Q: Using suitable illustrations, distinguish clearly between the short-run Philip’s curve and the
A: The Phillips curve represents the inverse connection between inflation and unemployment: as…
Q: Economic growth typically results in rising standards of living and prosperity. However, it also…
A: The model's dependent variables are regulations like approachable and inaccessible locations,…
Q: What are the arguments for China having actually manipulated its currency over the years? (Check all…
A: The term "currency" refers to anything that is commonly acknowledged to have value as a medium of…
Q: Suppose that average incomes today were $50,790 and are expected to grow at 3.1% each year for the…
A: The measure that depicts the final value of goods and services during a specified period of time is…
Q: 2. A refrigerator manufacturer is planning capacity expansions. They have determined that their…
A: Capacity Cost are in the form : F(y) = kya For above example , a = 0.62 & k = 0.0107 Demand is…
Q: Use the following table to calculate the price elasticity of supply for computers Use the following…
A: Here, given information is, Initial price: 250 Final price: 500 Initial quantity supplied: 75 Final…
Q: Suppose Alphonso’s town raised the price of bus tickets to $1 per trip (while the price of burgers…
A: Given information: The price of bus tickets rises to = $1 per trip Price of burger = $2 Budget = $10
Q: A certain equipment costs P7,000 has a salvage book value at the end of 14 years is P2,197.22. of…
A: Given the cost of equipment = P7000 Salvage value = P350 Book value at the end of 14th year =…
Q: Exhibit: Demand and Price Elasticity 2) The demand curve going from point D to E Os price inelastic…
A: Note - Hi! thanks for the question but as per the guidelines of the company we are not allowed to…
Q: A套第7页共10页 According to production possibility frontier of an economy in the two graphs below, answer…
A: The production plausibility frontier (PPF) is a bend outlining the shifting measures of two items…
Q: A food manufacturer produces several ingredients for a taco linner including taco shells, taco meat…
A: The price point at which the merchant's total profit is maximized. This price point is called…
Q: QUESTION 19 The difference between the Ricardian model of trade and the immobile factor model is…
A: Even though the LDC business pays lower wages, it is conceivable for an industry in a developed…
Q: We can produce widgets with two inputs – labour and capital. The two inputs are perfect substitutes.…
A: Inputs of production refer to the various inputs that are used in the process of production of a…
Q: Can you think of a product that meets at least most of the criteria required for a perfectly…
A: Perfectly competitive market refers to the market which has been characterized by the presence of…
Q: Amit is using his money to buy assets like house , commercial land and machines . Write what is he…
A: Disposable Income: Disposable income is the income that remains after subtracting the taxes and this…
Q: Calculate the benefit cost ratio for the following three alternatives. Each alternative has a 10-…
A: A cost-benefit analysis is a method that is the most common way of contrasting the anticipated cost…
Q: The table below shows nominal GDP, exports, and imports for the United States. Nominal GDP, Exports,…
A: Here, the given table provides information about the nominal GDP, imports and Exports of a country…
Q: The idea that taxes should be imposed to raise revenues but not change incentives is called a. the…
A: In a market, government imposes taxes in different ways according to the requirements of the market.
Q: The data from 200 machined parts are summarized as follows: y yes depth of bore E, no above below…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: How will exchange rates change in a country A where prices double year after year in comparison with…
A: The demand and supply for currency in the foreign exchange market determine the exchange rate of a…
Q: what happens in the work-leisure model, when the wage rate is decreasing and income effect is…
A: In the choice model of leisure and consumption, if the wage rate decrease which means the price for…
Q: Economic analysis is limited in its ability to forecast precise choices of a given individual…
A: Economic analysis refers to the observation and understanding of the given data to get relevant…
Q: 007 Quantity 2007 200 O 12 5 200 007 Nominal GDP 50 2015 Quantity 2015 200 20 220 80 2015 Nominal…
A: Nominal GDP estimates a nation's GDP utilizing current costs, without adapting to expansion. Balance…
Q: n the design of a jet engine part, the designer has a choice of specifying either an aluminium alloy…
A: Given information: Weight of aluminium casting/unit = 1.2 kg Cost of making aluminium casting = $.…
Q: The problem of adverse selection helps to explain.. A. Why banks prefer to make loans unsecured. B.…
A: In general, the term “adverse selection” refers to the situation in which sellers have knowledge…
Q: Consumers will divide their income among all goods so that: the ratio of marginal utility to…
A: Answer: A consumer maximizes its utility where the ratios of marginal utility to the price of the…
Q: According to the following table on the Consumer Price Index (CPI) with base 14-100, carry out the…
A:
Q: If the euro appreciates relative to the U.S. dollar, then: Question 4 options: The dollar will…
