Economics

Two companies compete for a share of the soft drink market. Each worked with an

Two companies compete for a share of the soft drink market. Each worked with an advertising agency in order to develop alternative advertising strategies for the coming year (e.g.…

Two companies, Acme and Bilco, are sellers in the same market. Each company deci

Two companies, Acme and Bilco, are sellers in the same market. Each company decides whether to charge a high price or a low price. In the figure, the dollar amounts are payoffs an…

Two companies, Lawnman Inc. and Tauro Co., are competing in the manufacture and

Two companies, Lawnman Inc. and Tauro Co., are competing in the manufacture and sale of a new type of kryptonite-powered lawnmowers. Lawnman has a somewhat older plant and require…

Two companies, Lawnman Inc. and Tauro Co., are competing in the manufacture and

Two companies, Lawnman Inc. and Tauro Co., are competing in the manufacture and sale of a new type of kryptonite-powered lawnmowers. Lawnman has a somewhat older plant and require…

Two companies, Rothko, LLC, and Calder & Co., are racing each other to be the fi

Two companies, Rothko, LLC, and Calder & Co., are racing each other to be the first to apply new deep-water drilling technologies to an oil deposit. If Rothko, LLC gets to the…

Two computer firms, A and B, are planning to market network systems for office i

Two computer firms, A and B, are planning to market network systems for office information management. Each firm can a fast, high quality system (H), or a slower, low quality syst…

Two computers firms. A and B. are planning to market network systems for office

Two computers firms. A and B. are planning to market network systems for office Information management Each firm can develop either a fast, high quality system (H), or a slower, l…

Two conflicting definitions of absolute poverty: which is correct? On poverty.or

Two conflicting definitions of absolute poverty: which is correct? On poverty.org.uk: Absolute poverty refers to a set standard which is the same in all countries and which does n…

Two construction companies are lobbying to obtain a share of work on repaving ci

Two construction companies are lobbying to obtain a share of work on repaving city streets. The share of the project going to each firm depends on money contributions to the mayor…

Two construction companies are lobbying to obtain a share of work on repaving ci

Two construction companies are lobbying to obtain a share of work on repaving city streets. The share of the project going to each firm depends on money contributions to the mayor…

Two countries, A and B, have different growth rates of GDP,inflation, and popula

Two countries, A and B, have different growth rates of GDP,inflation, and population. Country A's GDP grew by 7% fromyear 1 to year 2. Country B's GDP grew by 5% during the sameti…

Two countries, FIN and RUS, produce vodka (V) and caviar (C) using only labour.

Two countries, FIN and RUS, produce vodka (V) and caviar (C) using only labour. The unit labour requirements for the two goods and the two countries are: Which of the following is…

Two countries, Haiti and the Dominican Republic, produce fruits and timber. Each

Two countries, Haiti and the Dominican Republic, produce fruits and timber. Each island has a labor force of 1200 and the monthly productivity of each worker is as follow Basket o…

Two countries, Orange Rose and Blue Violet, produce only two goods: tea pots and

Two countries, Orange Rose and Blue Violet, produce only two goods: tea pots and coffee pots. Orange Rose Blue Violet Tea Coffee pots Tea pots Coffee pots The table gives their pr…

Two countries, Play land and Work land have similar populations, identical PPCs

Two countries, Play land and Work land have similar populations, identical PPCs but different preferences. The two countries production possibilities are Point Capital Goods Consu…

Two dairy farmers, Albert and Brandon, share a common pasture. Each has a choice

Two dairy farmers, Albert and Brandon, share a common pasture. Each has a choice of grazing 1 or 2 cows on the pasture. If 2 cows graze on the pasture, each will give 2500 gallons…

Two days ago you bought a used car from a former roommate for $3,000. The sale i

Two days ago you bought a used car from a former roommate for $3,000. The sale is final. Today it broke down. You find that the car requires repairs of $1,200 in order to get it t…

Two depository institutions have composite CAMELS ratings of 1 or 2 and are “wel

Two depository institutions have composite CAMELS ratings of 1 or 2 and are “well capitalized.” Thus, each institution falls into the FDIC Risk Category I deposit insurance assess…

Two design alternatives A and B have the following cash flows. Each alternative

Two design alternatives A and B have the following cash flows. Each alternative has 30-year life at a 5% interest rate. Alternative A Alternative B Initial Cost $700,000 $950,000 …

Two different methods are being considered for elevating rock into a crusher. It

Two different methods are being considered for elevating rock into a crusher. It is expected that the rock crusher will be in service for 6 years. Estimated disbursements for the …

Two division managers at King Size Manufacturing have been in a long discussion

Two division managers at King Size Manufacturing have been in a long discussion with top management about allocation of capital spending over the next three years. The current pla…

Two division managers at King Size Manufacturing have been in a long discussion

Two division managers at King Size Manufacturing have been in a long discussion with top management about allocation of capital spending over the next three years. The current pla…

Two division’s managers at King Size Manufacturing have been in a long discussio

Two division’s managers at King Size Manufacturing have been in a long discussion with top management about allocation of capital spending over the next three years. The current p…

Two drivers are running late to work and approach a four-way stop at the same ti

Two drivers are running late to work and approach a four-way stop at the same time. Both drivers consider running the stop sign so that he can make it to work on time. However, if…

Two economists agree that labor market discrimination against certain workers un

Two economists agree that labor market discrimination against certain workers unfairly leads to lower wages for the disfavored group. Economist X argues that government interventi…

