Economics

What would each of the following events do to the terms of trade of the importing country and the exporting country, other things being equal ? a- A blight destroys a large part of the coffe beans produced in the world. b-The koreans cut the price of the steel they sell to Canada. c-General inflation of 10 percent occur ...continues

7 problems - Monopoly/Oligopoly

Online Economics Managerial class using Michael Baye's 5th edition book. You are the manager of a monopoly, and your demand and cost functions are given by P = 200 - 2Q and C(Q) = 2,000 + 3Q2, respectively. a. What price-quantity combination maximizes your firm's profits? b. Calculate the maximum profits. c. Is ...continues

microeconomics ( equilibrium )

The Efficient Number of Firms Suppose the oil industry in some country is perfectly competitive and all firms extract oil from a common, and endless pool. The cost of operating a well is #1,000 for one year, and the firm can sell any amount it chooses at the world price of $10 a barrel. If N wells are operating, the output ...continues

auction

Consider a third-price sealed bid auction: Suppose there are more than two bidders. Each potential bidder writes down a bid on a piece of paper. The buyer with the highest bid gets the item and has to pay the third highest bid. Is there a dominant strategy equilibrium for this auction? Make sure you exhaust all the possibili ...continues

optimal effort

There is a team technology in which two workers must work together in order to produce. The revenue from their efforts is given by R = (e1e2)^1/2 where ei is the effort that worker ∈ {1, 2} puts into production. Each worker's utility is given by ui = wi − ei^2 where wi is worker i's income. (a) What are the ...continues

Equilibrium

a. Suppose first that 2 cannot pay the firm not to store waste, and the competitive price for storage is 1. Compute the Walrasian equilibrium and show that it is not Parteo efficient. Please see attached for full quesiton.

nash equilibrium

Suppose that player 1 and player 2 want to construct a bridge to improve access between them. Suppose 1's reservation price for the bridge (his value from it) is 95 dollars and 2's reservation price is 45 dollars... a. Suppose x=50. Is there a Nash-equilibrium for this game in which the players end up without a bridge? Descri ...continues

9415- Demand Equation

Air Express, an overnight mail carrier, provides one flight per day from Portland, Maine to Hawaii. Currently Air Express flights have been operating at 80% capacity (maximum capacity 400 pounds). Therefore each flight has the potential to carry 80 additional pounds of mail. Air Express is currently accepting bids to carry 80 po ...continues

35 Multiple Choice questions: competitive industry, complementary inputs, marginal revenue product, Conglomerate mergers, Vertical integration, market failure problems in private markets, marginal cost, skilled workers, demand for labor, public good, Marginal resource cost, marginal revenue product, price elasticity of demand for an input, antitrust law,

1. In a competitive industry, suppose the marginal revenue product (MRP) of the last doughnut baker hired is $35, the MRP of the last bagel baker hired is $15, and a bakery must pay doughnut bakers $40 a day and bagel bakers $10 per day. To maximize profits the bakery should hire: A) more doughnut bakers and less bagel bakers ...continues

What will happen if the Canada, US and Mexico get unified?

Canada, the United States and Mexico are clearly separate countries. Does this fact alone imply a lower standard of living in each of the three countries compared to the situation where they are united into a single new country?