If two identical firms with marginal cost 5 and demand curve P=70-2Q compete using the Cournot model, find Q1. Select one: O a. 4.167. O b. 13.67. O c. 1.94. O d. 4.
Q: 2. Competition vs. Monopoly II: The Monopoly Widget Firm 20 30 40 60 Next, suppose that the industry…
A:
Q: Joan rents ovens at a local shared commercial kitchen to make cakes. The table below shows the…
A: Since price is constant, the market is competitive. Marginal product refers to change in total…
Q: saving rate. In this case, are there any steady states
A:
Q: List down at least 5 examples of the following: Security Regionalism Economic regionalism Political…
A: Security, economic and political regionalism are institutional arrangements designed for effective…
Q: 2. Consider a competitive price system (p-3, p-4) in a two-good economy. The preferences of…
A: Given price (p1,p2)=(3,4) and initial endowments (12,16)
Q: ) Using IS-LM, AS-AD and labor market curves, explain a recession caused by a decrease in investment…
A: The IS curve is the curve that shows the negative relationship between the interest rate and…
Q: 21 After the two firms buy or sell pollution permits from each other, what is the likely amount of…
A: As per the given information Net benefit for RAS by playing stereo=$700 Cost to Mariam from Ras's…
Q: Competitor enters market Competitor does not enter market 0.5 0.5 Sell business 41 4 Do nothing -8…
A: Given pay off matrix
Q: In business forecasting using multiplicative decomposition which data component do you use to…
A: Business forecasting is the practice of making educated assumptions about particular business…
Q: The Lahiri family rents a room in their home on Airbnb. They deposit all of the money that they earn…
A: If we need to calculate the value at the end of some specific time period then this value is…
Q: l makes a deposit into her savings account at the local bank with $100 in cash. As a result of…
A: M1 = cash or coins held by public + demand or checkable deposits + traveller checks M2 = M1 +…
Q: The Lahiri family rents a room in their home on Airbnb. They deposit all of the money that they earn…
A: Revenue is the total measure of cash an organization procures by selling items and services at a…
Q: Compared to a firm hiring in a perfectly competitive market, firms operating as a monopsonistic…
A: In perfect competition there are large number of firms and in monopsony, there is only firm.
Q: 1. Production engineers of a manufacturing firm have proposed a new equipment to increase…
A: An investment of 500,000 a uniform annual revenue of 200,000 for 5 years a salvage value of 100,000.…
Q: 2) A firm has a project with no investment requirement, but it must raze existing buildings over a…
A: An investment's return on investment (RoI) is computed as a percentage of the investment's initial…
Q: Suppose the economy is in long-run equilibrium and wealth increases. In the short- run, the…
A: Long-run equilibrium denotes full employment equilibrium. It denotes the optimum amount of output…
Q: Economists argue for free trade in import markets because importing goods decreases total surplus no…
A: The Economists argue for free trade in the import markets because the gains to the US consumers…
Q: When CPI is calculated, chicken breasts are given greater weight than pork chops if a the price of…
A: Consumption prices are measured by the consumer price index (CPI), which tracks changes in the…
Q: 50 II 40 30 IV 20 10 10 20 30 40 50 Number of Turkeys Number of Chickens
A: Opportunity cost refers to the cost associated with the trade-off between two goods or services when…
Q: Which of the following actions by the Fed would cause interest rates to fall? A. Raising the…
A: The Fed can change the money supply by open market operations and by changing the reserve…
Q: What are the relevance of the state amid globalizations.
