Two oligopolistic firms have to decide on the pricing strategy. Each can either choose either a high or a low price. If they both choose a high price, each will make $12 million, but if they both choose a low price, each will make $ 8 million. If one sets a high price and other a low one, the low-priced firm will make $16 million, but the high-priced firm will make only $4 million. It is illegal for each firm to communicate with each other. a) Which strategy would both of them ultimately opt for? b) What would be the pay-off for this strategy?

Q: nits equal e to one hira of total emissior economy (so two-thirds of all emissions m bated), and…

A: *Answer:

Q: margina i propenfity ij 0.5 AUTonomas conumptiin 200 governmentspeniaing is Jl0 intended invesmentis…

A: Note: There are multiple sub parts for this question. We shall answer the first three sub parts for…

Q: (i) Explain the difference between the headline fiscal deficit and the primary fiscal deficit. Which…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Anna and Bess are assigned to write a joint paper within a 24-hour period about the Pareto optimal…

A: Given:- Function=23 In(A+B)Hours for leisure=(24-A)Anna's utility function=UA=23…

Q: Consider a company whose long run total cost function is TC= 200q -20q^2 +q^3 and whose marginal…

A: MC cuts intersect ATC at its minimum point.  So, at MC = ATC we get the quantity level at which ATC…

Q: 6. What is role of the government and economic policy during recessions according to Classical…

A: The numerous macroeconomic theories and models of how aggregate demand greatly impacts economic…

Q: Discuss the difference between capitalism and communism.

A: The difference between Capitalism and Communism can be explained as follows:

Q: Using a production possibilities frontier (PPF) diagram, determine how does the PPF change in…

A: the production possibility frontier (PPF)  is a bend representing the differing measures of two…

Q: QUESTION 22 The total surplus in a market reaches its maximum when supply and demand are in…

A: Q22) "Total surplus is computed by adding the consumer and producer surplus."

Q: Use the graph to answer the question that follows.  What is the price elasticity of demand going…

A:

Q: Question 24 In the definition of marginal propensity to consume, marginal refers to the amount of…

A: Consumption function is a sum of autonomous and induced consumption. Autonomous consumption is…

Q: Contract.

A: Each organisation will have its own contract. Some will have more clauses, while others will have…

Q: Name and discuss the factors that shift the IS Curve. Give two examples, with the help of a diagram,…

A: The term "IS curve" refers to the graph that illustrates the various permutations of the level of…

Q: What is the Fed Funds Rate? the interest rate the Fed pays on reserves stored in the federal funds…

A: The required reserve is the amount of cash banks must keep on hand at any given time.…

Q: does financial development facilitate the economic growth in a country? Explain 3 ways that…

A: Economic Growth refers to the process through which the economy improves in terms of welfare,…

Q: Use the graph to answer the question that follows.  What is the price elasticity of demand when…

A: The measure that depicts change in quantity demanded of a good with respect to change in price level…

Q: Nursing Should public funding be used for prevention programs if money could be saved in the future?

A: Being a part of system-wide efforts to focus on what works best is what prevention entails. This…

Q: 1. An individual has a utility function, U(q,42) = V91 42). (Mathematical assistance: x = x2). (a)…

A: We have given prices p1 and p2 for q1 and q2 respectively.

Q: Problem 8. Compute the future worth in year 10 at i= 12% per year for the cash flow shown below.

A: Given cashflows for 10 years Future worth of each cashflow = cashflow * (1 + rate)^time total future…

Q: The market research department of EZPub estimated that 5,000 textbooks would be purchased in Canada…

A: Demand shows different combinations of quantity demanded at different price levels

Q: What are marketing, operations, finance, and human resource of Alibaba Group: The Rise of a Platform…

A: Alibaba, which began as a tool to assist small Chinese businesses with export transactions in 1999,…

Q: Suppose 2 players play the following game infinite times in the future. What should be the minimum…

A: We have common discount factor delta for both the players. The game has unique nash equilibrium…

Q: Your firm is currently paying $3,000 a year to a commercial garbage collection agency to haul waste…

A: Purchase price = $6,500 Labor to operate baler = $3,500/year Strapping material = $300/year Life of…

Q: Daily Enterprises is purchasing a $9.8 million machine. It will cost $55,000 to transport and…