A: The foreign exchange market is the market where currencies of different countries are bought and…
Q: (a) Rank the three economic variables from most important to least important. Provide one relevant…
A: The Gross Domestic Product (GDP), the inflation rate (inflation), and the interest rate (interest…
Q: Suppose New York wants to build a new facility to replace Madison Square Garden. Assume that the…
A: The difference between the present value of cash inflows and outflows over time is called net…
Q: Consumption, investment, government spending, exports, and imports are:
A:
Q: A mechanical contractor is trying to calculate the present worth of personnel salaries over the next…
A: Given information: Salary at the end of year = $150000 Raise per year = 5% Interest rate = 12%
Q: (b). Suppose an economy is in recession with historically high unemployment. Using the Keynesian…
A: The income expenditure model of financial matters was created by John Maynard Keynes to make sense…
Q: Discuss the role of government in financial intermediation. Do you think government must be a player…
A: The primary goal of financial intermediation is to facilitate funding between savers and borrowers.…
Q: Use the following graph to answer questions 2 and 3. Consumer Goods P (a) .L (b) Capital Goods 2.…
A: Given;
Q: find the Present Worth when i is 7% EOY NCF ($) 1 100 2 150 3 200 4 250
A: Given the information: Interest rate = 7% G = 50 A = 100
Q: Use the following table to calculate the price elasticity of supply for computers Use the following…
A: Here, two different quantity supplied is given at different prices.
Q: Mathematically prove the put-call parity
A: concept:- put- call parity states the relationship between calls, puts and underlying futures…
Q: ed to yield 5%. The investor plans to sell the bond years once the second coupon payment is received…
A: *Answer: Par Value of Bond is $1000 Coupon rate is 7.5% Yield is 5% Time to maturity is 5 years…
Q: ssume that a consumer has two goods to consume: medical care services (M) and all other goods (X).…
A: Budget line shows the two goods all possible combination which a consumer can buy with given level…
Q: explain the economic health of Grenada base on the information below Grenada gdp per…
A: Given: GDP per capita of Grenada from the year 2017 to 2019.
Q: Want every single part
A: Total revenue is the amount which is earned by seller after selling the goods and services , so by…
Q: 1. The author of a bestselling novel was offered the following alternatives by movie company for the…
A: An examination in light of some future point is called Future-Worth Analysis. Classification.…
Q: 1. It refers to the purchase of goods and services, including public consumption and public…
A: The measure that depicts the final value of goods and services during a specified period of time is…
Q: A plant erected to manufacture socks has a first cost of P9,371,311 with a salvage value of x% of…
A: Disclaimer- “Since you have asked multiple question, we will solve the first three question for you…
Q: Exhibit: Demand and Price Elasticity 2 Price 58 2222 is price inelastic is price elastic 6 8…
A: To solve this question, we have to find the price elasticity of demand as we move on demand curve…
Q: A company has sold 5000 units of 100 dinars its own product at a price of per unit. If you know that…
A: Given Information: Number of Units sold = 5000 Selling price of Each unit = 100 dinars per unit…
Q: The gestation period between sowing crops and understanding income after the agricultural produce…
A: The aforementioned statement is true. Farmers require cash to pay for personal expenses such as…
Q: n 2021, the Woodland Republic Bureau of Statistics publication indicated thatthe Consumer Price…
A: CPI of the Woodland Republic in 2020 = 106.5 CPI of the Woodland Republic in 2021 = 109.2 Use the…
Q: Suppose the following information was published by the Australian Bureau of Statistics i
A: In the calculation of gross domestic product, there are some items that can not be included such as…
2
Step by step
Solved in 2 steps
- Explain what is Oligopoly and duopoly? Are firms in Oligopoly large firms or small firms? What is product differentiation, price discrimination and profit maximization under Oligopoly? Give two examples each of product differentiation and price discrimination. What is the optimum point of production and minimum cost point of a firm under Oligopoly? Explain and draw AR and MR curves as (a) kinked demand curve; (b) Collusion (cartels) and (c) Price leadership model.If firm 1 and firm 2 are the oligopolistic firms in bottled spring water production in Nomansland. The market demand is given by ? = 5000 −20?, Qd is the number of kilolitres demanded per month while P is the price of kilolitres of bottled water. If I assume in the bottled spring water production industry oligopoly exists amongst 20 firms how do I solve for the cournot quantities,prices and profits at equilibirum ? If ten firms are merged how will I calcuate the new Cournot equilibrum quantities, prices and profits for above?What are some of the barriers to entry that can keep the number of sellers small in an Oligopoly? Explain what these barriers to entry can mean for the long run profits in oligopoly. Give a few examples of businesses that you think are oligopolists and what the barriers to entry are in those markets.
