ECON 221 Chapter Notes - Chapter 1-4: Diamond Trading Company, Inverse Demand Function, And1
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Due oct 8 at the beginning of class. The assignment can be submitted individually or in groups of up to 4 students (one per group). Please include the names and student id of every member. The problem set must be typed or clearly hand- written. Please provide complete answers, including steps, calculations and explaining your reasoning. There is no make-up for problem sets and late problem sets will not be considered. Attention: ux refers to the unsolved exercise x in your textbook (3. Problems listed below including the ones assingned from your. Problem 1- speed and flexibility- an established retailer is facing possible competition from a rival. The established retailer can try to stave off entry by engaging in a costly advertising and price cutting campaign. The rival is fast and flexible, so its policy is to wait and decide at the last possible instant its entry choice. Spne: ( ads ; out in), outcome (3, 3).