A: The term depreciation refers to an accounting method used to allocate the cost of a tangible or…

Q: Jimmy just graduated from a top medical school and is currently deciding which  hospital emergency…

A: Unemployment refers to the state in which a person does not have any job even though he is actively…

Q: 5. The allocatively efficient quantity of product Z for the whole market is 2 million units. At that…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: 25. In a market, the inverse supply function is given by p°(q) = aq +b for some positive constants a…

A: We have linear supply curve for the respective firm. And producer surplus is the area above the…

Q: A firm operating in a perfectly competitive market cannot increase its profit. Which of the…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Fischer and Taylor pointed out an important characteristic of both wage and price setting, the…

A: They suppose that companies hire a huge number of different forms of labor using a production…

Q: Suppose a firm's total cost and marginal cost are given by TC = 192 + 10Q + 3Q² and MC = 10 + 6Q.…

A: Average total price is called the sum general of all manufacturing prices divided with the aid of…

Q: at a country is endowed with 47 reserve. rginal willingness to pay for oil in d is given by P = 10 –…

A: *Answer:  Given that ,    Marginal willingness to pay = demand curve equation : P = 10 - 0.31q   MC…

Q: 2. Suppose that the government of Australia wants to maintain a constant nominal money supply. Its…

A:

Q: What is Revenue Equivalence Theorem for the standard auction types?

A: The revenue is the multiplication of price and quantity. The higher price causes the rise in the…

Q: Q1) Consider the following information for product A and related product B in consumption: Quantity…

A: Formula to calculate price elasticity:- Ed=Change in quantity demandedAverage of quantity of AChange…

Q: 14. At what price level would a firm's short-run supply curve begin? A-The price at the minimum of…

A: As per the guidelines answer is given to the first question i.e. Q14. Answer 14) "A supply curve for…

Q: 4. A nation has an adult population of 75 million people. There are 45 million employed people and…

A: Since you have posted multiple questions, as per the guidelines we can solve only one question per…

Q: Rich Uncle Pennybags is the only seller of board games in Atlantic City, New Jersey. The inverse…

A: "In a perfectly price discrimination, the monopolist produce optimal quantity that is pareto…

Q: (1) RELATED RATES. Provide all details as demonstrated in class. x= chronological order of the…

A: * SOLUTION :-  (1) a) From the given information the calculation is given below ,

Q: Discuss how nations use expenditure-changing policies and expenditure-switching policies to achieve…

A: Balance of trade is the difference between exports and imports of goods and services. It is positive…

Q: When the number of competing firms is small in a market, is this market necessarily different from a…

A: Market structure is categorized on the basis of number of firms and type of the goods. If number of…

Q: mpany of 5000. Safe drivers have a lower probability of accidents with óf $: áfé dřivers have a…

A: Insurance is a policy, addressed by an approach, where an individual or element gets monetary…

Q: The school maintenance personnel bought a diesel generator set for P 10,000 and agreed to pay the…

A: When you earn interest on the principal amount of an investment, it is added back to the principal –…

Q: Green is a business selling worm farm start-up kit for $12 each. This year, Go Green's fixed cost…

A:

Q: Question 5 Describe what is meant by a learning curve. Provide a simple illustration of a 70% and an…

A: Learning is essential for anyone's skill or knowledge to grow, develop, and extend.As a result,…

Q: Look at the following ratios: • 90/10 ratio the ratio of Decile 10 income to Decile 1 income • 90/50…

A: The decile dispersion ratio compares the average earnings/income of the x percent (wealthy…

Q: Evaluate the impact of COVID-19 pandemic on the performance of UK supermarkets. Performance should…

A: Uncertainty is described as the situation which has no probability of prediction. It is a situation…

Q: The average revenue for a certain firm is giver by AR = 360 – 24q. %3D Comment on the relationship…

A: We are given, AR = 360 - 24q Now we will calculate MR For this, we will find TR  TR = AR x q = (360…

Q: Assume the marginal propensity to consume is 0.5 (c1 =0.5). Given this data, which of the following…

A: Marginal propensity to consume is the proportion of change in income spent on consumption

Q: Question When the price of a cup of tea is BHD 0.200, each MBA student will demand 2 cups of tea…

A: Supply snd demand, in economic matters, connection between the amount of a product that makers wish…