5. Suppose also we are in our simple two-input model with la…

5. Suppose also we are in our simple two-input model with labor being the variable input and capital being the fixed input. Suppose a firm has diminishing returns.  Then we can say that on a graph with “$” on the vertical axis and quantity, Q, on the horizontal axis, this firm

22. Consider the Best Response graph for price competition d…

22. Consider the Best Response graph for price competition duopoly with differentiated, substitute products. Which of the following changes could account for what is happening on this graph when Pepsi’s Best Response shifts downward and the new Nash Equilibrium prices for both are lower than before?