In the initial Cournot oligopoly equilibrium, both firms have constant marginal costs, m, and no fixed costs, and there is a barrier to entry. Determine what happens to the best-response function of firms if both firms now face a fixed cost of F

Q: Consider a perfectly competitive market where the demand for the good is given by Q=769-5p, where Q…

A: Demand : Qd=769-5p Supply : Qs=-7+5p   Equilibrium is a state of stable condition in the market…

Q: The supply curve of rubber balls is given by Q = 100P – 10. What happens to the quantity supplied of…

A: A supply curve is a graphical representation of the relationship between the quantity of a good or…

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A: A payday loan is a short-term, high-interest loan that is typically due on the borrower's next…

Q: The aggregate demand curve shifts to the left when

A: An aggregate demand curve depicts the inverse relationship between the price level and aggregate…

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A: Average cost is the total cost divided by quantity. Marginal Cost is the cost of producing an…

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A: Price discrimination occurs when the seller is charging different prices to different consumers for…

Q: International trade policies: International trade policies refer to measures aimed at regulating the…

A: Supply is the term used for the willingness and ability of a seller to sell the product and services…

Q: A D F East Coast Counties 104.7 128.1 314.6 134.7 123.5 141.3

A: East Cost Countries Cost of Living Index A 104.7 B 128.1 C 314.6 D 134.7 E 123.5 F 141.3…

Q: he two side by side graphs are for two firms that between them supply all the original grown…

A: A perfectly competitive firm supplies the quantity of output at which price equals MC. The MC should…

Q: a. The size of its recessionary gap is $[ 50 b. The size of this gap as a percentage of its actual…

A: Equilibrium in the economy occurs at the intersection of the AD and AS curves.  The potential level…

Q: Stay -0, -0 -6,6 Swerve 6,-6 9,9

A: probability associated with   q 1-q p   -0,-0 6,-6 1-p   -6,6 9,9 We have to equate the…

Q: 2. SCHOOL SPIRIT As president of Student Council, Brandy is getting T-shirts made for a pep rally.…

A: The average cost (AC) is the total cost (TC) of producing a certain number of units of a product,…

Q: Suppose that consumer spending initially rises by $5 billion for every 1 percent rise in household…

A: Aggregate demand: Aggregate demand signifies the total value of all the spending made within the…

Q: Use the AD-AS framework to analyse the short run and long run effects on an economy when the…

A: The Aggregate Demand (AD) - Aggregate Supply (AS) explain the relationship between the total demand…

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A: Trend forecasting is the process of predicting future buyer preferences and purchasing behaviors…

Q: 14. Efficiency in the production possibilities model Suppose the fictional country of Haleakala…

A: Production possibilities frontier shows combinations of two goods that can be produced with the…

Q: You are currently thinking about setting up a retirement fund. You want to deposit $4000 every year…

A: Future value refers to the value of the money that an original investment will increase, over time,…

Q: Suppose that the real interest rate is 6%. Next, assume that some factors changes, such that the…

A: The investment demand curve, under the assumption that all other factors affecting investment remain…

Q: (b) Determine the intervals on which the profit function is increasing and decreasing. (Enter your…

A: Cost function: C=0.8x+7300,          0≤x≤50,000 Revenue function: R=11000066000x-x2,…

Q: Strategy Player 1 (even player) 1 (finger) 2 (fingers) 1 (finger) Player 2 (odd player) 2 (fingers)…

A: A saddle point is an optimal solution to the game because neither player can improve their…

Q: T/F  Monopoly market is a macroeconomic concept.

A: In macroeconomics, the entire economy as a whole, as opposed to specific markets or businesses, is…

Q: Price of Good X ($) 20 18 16 14 12 10 8 6 4 2 0 0 1 The Market of Good X 2 3 Quantity of Good X 4 S…

A: Solution 5: The point of intersection of the demand and supply curve is called the equilibrium point…

Q: Three mutually exclusive projects are being considered:

A: Mutually exclusive alternatives imply that only one can be chosen out of three .We will you the…

Q: Which of the following is NOT a factor that influences unemployment:     Regional location…

A: Unemployment refers to the situation where individuals who are able and willing to work are unable…

Q: Consider the market for CD players, illustrated in the figure to the right. Suppose there are…

A: Network externalities can be both positive and negative. Network externalities are a sort of…

