quota? What are the quantity supplied, quantity demanded and amount imported with the quota?
If South Africa's exports to the USA increases, how will the value of the rand? how will a depreciation of rand influence our exports and imports.
With the help of AD and AS, show a recessionary gap. What kind of government policy would you recommend to deal with that problem? Explain. Can non-diacretionary fiscal policy remove a recessionary
In the long run purely competitive firms will A. Only make a normal profit, as economic profits will attract new firms, which will increase industry supply and decrease the price below levels.
Suppose the total banking system has $60 million in deposits, a required reserve ratio of 20 percent, and total bank reserves for the whole system of $90 million. Then the potential deposit creation
"To counter-act the effect of austerity measures (run by the government) on output in the short run, the central bank should run expansionary monetary policy. "
If it is interpreted to mean average variable cost, is the statement correct? If it is interpreted to mean marginal cost, is the statement correct?
Why do you think politicians in Indonesia tried to block Cemex's attempt to gain majority control over Semen Gresik? Do you think Indonesia's best interests were served by limiting Cemex's FDI in t
Assume the world price of hats is $30. If this country opens its market to free trade, what are the quantity supplied, the quantity demanded and the quantity of imports? Show all your calculations.