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3 years ago

14

Consider the following duopoly in which the two firms sell a homogeneous product. The inverse demand is given by p = 10 − 1 2 Q.

The marginal cost of both firms is $5. What price would prevail in a cournot equilibrium?

1 answer:

Feliz [49]3 years ago

3 0

Answer:

Price will be 6.6

Explanation:

You can find the attached file.

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Assume that a currency's spot and future prices are the same, and the currency's interest rate is higher than the U.S. rate. The

Andrei [34K]

Answer:

put upward pressure on; put downward pressure on

The actions of U.S. investors to lock in this higher foreign return would PUT UPWARD PRESSURE ON the currency's spot rate and PUT DOWNWARD PRESSURE ON the currency's futures price.

Explanation:

If both the spot and the forward price of a currency are the same, it means that it should be worth the same today than in the future. If you can earn higher interest by investing in that foreign currency, then investors will start purchasing higher amounts of the foreign in order to invest and gain higher rates.

Since the demand for the foreign currency increases, that put upward pressure its current price. Simply more investors will want to invest in that currency. While that happens right now, the market will tend to adjust to correct this arbitrage, and the way this can be adjusted is by lowering the future price of the currency. That puts downward pressure on the forward rate.

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3 years ago

Suppose the chicago cubs could rent out wrigley field (the field the players play on) to local youth leagues for $11,000 per mon

matrenka [14]

<span>implicit cost

Good luck =]</span>

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3 years ago

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A seller tells a real estate professional "don’t show my house to anybody not born in the United States." In this circumstance,

Lady_Fox [76]

Answer: b. must decline to take the listing with this requirement

Explanation: A real estate professional must not take any listing with discriminatory requirement based on race such as the requirement made by the seller in the scenario above. This in accordance with the Fair Housing Act which prohibits acts of discrimination in housing based on color, religion, race, sex or nationality. A listing stating that an apartment or property shouldn't be offered to individuals who aren't nationals of the United States has discriminated on the basis of nationality which is illegal.

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4 years ago

To fully leverage the capacity of the health workforce and align care processes to emerging financial incentives, scope-of-pract

Delicious77 [7]

The scope of practice regulations for <u>Nurse Practitioners (NP)</u> should be reconsidered.

Across the states, there is substantial variation in the scope of practice permitted to NP’s. Some states allow NP’s to provide care independently without the need for physician collaboration or supervision, while other states do not allow NP’s to do so. Thus there is a great need to align the regulations set for NP’s.

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3 years ago

You are a U.S. investor who purchased British securities for 2,340 pounds one year ago when the British pound cost $1.52. No div

Olin [163]

Answer:

Total Return = 10.45%

Explanation:

To calculate the return, we must first determine the appreciation in the value of the securities in terms of the US dollar.

The initial investment in terms of US dollar was of,

Initial Investment in USD = Investment in Pounds * Exchange rate

Initial Investment in USD = 2340 * 1.52

Initial Investment in USD = $3556.8

The current value of the investment in terms of USD is,

Current value of investment in USD = 2440 * 1.61

Current value of investment in USD = $3928.4

The formula to calculate total return is,

Total Return = (Current Value - Initial Value) / Initial Value

So, the total return based on US dollars was:

Total return = (3928.4 - 3556.8) / 3556.8

Total Return = 0.10447 or 10.447% rounded off to 10.45%

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3 years ago