Q: The following table presents 2015 data from the national-income accounts of the United States.…

A: The market value of all the final goods and services generated by an economy over a certain time…

Q: Consider the data in the Table below. Firm F operates in a perfectly competitive market. FIRM PRICE…

A: Total revenue is the product of price and quantity.  Average is calculated as total divided by…

Q: Deborah's utility over consumption (C), hours worked (H), and hours spent in commute (S) is: +

A: Given: Utility function: U(C,H) = C1/2-H-S

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A: Property rights are explained as the rights that one possesses that permit ownership of something…

Q: Which of the following is not true? Multiple Choice - O The demand for labor for a firm selling in a…

A: A theoretical market structure where a large number of small firms produce homogeneous (identical)…

Q: 7. The Sylvan Corporation has estimated the price elasticity of demand for synthetic wood  sorrel to…

A: 7) Buyers respond to prices in a way such that when the price increases they demand less of the…

Q: Consider a perfectly competitive market where the demand for the good is given by Q=769-5p, where Q…

A: Demand : Qd=769-5p Supply : Qs=-7+5p   Market welfare or total market surplus refers to the total of…

Q: Show the possible effect of this free entry and exit by shifting the demand curve for a typical…

A: In monopolistic competition, profit is maximised at a point where marginal revenue is equal to…

Q: Suppose that an individual has a Utility function represented by a CES function. The utility…

A: Taking the utility function  U = X1/2+Y1/2 Taking the partial derivative of U with respect to Y is…

Q: True/ False  Economic development refers to the growth of the GDP of an nation.

A: Economic development is the steady, long-term increase in a nation's or region's economic…

Q: Suppose a firm uses only capital and labor for production. It takes input prices as ven at r= 6 and…

A: Isocost represents the different combinations of two inputs where total cost is same or these…

Q: In details explain the potential problems with using fiscal and monetary policies to address…

A: Economic recession is defined as a situation when the overall economic activity of an economy takes…

Q: The efficiency problem that results from market power is that the market: has side effects. has too…

A: The market power refers to the ability of a firm to set the price. The market power is absent in the…

Q: QUESTION 8 Every year for 10 years starting year 2, you deposit $2000 in a savings account that…

A: We must compute the total of the current values of each deposit in order to determine the present…

Q: ing & Consumer Behavior 1) Jones Soda began selling its products to large retailers in an effort to…

A: Utility is a subjective concept. It refers to the satisfaction derived by a consumer when he…

Q: suppose the marginal propensity to consume is 0.75, the marginal propensity to import is 0.25, there…

A: Aggregate expenditure is the sum of all spending made by all sectors of the economy.  It includes…

Q: A firm's manager is given the following information: To sell 4 units of output, a price of $132 must…

A: Marginal revenue and marginal costs: Marginal revenue is the % change in the earned revenue due to a…

Q: Increased competition is good for incentivizing innovation. Explain the arguments for and against…

A: The relationship between competition and innovation is a topic of ongoing debate in economics and…

Q: Use the accompanying graph to answer these questions. Price of X ($) 20 units 18- 16 14 12- 10- 8 00…

A: Demand-supply equilibrium: Demand refers to the total demanded quantity for commodities and services…

Q: In economics, the multiplier effect refers to the fact that when there is an injection of money to…

A: The multiplier effect in AD-AS framework: The main idea behind the multiplier effect is that an…

Q: i have calculated for number one sevral times and i still do not get the 240 as the answe

A: Break even point (BEP) is a production level at which price is such that total revenue equals the…

Q: iv. The U.S. already has several ways to make digital transactions, for example, credit/debit cards,…

A: Digital currency refers to a type of currency that exists solely in digital or electronic form,…

Q: 100 90 80 PRICE (Dollars per handbag) 8 70 60 Tax Wedge 50 40 20 10 Demand D Supply After Tax 0 160…

A: Demand-supply equilibrium: Demand refers to the total demanded quantity for commodities and services…

Q: You are interested in the effect of a new smoking restriction implemented by restaurants. That is,…

A: Given regression equation cigs=β0+β1educ+β2income+β3age2+β4restaurn+β5ln(cigprice)+μFrom the…

Q: The individual supply curve:     the relationship between the wage rate and the number of hours…

A: Supply curve is the upward sloping curve.  Demand curve is the downward sloping curve.  Equilibrium…