Tions of Bertrand's duopoly mole? ( 2 pt.) 5. What are Cartels? (1 pt.)
IV. Work out questions (4 marks)
Suppose that the demand function facing two duopolistic under Cournot's model is
Q = 250-10/25p, where Q = Qi+Q2
and the cost function are
Cl = 10 Q, and C2 = 20Q2
Then
a) Derive the reaction function of each dupoplist.
b) Determine the price and output of each firm
c) Calculate the profit level of each firm
d) Show graphically the cournots stable equilibrium point!

Compare the sources of consumer credit 1. consumers use a prearranged loan using special checks 2. consumers use cards with no interest and non -revolving balances 3. consumers pay off debt and credit is automatically renewed 4. consumers take out a loan with a repayment date and have a specific purpose a. travel and entertainment credit b. revolving check credit c. closed-end credit d. revolving credit

Jennifer purchased a house in a brand new development in the outskirts of town. when her house was built, the nearest fire department was nearly 20 miles away. as her neighborhood developed, the density of the community called for a new fire department 1.5 miles away. what effect will the new fire station have on her homeowners insurance premium? a. a new fire department will be more demanding on local taxes. her annual premium will go up. b. the location of a fire department has no bearing on the value of her house. her annual premium will stay the same. c. the new fire department will reduce the risk of financial loss in her home. her annual premium should decrease. d. with a fire department so close (less than 5 miles), financial risk on jennifer’s home practically disappears. she will not need to pay insurance anymore.

If the findings and the results are not presented properly, the research completed was a waste of time and money. true false