Draw a Graph That Shows the Effect on the Equilibrium

question 31

Essay

Draw a graph that shows the effect on the equilibrium quantities if the government subsidizes one firm in a Cournot duopoly with a per-unit subsidy.Assume that the best-response functions are linear.Explain the new equilibrium quantities.

Distinguish between short run and long run in terms of input variability.

Grasp the concept of diminishing returns and its effects on cost and production.

Understand the role of scale economies in long-run cost behavior.

Understand the impact of first impressions and biases on the hiring process.

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Definitions:

Capital Goods

Capital goods are tangible assets such as buildings, machinery, and equipment that a business uses to produce goods or services.

Marginal Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen, especially in the context of resource allocation.

Production Possibilities Schedule

A table that shows the different combinations of two goods that can be produced with fixed resources and technology.

Tanks

Armored combat vehicles with heavy firepower and strong defensive capabilities, primarily used by military forces in ground warfare.