Equilibrium price and quantity of turbines produced
Course:- Business Economics
Reference No.:- EM131108725

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Business Economics

Assume that the market for wind turbines is a Bertrand oligopoly with two producers: General Electric (an American company) and Nordex (A German company). The U.S. market demand for wind turbines is given below. The marginal cost for each firm is $80,000. There are no costs of shipping turbines from one country to the other.P=100,000−20Q

1. What will be the equilibrium price and quantity of turbines produced and sold by each company if there is free trade? How much profit will each firm earn?

2. Suppose that the German government agrees to voluntarily limit exports of wind turbines to the United States to 500 units. How many turbines will General Electric sell in the United States and what price will it charge? How much profit will each firm earn?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
Give two examples of possible net surpluses that three voters get from two possible political alternatives A and B. Construct your first example so that the alternative that w
When barriers to foreign trade are reduced and firms are able to sell in many different markets, firms are likely to become less specialized and smaller. If a new product from
a. Briefly explain how a map is a model. b. Given an example of how a particular model can be appropriate in one context and inappropriate in another. c. Identify the two attr
Calculate the unit cost of a product if the material cost is $3 per unit, labor is $5 per unit, and over­head is calculated at a rate of 150% of labor. The first cost of the e
Suppose that velocity is constant at 10, but the nominal money supply increases from $1.1 to $1.21 trillion. Elucidate what must happen to nominal output.
WHAT KIND OF BUSINESS IS THIS? After graduating from college, Shelley Williams held several different jobs but found that she did not enjoy working for other people. Finally,
The company has three plants and they are located 30 miles apart, one on the north side of town, one on the south side, and one on the west side of town. Draw an organizationa
With respect to the §2 component of the case, how did the government define the “relevant market”? What evidence was given to prove that Dentsply enjoys monopoly power in the