A: Globalization also fosters a sense of interdependence, which càn lead to power inequalities between…
Q: Suppose a firm with a production function given by Q = 30K0.5L0.5 produces 1,800 units of output.…
A: Firm minimizes cost by employing inputs at a point where ratio of marginal product of inputs is…
Q: 8) The market for paper in a particular region in the United States is characterized by the…
A: Given; Demand function; QD=160000-2000PSupply function; QS=40000+2000PMEC=0.0006QS
Q: Compared to a competitive labor market, workers participating in an inclusive union will enjoy…
A: In a competitive labor market, equilibrium wage rate is determined by the intersection of demand and…
Q: Are traditional international business theories, such as the Uppsala model, still applicable to…
A: The Uppsala model of internationalization of multinational enterprises (MNEs) explains how MNEs…
Q: Consider the following graph of the market for chemical solvents, production of which damages a lake…
A: The external cost occurred during the economic activity by the firm, community or individual in…
Q: 7
A: The outcome of a situation of interactions between persons with competing interests is studied by…
Q: The figure shows the graphs of the cost and revenue functions for a company that manufactures and…
A: A break-even point is the point at which a company's costs and revenues equal each other, often…
Q: The manager of a Pittsburgh shop wishes to sell on eBay a used telescope that is in good condition,…
A: The average amount that a prospective buyer is willing to pay: (Probability)(High Quality) +…
Q: 19 . 11. Excise Tax on Monopoly with Linear Demand and Constant MC A monopoly has the total cost…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: competitive firm has a single factory with the cost function C(q) = 5q² + 79 and produces 32 units…
A: The marginal cost of creation is the adjustment of complete creation cost that comes from making or…
Q: Assume the required reserve ratio is 10% and the Open Market Committee of the FED sells $100 billion…
A: The reserve ratio is the piece of reservable liabilities that commercial banks should clutch, as…
Q: QUESTION 2 If Z = (XY)2, and we know that the annual growth rate of Z is 3%, and the annual growth…
A: Growth rates refer to the percentage change of a specific variable within a specific time period.…
Q: Maria is preparing for a job interview at a local hospital. Based on what you know about…
A: Identifying a decision, acquiring information, and evaluating possible remedies are all steps in the…
Q: Suppose Mattel, the producer of Barbie dolls and accessories (sold separately), has two types of…
A: *Answer:
Q: Most individuals and businesses cannot pay for large economic losses, so they share the risk with…
A: Most people and organisations cannot afford to pay for huge financial losses, so they buy insurance…
Q: The Return of Detroit City: Enpar manufactures engine parts for Ford using steel as an input. Enpar…
A: Answer: Given, Production functions: Detroit:QD=12SD-0.25SD2QG=42SG-0.5SG2WhereQD=Outputs of engine…
Q: Price Level ILL eakt reincorporating romaine lettuce into their diets, even after the FDA deems its…
A: Aggregate demand is sum the sum of consumption, investment, government spending and net exports in…
Q: Monopoly Product: Daktronics Scoreboar For the given graph: • Shade the area for TR* on graph.…
A: Below is the curve showing the TR area in green colour.
Q: How do Tribal businesses compare to minority and other businesses in the US?
A: Any company or economic operation entirely owned by the Tribe, regardless of the form of the…
Q: Portia Grant is an employee who is paid monthly. For the month of January of the current year, she…
A: Given:- Total earned=$8938FICA tax for Social security=6.2%FICA tax for medicare=1.45%FUTA…
Q: Consider an economy as described in clas and is frther characterized by C =cY, with e=0.75, T=…
A: Given:C= 0.75*YT=0G=250NX = 250I = 500 -5000*r From (C) part r = 0.06 (a) Income equilibrium of…
Q: State whether each of the statements is TRUE or FALSE, and with one or more sentences and (if…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: Based on what you have learned so far, provide your response to cach item below. 1. Refer to the…
A: Dear learner you have posted a question with multiple sub parts, as per our policy we have solved…
Q: 1. Suppose a worker can survive by daily consumption of S40 value of commodities as determined by…
A: Marxian economics is a school of economic philosophy founded on the ideas of 19th-century thinkers…
Q: Explain why an industry with economies of scale for larger firms tends to be an oligopoly. Why don't…
A: The cost advantages which is reaped by companies when production becomes efficient is known as…
Q: In the standard AS-AD framework, after a positive one-period inflation shock at time t (that is, ō,…
A: inflation is the pace of increase in costs throughout a given timeframe. inflation is commonly a…
Q: An Engineer has acquired a dump truck for Php 750,000. It is expected that the new truck will…
A: Annual worth or AW is referred to as the easy way of understanding the annual amount, for instance,…
Q: Find the marginal & the average functions for each of the following total function, evaluate them at…
A: Average Function : Total Function/Q Marginal Function : dTotalfunction/dQ
Q: If the labor force of 160 million people is growing by 2.6 percent this year, how many new jobs have…
A: Given: The labor force is = 160 million Growing at a rate of = 2.6% To Find: The new jobs to be…
Step by step
Solved in 3 steps
- If two identical firms with no cost and demand curve P=20-2Q compete using the Cournot model, find price. Select one: a. 12.24. O b. 4.167. O c. 2.5. O d.4.1. In the basic Cournot model, both firms have constant marginal costs, c, and no fixed costs. Show what happens in this model if both firms face a fixed cOst of F.If two identical firms with marginal cost of 2 and demand curve P=50-4Q compete using the Cournot model, finc profit 2 Select one: O a. 5. O b. 70. O c. 69.43. O d. 23.75.
