Question
In: Economics
Suppose there are two identical Diamonds that you own. The only difference between them is how...
Suppose there are two identical Diamonds that you own. The only difference between them is how you acquired them. One diamond was won as a prize, the other you purchased.
a. What is the difference in the cost of retaining ownership in the two diamonds? Explain. (hint: recall the distinction between accounting and opportunity costs).
b. Will there be any predicted difference in the use of the diamonds? Explain.
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
Suppose we have two identical firms A and B, selling identical products. They are the only...
Suppose we have two identical firms A and B, selling identical
products. They are the only firms in the market and compete by
choosing quantities at the same time. The Market demand curve is
given by P=200-Q. The only cost is a constant marginal cost of $17.
Suppose Firm A produces a quantity of 50 and Firm B produces a
quantity of 50. If Firm A decides to increase its quantity by 1
unit while Firm B continues to produce...
Bonds X and Y are identical, including the risk class. The only difference between A and...
Bonds X and Y are identical, including the risk class. The only
difference between A and B is in the coupon payment as shown
below.
Bond
X
Bond
Y
Face
value
$1,000
$1,000
Annual Coupon Payment
$120
$130
Payment Frequency
Semiannual
Annual
Years
to maturity
15
15
Price
$904.55
?
What
is the price of bond Y?
A.
$925.88
B.
$956.95
C.
$940.92
D.
$989.75
E.
$973.44
F.
$1,007.15
Suppose that two identical firms produce widgets and that they are the only firms in the...
Suppose that two identical firms produce widgets and that they
are the only firms in the market. Their costs are given by
C1 = 60 Q1
and
C2 = 60 Q2
where Q1 is the output of Firm 1 and Q2 is the output of Firm 2.
Price is determined by the following demand curve:
P= 2100 − Q where Q=Q1+Q2
Find the Cournot-Nash equilibrium. Calculate the profit of each
firm at this equilibrium. (For all of the following, enter...
Suppose that two identical firms produce widgets and that they are the only firms in the...
Suppose that two identical firms produce widgets and that they
are the only firms in the market. Their costs are given by
C1=60Q1
and
C2=60Q2
where
Q1 is the output of Firm 1 and Q2 is the output of Firm 2. Price
is determined by the following demand curve:
P=2700−Q where Q=Q1+Q2
Find the Cournot-Nash equilibrium. Calculate the profit of each
firm at this equilibrium. (For all of the following, enter a
numeric response rounded to two decimal places.)
When...
Suppose that two identical firms are selling a product and that they are the only firms...
Suppose that two identical firms are selling a product and that
they are the only firms in the market. Total costs are Ci = 20Qi
for each firm. The market demand curve is P = 80 – 0.5Q where Q =
Q1 + Q2. The Cournot model describes the competition in this
market. Using the above information, complete the below
statements,
a.)If these two firms collude, their combined output is equal
to
b.)If these two firms collude, each firm’s output...
Indicate the two types of comparative studies, and indicate the difference between them.
Indicate the two types of comparative studies, and indicate the
difference between them.
In your own words, what is the difference between flirting and harassing? How could you tell...
In your own words, what is the difference between flirting and
harassing? How could you tell that the other person was interested?
What steps, if any, did you take to be sure you would not be
accused of sexual harassment later?
Currency options. What are the two types, and what is the difference between them? What is...
Currency options. What are the two types, and what is the
difference between them? What is the break-even point for each
type? Conceptually understand and be able to mathematically work
with them.
A. You purchase a put option on the Canadian dollar with a
strike price of $0.91 and a premium of $0.02. If before expiration
the spot rate of the Canadian dollar is $0.92, will you exercise
the option?
b. What if the spot rate before expiration is $0.88?...
a)What are the sources of inflation? How would you illustrate them graphically? b)Explain the difference between...
a)What are the sources of inflation? How would you illustrate
them graphically?
b)Explain the difference between deflation and disinflation.
Analyze the impact on an economy of a prolonged period of
deflation.
Suppose the natural gas industry consisted of only two firms. Let these firms have identical cost...
Suppose the natural gas industry consisted of only two firms.
Let these firms have identical cost functions, C(q) = 40q. Assume
the demand curve for the industry is given by P = 100 − Q and that
each firm expects the other to behave as a Cournot competitor.
a) Calculate the Cournot-Nash equilibrium for each firm,
assuming that each chooses the output level that maximizes its
profits when taking its rival’s output as given. What are the
profits of each...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- THIS PROGRAM HAS TO BE WRITTEN IN C Single function to perform the parity computation on...
- Consider a buffer system consisting of Benzoic acid (pKa = 4.20) and sodium benzoate, a) Would...
- Decision Variables S T Minimize 1.8S + 2.20T Subject to: Potassium 5S + 8T >= 200...
- A neurologist needs to counsel a stroke victim and her husband about possible outcomes, treatment options,...
- Case Study: Personal Beliefs in the Workplace Don Shakow was a prominent professional who worked in...
- 1: Competency framework usage is the modern best practice in management. What is meant by competency...
- A 19.34 g mixture of sugar (C12H22O11) and table salt (NaCl) is dissolved in 231 g...
ADVERTISEMENT