1. Suppose there are two identical firms A and B facing a market demand P=100-2Q. Both firms have the same marginal cost MC=4.

1. Assume that firms are Cournot-competitors (in quantity). Find the equilibrium price, quantity and profits.
2. Assume that firms are Stackelberg-competitors (in quantity) and Firm A is the leading firm. Find the equilibrium price, quantity and profits.
3. What general conclusions can you derive from the answers that you found in (a) & (b)?

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Question 1

Economies of scale change the conclusions from some of the traditional trade models and can be used to understand phenomena such as intraindustry trade, cluster formation and economic geography.

a) Use the monopolistic competition model with internal economies of scale to analyse the effect of trade liberalisation (between two identical countries) in the car sector, assuming that this sector is characterised by internal economies of scale (due to fixed costs) and product differentiation. How and why does welfare change? What can we say about the location of firms?

b) If you would instead look at the watch industry and assume that this industry is characterised by external economies of scale and technological spillovers between firms, what would the effect of trade liberalisation on welfare be (use the external economy model)? What can we say about the location of firms?

Question 2 (foreign investment)

If there are internal economies of scale, why would it ever make sense for a firm to produce the same good in more than one production facility?

Question 3

Consider the model where firms have different levels of marginal cost ( “Firm Responses to Trade: Winners, Losers, and Industry Performance”).Explain why trade liberalisation has the same effect on an economy as an increase in the aggregate productivity of an economy (i.e. that the average output per worker increases).

Some groups of nations are forming blocks, like North America or Europe. Are regional trade blocks good for global trade or not? Support your argument.

Please I need today answer for This question and it is very important and I need solution for this issue with all the details , and help me with all the details.Please write your answer to me by typning  not by hand writing, so that I can read and understand your answer clearly.thanks in advance/Ha

Question 1

In the following examples, do you believe that the main driving force for the location of

production is economies of scale or comparative advantage:

a) The presence of two automotive companies, Volvo and Saab, in Sweden.

b) The presence of a textile industry in Bangladesh.

c) The large number of coffee growers in Tanzania and Kenya on the slopes of Kiliman- jaro.

d) That 70% of all lighters in the world are produced in the Chinese city of Wenzhou.

e) The many nightclubs around Stureplan in Stockholm compared to, for example,Gärdet.

Question 2

Imagine that Vietnam would close its trade in buttons

with other countries. Would prices in Vietnam increase or decrease? (Hint: this depends

on the size of the Vietnamese domestic demand).

Question 3

Consider, again,. Assume that Vietnam maintains free trade in

buttons but that its current output in this industry is zero due to competition from China.

Now, the Vietnamese government decides to subsidise its button industry (this causes

Vietnam’s supply curve to shift downwards). Will this be successful? What does it depend

1)In which areas does classical economics and neoclassical economics differ in which are similar? Explain precisely.

Elaborate on the characteristics of the public management environments.

Subject: Public Administration

5. You own goods A and B. You are considering increasing price of good A by 10%. Here is the information you have

Pa = 20

Qa = 1000

For each $1 increase in Pa, Qa will decrease by 100.

Pb = 12

Qb = 750

For each $1 increase in Pa, Qb will increase by 100.

(The point of this exercise is to have you do everything the long way then use the delta r formula so you can see the difference)

h. What is the own price elasticity for good A?

i. What is the cross price elasticity of A and B?

j. Calculate the change of revenue using the formula provided in class.

k. Explain why the two methods have different answers.

l. To calculate the change in total revenue from the price change, which method do you prefer? Doing parts a-g or doing part h-j? Briefly explain.

18. Comment critically: “Recycling is beneficial to saving the environment yet it is a complex issue. It calls for changes in attitudes yet even that is not enough since markets are not well developed to be substantial force in preserving the environment.”

The world has experienced a major crisis due to the rapid spread of the Coronavirus: • What are the effects of this crisis on the image of China, The United States, and Europe? • What is the role of international public relations in changing of the image after the end of the virus? And how?

17. Comment critically: “Genetically modified food production has been a very important factor in increasing food stuff and avoiding massive scale starvation.”

Discuss some limitations of unemployment rate figures as a measure of a country’s economic well-being.

u13.
The market for good X is perfectly competitive. The demand and supply functions of good X are given as follows:

uQd = 6000 – 30 P  Qs = –500 + 20 P

uQd is quantity demanded in thousand units, Qs is quantity supplied in thousand units, and P is the unit price in dollars for good X. All 1000 firms in this market are identical and their cost structures do not depend on the number of firms in this market. Currently, this market is in long-run equilibrium.

a. What are the equilibrium market price and market quantity for good X? Please explain your calculations.

Now suppose the government gives an $8 per-unit subsidy to the consumers for each unit of good X consumed.

b. After the provision of this per-unit subsidy to the consumers, what are the short-run equilibrium market price and market quantity for good X? Please explain your calculations

c. What are the long-run equilibrium market price and market quantity for good X after the provision of this per-unit subsidy to the consumers? Briefly explain your answer.

Consider the two investments shown below, only one of which can be chosen. They are one-shot investments. Calculate AW_2-1 assuming 15.9081 interest rate.