- Firms J and K produce compact-disc players and compete againstone another. Each firm can develop either an economy player (E)or a deluxe player (D). According to the best available marketresearch, the firms’ resulting profits are given by the accompanyingpayoff table.a. The firms make their decision independently, and each is seeking itsown maximum profit. Is it possible to make a confident predictionconcerning their actions and the outcome? Explain.Firm KE DE 30, 55 50, 60 Firm JD 40, 75 25, 50b. Suppose that firm J has a lead in development and so can move first.What action should J take, and what will be K’s response?c. What will be the outcome if firm K can move first?4. What type of industry is best described by the "pure" Bertrand model? By the Cournot model? By the "smooth" Bertrand model? Explain why.Please solve D and E part only. Thankyou. Consider three firms, each with cost function C(qi)=4qi, currently competing Cournot. Market demand is P = 20 – Q. a. a. Find the quantities, price, and profits of each firm in equilibrium. b. Imagine firms1 and 2 merged to become one, so after the merger there are now two firms left in the market, firm 1&2 and firm 3. Assume there are no cost efficiencies expected and assume that the two firms play Cournot as before. Find the quantities, price, and profits of each firm in equilibrium c. Was it profitable for firms 1 and 2 to merge in the first place? d. Continuing with b., imagine that firms did not play Cournot after the merger, but rather that the merged firm 1&2 became a Stackelberg leader after the merger and firm 3 became the Stackelberg follower. If this were the case, find the quantities, price, and profits of each firm in equilibrium. e. Was it profitable for firms 1 and 2 to merge in the first place? Did price…
- 2. Suppose that two firms with zero marginal costs are facing the inverse demand P=240-Q. Show that it is more advantageous to be the leader and announce your output decision first.Please help me ASAP. I will really appriciate it. Thank you Assume a Nash-Cournot equilibrium. How much output does firm 1 produce? Assume a Nash-Cournot equilibrium and no fixed cost. How much profit does firm 2 make? Now assume a collusive equilibrium. What is firm 1's output?Suppose you’re operating one of only two coffee shops in town. Assume that both coffee shops produce identical coffee so that customers only care about the price. That is, you’re engaged in Bertrand competition. If you know that the other coffee shop charges $5 for a 16oz coffee, what price should you set for your 16oz coffee? Question 22Answer a. $4.99 b. $5.01 c. $5.00 d. $6 e. $4
- This pertains to the Cournot model except that a. Both firms maximize profit b. Each firm anticipates the price movement of the other c. There are only 2 firms in the industry d. Each firm takes the output as givenWhat term refers to companies shaping their actions based on what their competitors do? O allocative efficiency long run equilibrium mutual interdependence productive efficiency1. Two firms (A and B) play a competition game (i.e. Cournot) in which they can choose any Qi from 0 to ¥. The firms have the same cost functions C(Qi) = 10Qi + 0.5Qi2, and thus MCi = 10 + Qi. They face a market demand curve of P = 220 – (QA + QB). a. Assume firm A chooses quantity first. Frim B observes this choice and then chooses its own quantity. What is Frim B's profit as a function of QA and QB? b. Firm B has MRB = 220 – 2QB – QA. What is firm B’s best response to an arbitrary QA selected by firm A? c. Given that firm A expects firm B’s best response, what is firm A’s profit as a function of QA? (Hint: the only unknown variable in the profit function should be QA) d. Firm A has MRA = 150 – 4QA/3. What are the equilibrium QA and QB selected in this game? e. What is the equilibrium price, and how much profit does each firm collect?