Consider an oligopoly with 2 firms. The inverse demand curve is given by P = 100 – Q₁ – Q₂. Firm 1’s total cost function is TC₁ = 30Q₁. Firm 2’s total cost function is TC₂ = 20Q₂. Assume now that the firms compete by choosing their prices simultaneously, so it is a Bertrand Oligopoly model. Assume that firms choose prices in 0.01 in intervals. (i.e. A firm can choose to charge $10.00 or $10.01, but not $10.005).

a) Consider the case where firm 1 chooses P₁ = 30 and firm 2 chooses P₂ = 20. Argue whether this is or is not a Nash Equilibrium.

b) Consider the case where firm 1 chooses P₁ = 30.01 and firm 2 chooses P₂ = 30. Argue whether this is or is not a Nash Equilibrium.

Consider a competitive market with 12 firms. 6 of these, which we call Type 1 firms, have the below cost structure:

                             C₁(Q)=Q²+Q+5

and the remaining 6 firms, which we call Type 2 firms, have the following costs:

                            C₂(Q)=0.5Q²+Q+20

The market demand is given by

                            D(P)=183-3P

Use this information for questions 1-17.

1) Derive the supply function of each Type 1 firm. Show all steps.

2) Derive the supply function of each Type 2 firm. Show all steps.

3) Derive the total supply function. Show all steps.

4) Find the surplus of a Type 1 firm if the market price is equal to $6. Show all steps.

5) What is the competitive price?

6) What is the competitive output?

7) How much output does a Type 2 firm produce at the competitive price you found in Q5?

8) How much profit does a Type 2 firm make at the competitive price you found in Q5?

9) What is the consumer surplus?

10) What is the producer surplus?

11) With the intention of supporting producers to liven up the economy, the government commits to buying 60 units of the good at whatever price the producers charge them. What is the new competitive price after the government support? Show all your steps.

12)What is the new competitive output after the government support?

13)How much does the program cost the government?

14) What is the consumer surplus after the government program?

15) What is the producer surplus after the government program?

16) What is the deadweight loss caused by the government program? Show all work.

17) In this market:

Who is better off after the government program? Consumers or producers or both?

Who is worse off after the government program? Consumers or producers or both? Explain your answer.

Show the Edgeworth box fully labeled Jason and Clay love cheese and cola. Jason has an initial endowment of 4 bottles of cola and 1 cheese bar. Clay has an initial endowment of no cola and 5 cheese bars. They have no other assets and make no trades with anyone other than each other. For Jason, utility function is Cobb-Douglas, U(x, y) = xy, where x is the number of the bottles of cola and y is the number of cheese bars he consumes. For Clay, cola (x) and cheese bar(s) (y) are perfect complements, his utility function is U(x, y) = min(x, y). (a) Draw the Edgeworth box with cola (x) on the horizontal axis and cheese bar(s) (y) on the vertical axis. Measure Jason's consumption from the lower left corner of the box.

Two players take turns taking sticks from a pile of 16 sticks. Each player can take at most 3 sticks and at least 1 stick at each turn. Whoever takes the final stick wins the game. Describe in words the optimal strategy for each player. Is there a first-mover advantage in this game? Is there a second-mover advantage?

16. When a tax on a good is applied to the supplier and the supply is relatively more elastic than demand, but neither is completely elastic or completely inelastic, who pays the greater share of the tax? (select the single answer that is most correct) Group of answer choices

A. Producers pay the entire tax.

B. Consumers.

C. Producers.

D. Consumers pay the entire tax.

17. 2 pts What is the primary characteristic that determines whether the consumer or the producer pays more of a given tax on a good? (select the single answer that is most correct) Group of answer choices

A. The relative elasticity of supply and demand for the good.

B. Whether the tax is applied to the consumer or the producer by the government.

C. How high the price is.

D. The intent of the citizens.

18. 2 pts What is generally considered the result of international trade? (select the single answer that is most correct) Group of answer choices

A. Overall the domestic country suffers because those who benefit have smaller gains than the losses from those who suffer.

B. There are only winners with international trade.

C. Overall the domestic country benefits because those who benefit have greater gains than the losses from those who suffer.

D. There are only losers with international trade.

19. 2 pts Given that only capital is fixed in the short run, how is the correct long run average cost curve chosen? (select the single answer that is most correct) Group of answer choices

A. The curve that demonstrates the highest cost at the optimal quantity.

B. The curve that generates the lowest revenue at the optimal quantity.

C. The curve that generates the highest revenue at the optimal quantity.

D. The curve that demonstrates the lowest average cost at the optimal quantity.

20. 2 pts What is the general relationship between marginal cost and marginal product? (select the single answer that is most correct) Group of answer choices

A. Marginal cost increases much faster than marginal product increases.

B. As marginal product increases marginal costs decrease.

C. As marginal product increases marginal costs increase.

D. Marginal cost increases much faster than marginal product decreases.

You have purchased a machine costing

​$27 comma 00027,000.

The machine will be used for two​ years, and at the end of this​ time, its salvage value is expected to be

​$12 comma 00012,000.

The machine will be used

4 comma 0004,000

hours during the first year and

6 comma 0006,000

hours during the second year. The expected annual net savings will be

​$34 comma 00034,000

during the first year and

​$40 comma 00040,000

during the second year. If your interest rate is

1414​%,

what would be the equivalent net savings per machine​ hour?

Are markets a good mechanism for society to use to allocate oil use over time?

You are an economic consultant for XYZ Corporation who reports to the VP of Finance, Maria Horowitz. You learned that multiple departments of your company are collaborating to create a presentation for a prospective client that explains how XYZ Corporation can help them improve their business. Maria has been asked to present on several financial aspects of an organization. She tasks you with developing the sections of the presentation relating to globalization. The potential client, named Fourevr Enterprises, mentions it mostly operates domestically, both in terms of production and selling, because it is unfamiliar with and apprehensive to engage in globalization efforts.

• How does international trade affect Fourevr, both domestically and in international markets?
• How can existing or potential changes in trade policies affect Fourevr’s operations?

Both markets and governments are inefficient. Explain why economists are concerned with the inefficiency and offer a compelling economic argument as to how to minimize inefficiency

Describe local and global conditions that give rise to acts of terrorism. What conditions give rise to terrorism? How do transnational crimes and funding overlap and flow?

how does the UN aid in international peacekeeping

Should the corporation have legal and ethical obligations to society beyond promoting the private interests—maximizing profits—of shareholders? Compare Friedman’s critique of the doctrine of social responsibility with Glasbeek’s. Use Garrett and Steinbeck to illustrate these arguments.

define the social and detailed division of labor in reference to Braverman. provide examples as well for each of them

thank you

Stating that inflation is purely a monetary phenomenon can generate controversy. Inflation arises when the money supply is increased relative to the demand for money.

Could the real interest rate be negative in practice? How about the nominal interest rate?