Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Suppose instead that the firms in Problem 9 compete by setting quantities rather than prices. All other facts are the same. It is possible to rewrite the original demand equations as P1 = [150 - (2/3)Q 2] - (4/3)Q1 and P2 = [150 - (2/3)Q1- (4/3)Q 2. In words, increases in the competitor's output lowers the intercept of the firm's demand curve.
a. Set MR1 = MC to confirm that firm 1's optimal quantity depends on Q2 according to Q1= 45 - .25Q2:
b. Explain why an increase in one firm's output tends to deter production by the other.
c. In equilibrium, the firms set identical quantities: Q1 = Q2:
d. Find the firms' equilibrium quantities, prices, and profits.
e. Compare the firms' profits under quantity competition and price competition (Problem 9). Provide an intuitive explanation for why price competition is more intense (i.e., leads to lower equilibrium profits).
If the goal of the transit authority was to maximize total revenues, what is the new price it should set? Also, what would the total revenue raised in this new price scheme?
Firm A is the sole supplier of a certain product. A's marginal cost equals average cost MC = AC = 30, and it faces market demand given by inverse demand function P = 120 0:5Q. Suppose at the moment A produces quantity q = 120 units at price p = ..
The question is explain about non-market housing and direct provision. The most non-market housing is supplied by direct provision rather than cash handouts without strings.
What is the marginal product of the second worker and what is the marginal revenue product of the fourth worker?
suppose that velocity is constant at 9 but the nominal money supply increases from 1.5 to 1.8 trillion. what must
The following graph shows the daily market for wine when the tax on sellers set at $0 per bottle. Suppose the government institutes a tax of $5.80 per bottle, to be paid by the seller.
You're the manager of monopoly that sells the product to two groups of consumers in different parts of country. Group 1's elasticity of demand is -2, while group 2's is -6. your marginal cost of producing the product is $10.
Assume The Big Enchilada Restaraunt has been offered a 1 year binding lease agreement for $5200/mth on an attractive site. Before the lease is signed, what is the incremental cost per month?
Does this production function display increasing, constant or decreasing returns to scale and find the corresponding minimum cost function assuming that w 1 and w 2 are given.
Discuss the US bilateral trade with a country from Africa or South America for the period 1991 to 2010 (you may use a different range of 20 years like 1995-2014).
Which is not a factor of production? Which is not one of the five fundamental questions that an economy must deal with?
Is it possible for many firms to sell exactly the same product, and still be in monopolistic competition? Be precise and describe in detail.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd