The firm’s profit is 

The firm’s profit is 

Firm A and Firm B are duopolists. Each firm has two strategies: spend $30,000 a year on research and development (R&D) or spend nothing on R&D. If neither firm spends on R&D, Firm A’s economic profit is $80,000 and Firm B’s economic profit is $40,000. If each firm conducts R&D, market shares are maintained, but each firm’s profit is lower by the amount spent on R&D. If Firm A conducts R&D and Firm B does not, Firm A makes an economic profit of $120,000, while Firm B incurs an economic loss of $20,000. If Firm B conducts R&D and Firm A does not, Firm B makes a profit of $60,000 while Firm A loses $10,000. The Nash equilibrium indicates that

The efficient scale for this firm is where _________.

Firm A and Firm B are duopolists. Each firm has two strategies: spend $30,000 a year on research and development (R&D) or spend nothing on R&D. If neither firm spends on R&D, Firm A’s economic profit is $80,000 and Firm B’s economic profit is $40,000. If each firm conducts R&D, market shares are maintained, but each firm’s profit is lower by the amount spent on R&D. If Firm A conducts R&D and Firm B does not, Firm A makes an economic profit of $120,000, while Firm B incurs an economic loss of $20,000. If Firm B conducts R&D and Firm A does not, Firm B makes a profit of $60,000 while Firm A loses $10,000. The Nash equilibrium indicates that

When strategic interactions are important to pricing and production decisions, a typical firm will 

The efficient scale for this firm is where _________.

Questions 44 and 45 refer to the following. A monopolistically competitive firm faces the following demand schedule and cost data. Quantity Q Price P Total Cost TC 10 $50 $800 20 42 875 30 34 1,025 40 26 1,250 55 18 1,550 60 10 1,925 70 2 2,375 To maximize its profit, the firm will produce _________units of output.

Derive the equation of the aggregate demand curve. A)

In the IS–LM model, a decrease in the interest rate would be the result of a(n):