5

I think you have a typo in your $q_0$: the exponent of $N$ should be $-\frac{b}{a+b}$. I did the whole calculus with this corrected type of $q_0$ and I was able to replicate your results (this is why assume $q_0$ has only a typo and you actually did the algebra with the correct $q_0$). I suggest that the discrepancies to the paper are indeed connected to ...


3

I have quickly skimmed the chapter and there does not seem to be much about bargaining models so as the question says you have to solve this using supply and demand. We know that an equilibrium price on the market will occur when supply intersect demand. Given that the supply is fixed at $24$ and $25$ apartments respectively it will be just straight vertical ...


2

What your school economics textbook must say is that : "In a Perfectly Competitive Market (PC), firms maximize profits when MC= P ". This equality applies only to firms in a perfectly competitive market. This is because, in a Perfectly Competitive Market there is an infinite number of buyers and sellers and the prices are set by the overall market forces,...


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