Consider an industry and two countries: the home country and the foreign one. all foreign variables are denoted with an asterisk. the average costs curves in the two countries are given by av = c0 − c1q and av ∗ = c∗0 − c∗1q∗. the inverse demand curves are equivalent in the two countries: p = d0 − d1q and p ∗ = d0 − d1q∗. assume d0 > c0 andd0 > c0∗ a) calculate the equilibrium prices and quantities in the two countries under autarky. under which conditions on parameters does the foreign country produce more? (3 marks) b) now consider the free trade equilibrium and assume that the country that produces more in autarky becomes the only world supplier. assuming that the conditions you stated under a) hold, compute the world equilibrium price and quantity under free trade. (4 marks) c) what is the per-unit production subsidy that would allow the other country to become the only world supplier under the conditions you stated in a)? (4 marks) d) identify the conditions on parameters under which the country that would not ex- port in part b) would be the most efficient world supplier (the lowest-price supplier) under the same assumption used in b), i. e. that only one country will be the world supplier

Jameson manages a well-known cell phone company. this company has been voted as having the best cell-phone service. consumers appreciate the fact that they can call from almost anywhere in the world and the service still gets through. jameson knows that the company's product far surpasses that of the competition. one thing has been bothering him, though. in order to put so many resources into ensuring the best service, jameson has cut back on employees at the firm's customer call center. recently, consumers have begun complaining about long wait times when they call in with a problem or concern. although its cell phone service is still considered one of the best, customer satisfaction with the firm's customer service has plummeted. jameson does not understand why consumers are getting so upset. he believes the exceptional cell phone service more than makes up for long waiting periods and other issues with its customer service. "after all," he says, "they can't have it all. if i invest more in customer service, that means less investment on ensuring the quality of our product offering."refer to scenario. jameson has asked you, a marketing consultant, to give him advice. he cannot understand how a cell-phone company with the best product offering in the cell-phone service industry could get such low satisfaction ratings simply because the customer service is not up to par. you suggest that jameson has a narrowly defined view of the company's product offering. you tell jameson that successful marketers should define their products as what they

Used cars usually have options: higher depreciation rate than new cars lower financing costs than new cars lower insurance premiums than new cars lower maintenance costs than new cars

At cooly cola, we are testing the appeal of our new diet one cola. in a taste test of 250 randomly chosen cola drinkers, 200 consumers preferred diet one cola to the leading brand. assuming that the sample were large enough, the large-sample 95% confidence interval for the population proportion of cola drinkers that prefer diet one cola would be: