Suppose there are two suppliers of spring water in New York State labeled firm 1 and firm 2. Spring water is considered to be a homogeneous good. Let p denot the price per cubic feet of water, q1 quantity sold by firm 1, and q2 the quantity sold by firm 2 Both firms bear the same production cost of c1 c2 15 per cubic meters of water. New York inverse demand function for spring water is given by p= 120 where Q qi+ q2 denotes the aggregate industry supply of spring water in New York. Answer the following questions. (a) Compute the Cournot equilibrium (quantities, price, and profits).
(b) Find the Bertrand equilibrium (quantities, price, and profits). Now suppose the same game is repeated indefinitely in each period t 1, 2, 3,. denote the firms' common time discount factor. Let 6 E (0, 1)
(c) Define the Bertrand repeated game and compute its minimum threshold value of 6 that would make collusion sustainable.
(d) Define the Cournot repeated game and compute its minimum threshold value of 6 that would make collusion sustainable.

Which is the correct expansion of the term internet? a. internetwork b. institutional network c. instructional network d. international network

Why do you think the compensation plans differ at the two firms? in particular, why do you think kaufmann’s pays commissions to salespeople, while parkleigh does not? why does parkleigh offer employees discounts on purchases, while kaufmann’s does not?

Profits from using currency options and futures. on july 2, the two-month futures rate of the mexican peso contained a 2 percent discount (unannualized). there was a call option on pesos with an exercise price that was equal to the spot rate. there was also a put option on pesos with an exercise price equal to the spot rate. the premium on each of these options was 3 percent of the spot rate at that time. on september 2, the option expired. go to the oanda. com website (or any site that has foreign exchange rate quotations) and determine the direct quote of the mexican peso. you exercised the option on this date if it was feasible to do so. a. what was your net profit per unit if you had purchased the call option? b. what was your net profit per unit if you had purchased the put option? c. what was your net profit per unit if you had purchased a futures contract on july 2 that had a settlement date of september 2? d. what was your net profit per unit if you sold a futures contract on july 2 that had a settlement date of september 2