Explain increase or decrease profits of cigarette companies
On January 2, 1971, all cigarette advertising was banned on U.S. television and radio stations. Did this ban likely increase or decrease the profits of cigarette companies in 1971? Briefly explain.
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The market demand of a cellphone gadget is P = 70 - 2Q. Find the Nash equilibrium if the two firms engage in Cournot com- petition. Find the profit for each of the two firms.
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