Two economists are debating whether or not to remove a tariff on luxury vehicles

Two economists are debating whether or not to remove a tariff on luxury vehicles. They agree that consumers will benefit by $5 billion and that the harm done to domestic businesse…

Two economists from Northwestern University estimated the benefit households rec

Two economists from Northwestern University estimated the benefit households received from subscribing to broadband Internet service. The economists found that A) the consumer sur…

Two economists, Lynch and Wyatt, are discussing the currently high unemployment

Two economists, Lynch and Wyatt, are discussing the currently high unemployment rate. Lynch says that something ought to be done quickly since the economy may not be able to resto…

Two electric motors are being considered for installation in elevator system. Bo

Two electric motors are being considered for installation in elevator system. Both have 5 years life and an interest rate of 10% per year. At what number of hours of annual usage …

Two electric motors are being economically evaluated for use in a submersible ro

Two electric motors are being economically evaluated for use in a submersible robotic device. Each is capable of delivering 90 horsepower to a necessary application that the devic…

Two engineering designs are considered for an engine parts. The designer has a c

Two engineering designs are considered for an engine parts. The designer has a choice of specifying either an aluminium alloy casting or a steel casting. The both materials will p…

Two equal sized newspapers have overlap circulation of 10% (10% of the subscribe

Two equal sized newspapers have overlap circulation of 10% (10% of the subscribers subscribe to both newspapers). Advertisers are willing to pay $10 to advertise in one newspaper …

Two factories dump their waste in a river. This has led to the contamination of

Two factories dump their waste in a river. This has led to the contamination of the water which is also used in the production process. The matrix below shows the profits of the t…

Two factories, 1 and 2, in a small town both emits some hazardous air pollution.

Two factories, 1 and 2, in a small town both emits some hazardous air pollution. Both factories simultaneously choose the quantity of outputs, qi for i = 1, 2, which bring them mo…

Two fast food restaurants (burgbite and MacKrunch ) are examining their profit p

Two fast food restaurants (burgbite and MacKrunch ) are examining their profit payoffs under two different pricing scenarios for their premium cheese burgers - using the below ima…

Two financial choices are available. We will compare them using the standard cri

Two financial choices are available. We will compare them using the standard criteria that the Annual Worth of one is greater than the annual worth than the other. The first choic…

Two firms (A and B) are planning to produce a new soft drink for the summer. The

Two firms (A and B) are planning to produce a new soft drink for the summer. The soft drinks produced by the two firms can differ only in the level of sugar, aside from that they …

Two firms (A and B) are planning to produce a new soft drink for the summer. The

Two firms (A and B) are planning to produce a new soft drink for the summer. The soft drinks produced by the two firms can differ only in the level of sugar, aside from that they …

Two firms (RowGen and ColCom) are considering either releasing their new product

Two firms (RowGen and ColCom) are considering either releasing their new product line month or next month (thus, they have two strategies "Now" and Later"). Both firms benefit fr …

Two firms A and B are attempting to sustain a cartel agreement. Each must decide

Two firms A and B are attempting to sustain a cartel agreement. Each must decide between cooperate (e.i stick to the cartel quota level of output) or cheat (ei. Produce beyond the…

Two firms are considering going out of business and selling their assets. Each c

Two firms are considering going out of business and selling their assets. Each considers what happens if the other goes out of business. The payoff matrix below shows the net gain…

Two firms are in the chocolate market. Each can choose to go for the differentia

Two firms are in the chocolate market. Each can choose to go for the differentiation focused high quality market or the cost focused low quality market. Resulting profits are give…

Two firms are planning their marketing strategies. Firm K can earn $35 million i

Two firms are planning their marketing strategies. Firm K can earn $35 million in profits from strategy S if firm L responds with strategy P, and $7.5 million in profit from S if …

Two firms can control emissions at the following marginal costs: MC1 = 200q1, MC

Two firms can control emissions at the following marginal costs: MC1 = 200q1, MC2 = 100q2, where q1 and q2 are the amount of emissions reduced by the first and second firm. Assume…

Two firms compete by advertising. Given the payoff matrix to this advertising ga

Two firms compete by advertising. Given the payoff matrix to this advertising game, identify each firm's best response to its rival's possible actions. If Firm 2 does not advertis…

Two firms compete by setting prices of identical products. Consumer purchase fro

Two firms compete by setting prices of identical products. Consumer purchase from whichever firm offers the lowest price. Market demand is given by P 300-Q (a) If MCA 100 and MCB …

Two firms compete in a homogeneous product market where the inverse demand funct

Two firms compete in a homogeneous product market where the inverse demand function is P = 20 -5Q (quantity is measured in millions). Firm 1 has been in business for one year, whi…

Two firms compete in a homogeneous product market where the inverse demand funct

Two firms compete in a homogeneous product market where the inverse demand function is P = 20 -5Q (quantity is measured in millions). Firm 1 has been in business for one year, whi…

Two firms compete in a homogeneous product market where the inverse demand funct

Two firms compete in a homogeneous product market where the inverse demand function is P = 10 -2Q (quantity is measured in millions). Firm 1 has been in business for one year, whi…

Two firms compete in a homogeneous product market where the inverse demand funct

Two firms compete in a homogeneous product market where the inverse demand function is P= 10-2 Q (quantity is measured in millions). Firm 1 has been in business for one year, whil…