Questions
In an industry where demand is Q = 120 – P and two identical firms have...

In an industry where demand is Q = 120 – P and two identical firms have MC = AC = 30 find the Cournot and the Stackelberg equilibriums and compare the corresponding market outcomes. Do consumers have a preference for one market structure over the other?

In: Economics

Explain the difference between change in quantity demanded and a shift in demand. What causes changes...

Explain the difference between change in quantity demanded and a shift in demand. What causes changes in quantity demanded? What causes a shift in demand?

Please do not copy and paste,

In: Economics

summary on chapter 2 "The Return of Depression Economics and crisis of 2008" by Paul Krugman

summary on chapter 2 "The Return of Depression Economics and crisis of 2008" by Paul Krugman

In: Economics

What does "austerity" mean? What theoretical arguments lie behind its adoption as policy? What are the...

What does "austerity" mean? What theoretical arguments lie behind its adoption as policy? What are the counter arguments? What have been the effects, here and abroad? How much policy autonomy to countries have in a global economy?

In: Economics

how do entitlement programs differ from other programs?

how do entitlement programs differ from other programs?

In: Economics

Income    (Yd) Consumption Expenditure Saving Investment Expenditure Government Expenditure Net Export Expenditure Aggregate Expenditure $8000...

Income

   (Yd)

Consumption

Expenditure

Saving

Investment

Expenditure

Government

Expenditure

Net Export

Expenditure

Aggregate

Expenditure

$8000

$11,000

$2,500

$5,000

$12,500

  12,000

14,000

2,500

5,000

12,500

20,000

20,000

2,500

5,000

12,500

30,000

27,500

2,500

5,000

12,500

50,000

42,500

2,500

5,000

12,500

100,000

80,000

2,500

5,000

12,500

Calculate savings, autonomous consumption, MPC, MPS, break even income, and the equilibrium level of income (Y = AE = C + I + G + NX) in the above given information.

Draw a graph showing disposable income (Yd) on the horizontal axis and aggregate expenditures (AE)

on the vertical axis with a 45 degree line. Graph consumption curve (CC) and AE (AE = C + I) curve on this graph. Indicate equilibrium level of income on this graph.

You can draw the graph by hand but label the axis and the curves clearly.

In: Economics

The following events shift either the supply or demand curve for American-made automobiles. Draw a set...

The following events shift either the supply or demand curve for American-made automobiles. Draw a set of market supply and demand curve that illustrates each of the following historical events: Serious strikes hit the auto industry during the 1930s. During World War II, producers of automobiles converted their factories to war production. In 1973, oil prices rose dramatically. Pick-up trucks, mini-vans, and recreation vehicles gained popularity in the 1980s, and many families bought such vehicles rather than automobiles.

In: Economics

Consider the following hourly demand and cost schedule for a firm facing a fixed price of...

Consider the following hourly demand and cost schedule for a firm facing a fixed price of $ 6.00 per unit. (Tπ, is Total Profit).

  Q    P             TR    MR    TFC       TVC          TC         MC           ATC          AVC         Tπ

                                                                                                                                                             

  0    $6.00                                                               $2.00            

  1                                                           4              

  2                                                           6              

  3                                                           8             

  4                                                           11             

  5                                                           15                     

  6                                                          20             

  1.                                                       26             

8                                                           33           

  9                                                           41           

10                                                       50

11                                                       60

                                                                                                                                      

  1. Complete the columns for ATC, AVC, and MC as well as those for (TC), TVC, & TFC.  
  2. Draw the curves for Demand, MR (Marginal Revenue), ATC, AVC, and MC, all in one diagram. Also draw the Total Revenue (TR), Total Cost (TC), TVC, and TFC in a second diagram right below the first one.

  1. Determine, in order to maximize profit, how many units should this firm produce and why?
  2. Calculate the total profit at the profit-maximizing level and demonstrate it graphically and geometrically in the diagrams wherever applicable.

In: Economics

Would it be better to have a permanent location for the Olympics? Do you think Colorado...

  • Would it be better to have a permanent location for the Olympics?
  • Do you think Colorado would benefit economically from hosting the Winter Olympics?

In: Economics

Suppose the outcome of the US presidential election causes a stock market crash in China. Using...

Suppose the outcome of the US presidential election causes a stock market crash in China.

Using the model of aggregate demand and aggregate supply, identify the changes in GDP.

In: Economics

how do marketers use Youtube Trueview to promote their brands

how do marketers use Youtube Trueview to promote their brands

In: Economics

Consider the Cournot competition example in the lecture notes. Inverse demand function is P(Q) = 31...

Consider the Cournot competition example in the lecture notes. Inverse demand function is P(Q) = 31 ? 2Q. However, make the change that firm B’s cost function is CB(Q) = 2Q. Firm A’s cost function remains the same at CA(Q) = Q.
a) Determine firm A’s best response function Q*A (QB).
b) Determine firm B’s best response function Q*B (QA).
c) How much quantity is each firm producing in the Cournot
d) What is the price at which output goods are sold in the Cournot Nash equilibrium? Carefully argue your answer.
e) How much demand is firm A facing in the Cournot Nash equilibrium?

In: Economics

1. If the monopsony firm is a single-wage firm, then to hire more workers, the firm...

1. If the monopsony firm is a single-wage firm, then to hire more workers, the firm _____.

a. must reduce wages

b. must pay the new workers more

c. must raise the wages of all workers

d. will not change any wage

2. The local tennis stadium has a fixed number of seats for spectators. The equilibrium price to attend games for the Men's Championship is $15 and for Women's Championship is $25. Which of the following is true?

a. Women's games must be more expensive to stage than men's games.

b. The demand to attend women's games must be greater than that to attend men's games.

c. The supply of men's games must be less elastic than the supply of women's games.

d. The demand to attend women's games must be less than that to attend men's games.

3. Oligopolies face constraints like other markets; however, the one difference is that oligopolies face _____.

a. a vertical demand curve

b. a horizontal demand curve

c. a positively sloped demand curve

d. reactions of rival firms

4. Two or more oligopoly firms that act jointly is called a _____.

a. joint oligopoly

b. concentration

c. cartel

d. collision

5. Compared to a perfectly competitive industry with similar costs and demand, the single-price monopoly will produce _______ and its deadweight loss will be _______.

a. more; greater

b. more; less

c. less; greater

d. less; less

In: Economics

Do you think differences in the exchange rate will keep the NFL from expanding into Europe?...

  • Do you think differences in the exchange rate will keep the NFL from expanding into Europe?
  • What do you think is the best way for a state or local government to subsidize a professional sports stadium?

In: Economics

Distinguish between point estimate and confidence interval. How do you construct confidence interval when population SD...

Distinguish between point estimate and confidence interval. How do you construct confidence interval when population SD is known and unknown?

In: Economics