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How is the incidence of a specific tax per worker shared between competitive firms and workers? How does your answer change if the firm is a monopsony?
Why Apple chooses to have an exclusive deal with AT&T, why AT&T wants Apple to enforce exclusivity, and why Orange is being more flexible.
What effect would you expect this deal to have on advertising rates and the number of commercials, and why?
What is a monopoly's demand for labor if it uses fixed-proportions production function in which each unit of output takes one unit of labor and one of capital?
How does a monopoly's demand for labor shift if a second firm enters its output market and the result is a Cournot duopoly equilibrium?
What does a competitive firm's labor demand curve look like at quantities of labor such that the marginal product of labor is negative? Why?
What effect does an ad valorem tax of on the revenue of a competitive firm have on that firm's demand for labor?
If the firm uses a fixed-proportion production process where one unit of labor and one unit of capital produce. What is the marginal revenue product of labor?
What is the marginal revenue product function for truckers, and how does the function depend on the number of loggers employed?
If this country's labor market is competitive, what effect will this disaster have on wages in this country?
Show how improvements in drilling technology and increases in oil prices result in more deepwater drilling.
Show the payoff matrix for the two drivers engaged in this game of chicken. Determine the Nash equilibria for this game.
Suppose that an incumbent can commit to producing a large quantity of output before the potential entrant decides. What is the subgame perfect Nash equilibrium?
If the rival enters, the rival loses $36 and the incumbent makes $132. Show the game tree. Should the monopoly buy the machine anyway?
What happens to the Cournot equilibrium if the legal requirement causes the marginal cost of the second firm to rise to that of the first firm, $20?
How would the Cournot equilibrium change in the airline example if United's marginal cost was $100 and American's was $200?
Determine the Stackelberg equilibrium with one leader firm and two follower firms if market demand curve is linear and each firm faces a constant marginal cost.
Discuss how this equilibrium differs from the one in which only one firm is subsidized.
In the Challenge Solution, how much would the equilibrium price have risen if only the elasticity of demand had changed and not the marginal cost?
Show the payoff matrix and explain the reasoning in the prisoners' dilemma example where Larry and Duncan, possible criminals, will get one year in prison.
explain how your analysis would change if the firms have an additional option of shutting down and avoiding lump-sum tax rather than producing 10 or 20 units.
Draw a game tree to illustrate why an incumbent would produce more in the first period than the single-period profit-maximizing level.
describe a ruler's optimal strategy with respect to catapult research, deployment, and public announcements. What role does credibility of announcements play?
Two stars-the 100-meter gold medalist and the 200- meter gold medalist-from the a past. What is the Nash equilibrium? Is the game a prisoners' dilemma? Explain.
How would the analysis in the Challenge Solution change if the Other firms could have picked their standard before Amazon chose?