8. There are several identical firms in a market. The cost function of firm i is q? +q, where qi is the output of this firm, and q is the sum of other firms' output. The market demand is q(p) = - p. We assume that all firms are Cournot oligopolists, and the market is free entry. In equilibrium the number of firms in the market is A. 5 C. 3 D. 2 B. 4
Q: uppose the information in the following table is for a simple economy that produces only the…
A: Real GDP= Current year quantity ×base year price
Q: 1) When the quantities we are dealing with are relatively large, we can identify total consumer…
A: Since you have asked multiple MCQs, we will be solving only the first three. Please repost and…
Q: 3. Kevin's willingness-to-pay for a wing is the following function of Q, the number wings consumed:…
A: The money that a person receives from selling a commodity is referred to as Total Revenue. The…
Q: You are the primary engineer overseeing your company's best-selling product line. Even though the…
A: The cost of buying parts from 3rd party is $3.75 per part.Annual production or sale =1 million or…
Q: a. Income elasticity for meals at restaurants is b. Income elasticity for cups of coffee is c.…
A: Income elasticity of demand measures the responsiveness of the demand for a good or service to the…
Q: Explain the idea of asymmetric paternalism, and give an example of an asymmetrically paternalistic…
A: Health behavior implies the actions and choices individuals make that impact their health and…
Q: 1) Complete the following table: Output 10 2 3 4 56 Total Cost 50 60 75 100 150 225 400 Variable…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: Currentlyyouworkfor40hoursperweekatthewagerateof$20anhour.Your free hours are defined as the number…
A: The remuneration or payment that an employer gives to a worker for the work they have performed over…
Q: Consider the non-linear aggregate consumption function: C = 0.05Y²+ Y + 80 (Where, C= aggregate…
A: "Since it is not mentioned the specific question to be answered, we are providing solutions to the…
Q: An experiment is conducted that provides the data in the accompanying table. Number of vehicles…
A: Price elasticity is calculated as the percentage change in quantity divided by the percentage change…
Q: 3. Assume that the islanders of Bora Bora drink beer, which is sold only in bars that belong to a…
A: P=10-0.5QdThere are 20,000 islandersMC=1 per glassThere is no fixed cost
Q: Nadine Chelesvig has patented her invention. She is offering a potential manufacturer two contracts…
A: Annual worth, in economics, refers to a method used to evaluate the financial desirability of an…
Q: Consider a good for which the per-period inverse- demand is p = v — Q. There are two periods and no…
A: Note:- Dear learner you have posted a question with multiple sub parts, we have solved only first 3…
Q: Two projects (A & B) are under consideration for landscaping improvements at a small company's…
A: The initial cost of Project A is 15000 and the initial cost of Project B is 12000 so incremental…
Q: The following graph plots a supply curve for some hypothetical good. PRICE IDelars per un QUANTITY…
A: The mid point formula for the elasticity of supply is given asSuppose price increased from p1 to p2…
Q: Capitalized cost is an application of perpetuity. It is the sum of the first cost and the present…
A: Replacement required at every years.
Q: Malaysia aims to modernise its agriculture sector to boost productivity through modern technologies,…
A: Agriculture contributes 12% to Malaysia's GDP, while approximately 16% of the country's population…
Q: On the previous graph, place the green line (triangle symbols) to indicate the new money supply…
A: Money demand refers to the desire of individuals and firms to hold money for transactions,…
Q: Please write this at least 1500 word. Must write this in 1500 word please and also provide the…
A: The International Monetary Fund (IMF) is an independent international organization and a cooperative…
Q: Present a chart (s) showing currency in circulation, M1 and M2. What factors account for the recent…
A: M1 form of money supply includes liquid assets that includes currency transactions along with the…
Q: Next, complete the following graph, labeled Scenario 2, by shifting the supply and demand curves in…
A: The supply and demand curve is a graphical representation of the relationship between the quantity…
Q: Is the statement true/false/uncertain - The fact that there are many theories of the current account…
A: The current account is a component of a country’s balance of payments. It records a nation’s…
Q: Ralph usually buys one Pizza and 2 colas from the local pizzeria. The pizzeria announces a special:…
A: The budget constraint is the locus of all affordable consumption bundles at the given income of the…
Q: 14. A supply and demand puzzle The following graph presents the market for sweaters in 2015. Between…
A: Equilibrium is where the demand curve intersects the supply curve. Decrease in quantity will be when…
Q: Garments Garments OI O II ||| (III) OIV - (1) Cars Cars Garments Garments (11) Which of the graphs…
A: The Production Possibility Frontier (PPF) is a graphical representation of the maximum output…
Q: Q1. Assume that the demand curve D(p) given below is the market demand for widgets: Q=D(p)=806−10p,…
A: To find the equilibrium price and quantity, we need to set the quantity demanded equal to the…
Q: Why does Mendelson see Europe as a harder market for venture capital than the United States or Brazi
A: It can be described as the concept in which The investment is provided to businesses that are in the…
Q: A consumer has $200 to divide between purchasing wine and quiche. Suppose wine costs $20 per bottle…
A: A budget line, also known as a budget constraint or income constraint, is a graphical representation…
Q: Consider the adverse labor supply shock is powerful enough so that in equilibrium, leisure increases…
A: Labor supply shock refers to a significant change that lessens the labor supply availability. The…
Q: Which of the following are domestic economic factors you would consider for macroeconomic analysis ?…
A: Gross Domestic Product (GDP) is a widely utilized economic indicator that measures the total value…
Q: In the late 90s’ construction slumps and low differentiation have led to significant price…
A: Total market demand=11000 unitsThere are 3 segmentsA= 60% of total demandB= 15% of total demandC=25%…
Q: Co. XYZ manufactures a productand sells it for $8 per unit. Her fixedcosts are $5,000 and her…
A: ***Since the student has posted a question with multiple subparts, hence the expert is required to…
Q: Suppose that a company that makes and sells hand-crafted artwork has a cost function C(x) = 24x +…
A: Profit is the dissimilarity between the revenue that an economic commodity has obtained from its…
Q: Maintenance cost for small bridge with an expected 50 year life are estimated to be $15,000 each…
A: First 8-year cost=$15000 per yearAt 17th year cost=$20000At 29th year cost=$30000Interest rate =10%…
Q: Telecommunication (broadband) in Singapore, comparing each film (Singtel vs M1 vs Starhub vs…
A: An oligopoly is a market structure in which a small number of dominant large firms control the…
Q: 2. What do we mean by "internalization" and how can we relate the concept of vertical integration…
A: "Internalization" refers to the process with the aid of which a firm expands its operations by using…
Q: Green et al. (2005) estimate the supply and demand curves for California processed tomatoes. The…
A: Market equilibrium: At the market equilibrium we have demand equals to supply. Or at market…
Q: Assume that the demand curve D(p) given below is the market demand for widgets: Q=D(p)=2372−19p, p >…
A: When the quantity of supply and demand are equal, equilibrium occurs. It is found by equalizing the…
Q: Define balance of payments. о The difference between receipts and payments The difference between…
A: The BOP provides information about a nation's economic connections to the rest of the globe. It…
Q: b. Calculate the profits (or losses) for this typical firm. per month c. At this market price, will…
A: Firm produces at the point where P=MC since, in perfect competition price is constant and equal to…
Q: II. Graph it out and explain. Make sure that your labels are complete and correct. Suppose the only…
A: Foreign exchange is the process of converting one currency into another at a predetermined rate. It…
Q: The three types of accounts related to balance of payments are:
A: The balance of payments is a statement that shows the transactions made by a country’s residents,…
Q: Please no written by hand and no emage Consider a small economy that is closed to trade, so its net…
A: Conventional national income models may be used to explore the factors that influence economic…
Q: Price 16 14 12 10 8 6 42 0 0 0 $16 0 $12 $8 1 2 3 4 Quantity 5 Supply = MC 6 Demand MB 7 = 8 Using…
A: Marginal Cost:Marginal cost is the additional cost incurred by a firm or producer when it produces…
Q: O Macmillan Learning The accompanying diagram represents the market for violins. Suppose that a new…
A: Since you have posted a question with multiple sub-parts, we will provide the solution to only the…
Q: A monopolistic firm operates in two separate markets, Market A and Market B. The firm can sell its…
A: A company that is the only seller of a product (monopolistic firm) can change prices based on where…
Q: s and labor has shifted to the left, while wages are sticky and remain at the same level and prices…
A: It can be described as the concept in which wage is not flexible to the response of the change in AD…
Q: This assignment is designed to develop skills in collecting and assessing market information and…
A: Market Power:Market Power refers to the ability of a firm or a group of firms to influence the…
Q: After developing the new Personal computer with special functions the company would need to be…
A: Production costs are the costs related to producing a good or providing a service. They consist of…
Q: Compare both the Scenario 1 and Scenario 2 graphs. Notice that after completing both graphs, you can…
A: Market demand curve for a commodity can shift as a result of a change in consumers income, their…
Step by step
Solved in 3 steps with 19 images
- 6. Two firms, Firm 1 and Firm 2 and are engaged in Cournot competition. The inverse demand they are facing is given by p = 50-q, with p being the price of the good, and q being total quantity demanded, given by q = 91 +92, where 9₁ and 92 are the productions of firm 1 and 2 respectively. The total cost of firm 1 is TC1(91) = q and of firm 2 is TC₂ (92) = 292. (a) Find the Cournot equilibrium and the price that corresponds to it. (b) Find the Lerner Index of each firm.1. which compete in quantities (Cournot -Nash equilibrium = C) 2. which compete in quantities with the first firm (the Leader) choosing the output first (Stackelberg competition = S). 3. which collude and choose quantities in order to maximize the joint profits (behave like two plants of a multiplant monopoly = M).1. Consider two duopolists who each have a constant marginal cost c = e2 = 3 and face inverse demand P = 15 – Q,where Q = Q1 + Q2 is the total output of both firms. 1. Find the Cournot equilibrium quantity for each firm, the resulting market price, and the profits for each firm. 2. Find the Stackelberg equilibrium quantities for each firm, and the price, and the profits for each firm supposing that Firm 1 is the industry leader. 3. Suppose that Firm 2 figures out a way to lower its marginal cost to ez = 0 while firm 1 still has a marginal cost equal to 1: c = 3. How does this affect the Cournot equilibrium quantities, price, and profits? 4. How does this affect the Stackelberg equilibrium (with Firm 1 still as the leader) quantities, price, and profits?
- Please1. Consider the (inverse) market demand function for the market in streaming services. P = 120 - 4Q Assume further that the available technology results in Marginal Cost equal to $40. a) Graphically show the market outcome for monopoly, Cournot oligopoly and perfect competition. b) For monopoly, Cournot duopoly and perfect competition determine the optimal outcome. Clearly explain how you arrive at your answer. What are the market price and quantity under each market structure? c) What are the consumer surplus, producer surplus and total surplus under each scenario? d) Show the reaction function under Bertrand competition. What are the associated price and quantity?1. Suppose there are two firms who are Cournot duopolists (set quantity simultaneously) in the wine business. The inverse demand for wine is given by P(Q) = 300 – 0.20. One firm has marginal costs of $45 and the other firm has marginal costs of S30. What is the total output produced in the market?
- Assume firms' marginal and average costs are constant and equal to c and that inverse market demand is given by P = a - bQ where a, b > 0. Suppose now the market is served by 2 firms (one leader, and one follower) that choose quantities for their identical products. Calculate: i. ii. iii. iv. The Nash equilibrium quantities for the Stackelberg duopolists Market output Market price Firm profitPleaseConsider a duopoly market with 2 firms. Aggregate demand in this market is given byt Q = 500 – P, where P is the price on the market. Q is total market output, i.e., Q = QA + QB, where QA is the output by Firm A and QB is the output by Firm B. For both firms, marginal cost is given by MC = 20, i=A,B. « Assume the firms compete a la Cournot. e a) Find the inverse demand in this market. Note that marginal revenue for both firms is given by MRA=500-2QA-QB, MRB=500-QA-2QB. b) Describe what a best-response curve is and how to find it. c) Derive the best-response function for each firm. d) What are the equilibrium quantities? e) What is the total quantity supplied on this market? f) What is the equilibrium price in this market?
- 3. for two firms that share a market if demand p=300-q where q is the total quantity sold and fixed cost is 300 and MC is 20 and suppose if the firms are in collusion and the first firm decides to cheat ,how much will the first firm produce ,what will its "p " be and profit be and how much will it exceed the second firm.Also then if both firms collude but both cheat then what will each firm make profit?Help me please3. Reuben and Simeon are duopolists producing jeans in a differentiated goods market. The market demand for Reuben's jeans is y₁ = 75 − P₁ + P2, while the market demand for 1 1 Simeon's jeans is y₂ = 75 − P2 + ₂P₁. Reuben's cost function is C₁(y₁) = 75y₁ while Simeon's cost function is C₂ (y₂) = 75y2. a) Calculate the Bertrand equilibrium in this market. Indicate each firm's price, output level, and profits. (Answer: p₁ = 100 USD, y₁ = 25 units) b) Find prices and output levels that would maximize joint profits, and calculate the maximum joint profits. c) Draw a payoff matrix using the results from a) and b) and determine the Nash equilibrium.