- Only typed answer In a duopoly, each firm has marginal cost MC = 100, and market demand is Q = 500 - 0.5p. Assuming average cost is the same as marginal cost. In which oligopoly, Cournot or Stackelberg, do firms have more market power? a. Cournot since the Lerner Index in the Cournot model is twice as much as that in the Stackelberg model. b. Stackelberg since the Lerner Index in the Cournot model is twice as much as that in the Stackelberg model. c. Cournot since the Lerner Index in the Cournot model is about 1.08 times as much as that in the Stackelberg model. d. Stackelberg since the Lerner Index in the Cournot model is about 1.08 times as much as that in the Stackelberg model.which of the following statements about industries that are oligopolies is false? Select one a. An oligopoly with two firms is calleda duopaly, b. Firms in these industries may attempt to cooperate. C The fact that there is more than one firm in an oligopoly means that there are no barrien to entry d. Firms in these industries are interdependentWhat an oligopoly is? Explain in details. Solve the following problem: Assume that two airline companies decide to engage in collusive behaviour. Let’s analyse the game between two such companies. Suppose that each company can charge either a high price for tickets or a low price. If one company charges €100, it earns low profits if the other company charges €100 also, and high profits if the other company charges €200. On the other hand, if the company charges €200, it earns very low profits if the other company charges €100, and medium profits if the other company charges €200 also. 1. Draw the decision box for this game. 2. What is the Nash equilibrium in this game? Explain. 3. Is there an outcome that would be better than the Nash equilibrium for both airlines? How could it be achieved? Who would lose if it were achieved?
- What is the distinguishing characteristics of oligopoly in relation to the other forms of the other market organizations? What is its significance? In which sector of the USA economy is oligopoly most relevant?An oligopolistic firm from the telecommunication industry in USA follows demand-and-cost situation in 2009.Price in USD($) Quantity Total cost20 7 3619 8 4518 9 5417 10 6316 11 7215 12 81i. How much output should the oligopolistic produce? What price should it charge and what is the maximum profit can this firm earns?Suppose that there are two firms in a market, firm 1 and firm 2. The marketis declining in size. The game starts in period 0, and the firms can compete in periods 0, 1,2, 3, ... (i.e., indefinitely) if they so choose. Duopoly profits in period t for firm 1 are equalto 105 −10t, and they are 10.5 −t for firm 2. Monopoly profits (those if a firm is the onlyone left in the market) are 510 −25t for firm 1 and 51 −2t for firm 2. At the start of eachperiod, each firm must decide either to “stay in” or “exit” if it is still active (they do sosimultaneously if both are still active). Once a firm exits, it is out of the market forever andearns zero in each period thereafter. Firms maximize their (undiscounted) sum of profits.What is this game’s subgame perfect Nash equilibrium?Kinked demand curve model is useful in explaining price quantity stability that prevails in oligopolistic market agree? Or disagree use ilustrations to explain
- Discuss what can be the expected resultof the firms in the oligopoly, that is, that can be the expected Nash Equilibrium solution fora household cleaning appliance.Next, explain how it can be applied to the decisions that have to be made in an oligopoly. What specifically is the decision to be made by each seller in an oligopoly? How does each possible outcome in the prisoners' dilemma map into an outcome in an oligopoly? What do you think each seller's dominant strategy will be? Examine and discuss how the role of communication, specifically the lack of communication, can lead to an outcome that is worse for the players. (Of course, it is against U.S. law for the sellers to conspire to make the market less competitive!) Can you think of other examples of how the prisoners' dilemma could be applied to business decision making? Discuss any other applications of a prisoners' dilemma game you find to be interesting, whether from the text or one you can think of on your own.1. Prove that every trembling-hand perfect equilibrium (for the agent normal form) is sequential. Show by example that the converse is false. The remaining problems in this chapter concern game-theoretic variations on the classic models of oligopoly. They are primarily about those models and so relate more to material in other chapters, but they could not have been posed until we had covered Nash equilibria and sub game perfection. 2. Prove that in the Bertrand game, if prices must be charged in integer multiples of a penny, then there is always at least one Nash equilibrium in which players do not use weakly dominated strategies.