Answer appropriately :

Consider the following variant of the Dixit model that we discussed in class: In the market for microwaves, there is an incumbent (firm 1) and a potential entrant(firm 2). The demand function is given by: P = 600.01(q1 +q2) where q1 is the output of the incumbent and q2 is the output of the entrant. Firms need two units of labourand one unit of capital to produce one unit of output. Labour costs w = 10 per unit and capital costsr = 15 per unit. In addition, the entrant has to pay a fixed cost of F2 to enter this market. At period T = 1, the incumbent chooses a level of capital investment K1 and at time T = 2, firms compete in quantities by buying inputs and producing outputs

a)What is the range of possible levels of investment for firm 1 that could be a part of the equilibrium for this game? That is, what is the lowest K1 that could be an optimal choice for firm 1 for some values of firm 2's fixed cost F2? What is the highest K1 that firm 1 could optimally choose?

b)What is the equilibrium outcome and profits of this game if the entrant has fixed costs F2 = 1000?

c)What is the equilibrium outcome and profits of this game if the entrant has fixed costs F2 = 2500?

d)What is the equilibrium outcome and profits of this game if the entrant has fixed costs F2 = 4000?

Please answer all parts with a step by step explanation in detail.

A five-year corporate bond and its benchmark government bond had the following yields over a one-month period: Beginning of Month End of Month Corporate bond yield 6.75% 7.00% Government bond yield 4.25% 4.75% Over this month, the price of the corporate bond most likely experienced: A) unfavorable macroeconomic and microeconomic factors, B) favorable macroeconomic factors and unfavorable microeconomic factors. C) unfavorable macroeconomic factors and favorable microeconomic factors.Three economic questions must be determined in all societies. What are they? ()a) What is the opportunity cost of production? Does the society have a comparative advantage in production? Will consumers desire the goods being produced? O b) What goods will be produced? How will goods be produced? For whom will goods be produced? ( c) What will the price of each good be? Who will produce each good? Who will consume each good? d) How much will be produced? When will it be produced? How much will it cost? How do microeconomics and macroeconomics differ? ()a) Microeconomics studies aggregate decision making, while macroeconomics examines individual decision making- (b) Microeconomics utilizes positive economic analysis, while macroeconomics utilizes normative economic analysis. c) Microeconomics is concerned with consumer behaviour, while macroeconomics is concerned with firm behaviour. ()d) Microeconomics studies individual decision making, while macroeconomics examines aggregate decision making