Khandi gives a presentation to advocate that her employer, Let-Us Ltd., which offers services such as personal shopping and event planning to assist busy professionals, expand its offerings to include dog walking. She decides to use the PREP method of justifying this position. Which of the following is an example of the third step in the method?
A. She cites a personal services company in another city that increased its business by adding dog walking to its services.
B. She describes how busy professionals view their pets as family members, almost like children.
C. She reiterates her position that adding dog walking to the company’s services would increase business.
D. She explains that many professionals feel guilty that their schedules do not allow them to give their pets enough attention.
E. She opens by clearly proposing that Let-Us, Ltd. add dog walking to its list of services for busy professionals.

Consider a two-firm industry. firm 1 (the incumbent) chooses a level of output q1. firm 2 (the potential entrant) observes q1 and then chooses its level of output q2. the demand for the product is p = 100 - q, where q is the total output sold by the two firms which equals q1 +q2. assume that the marginal cost of each firm is zero. a) find the subgame perfect equilibrium levels of q1 and q2 keeping in mind that firm 1 chooses q1 first and firm 2 observes q1 and chooses its q2. find the profits of the two firms-? 1 and ? 2- in the subgame perfect equilibrium. how do these numbers differ from the cournot equilibrium? b) for what level of q1 would firm 2 be deterred from entering? would a rational firm 1 have an incentive to choose this level of q1? which entry condition does this market have: blockaded, deterred, or accommodated? now suppose that firm 2 has to incur a fixed cost of entry, f > 0. c) for what values of f will entry be blockaded? d) find out the entry deterring level of q1, denoted by q1b, as a function of f. next, derive the expression for firm 1

Consider the labor market for computer programmers. during the late 1990s, the value of the marginal product of all computer programmers increased dramatically. holding all else equal, what effect did this process have on the labor market for computer programmers? the equilibrium wagea. increased, and the equilibrium quantity of labor decreased. b. decreased, and the equilibrium quantity of labor increased. c. increased, and the equilibrium quantity of labor increased. d. decreased, and the equilibrium quantity of labor decreased.

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