Find themselves at the same wealth maximizing output

Assignment Help Business Economics

Reference no: EM131385586

Two firms have identical cost curves, but firm A is a price taker while firm B is a price searcher. Is it possible that the two firms could find themselves at the same wealth maximizing output? (Assume that firm B is NOT able to engage in any form of price discrimination.) If so, explain the specific circumstances under which this would occur; if not, prove it.

Reference no: EM131385586

Questions Cloud

Criminal justice policy will increase social efficiency : Economists recommend that crime policy have the goal of minimizing the "costs of crime", which include the social costs of the crimes themselves and the social cost of enforcing the criminal law. What is the general rule for determining whether a par..

Find the best price to maximize the revenue : 6000 bottles of water are sold when the price is $3 per bottle. when the prices is $4 per bottle, 5500 are sold. find the linear price equation where the price is p(x) and x represents bottles of water. set up table of (x,y) values showing your work...

Considering new bottle-capping machine : A company is considering a new bottle-capping machine. The initial cost of the machine is 300,000 SR and it has a 20 year life. Yearly maintenance cost is estimated to be 15000 per year. The machine required a major overhaul costing 50000 at the end ..

Short and long-run marginal and average cost curves : How will a tax of $5 per unit produced affect the short- and long-run marginal and average cost curves? What about an annual license fee of $500 per year regardless of production level? (Make sure you address all possible average costs—e.g., fixed, v..

Find themselves at the same wealth maximizing output : Two firms have identical cost curves, but firm A is a price taker while firm B is a price searcher. Is it possible that the two firms could find themselves at the same wealth maximizing output?

Macroeconomic event affected the performance of the economy : What large macroeconomic event affected the performance of the economy in the past 10 years? Explain and analyze the event using the model of aggregate demand and aggregate supply (AD-AS model).

In diagram of the equilibrium model of bank reserves : In a diagram of the equilibrium model of bank reserves, identify the discount rate, the interest rate on reserves and the federal funds rate. Make sure you label everything clearly.

Did you notice actual documentary footage being used : Movie: Citizen Kane In terms of realism, "Citizen Kane" heavily uses images that masquerade as documentary footage, when in fact they're just constructed to look like documentary. Did you notice actual documentary footage being used

Assess aspects of the oligopoly market structure : Over the last several years, the airline industry has lost billions of dollars and individual firms (with the exception of a few discount carriers) have been unable to make a profit. Assess aspects of the oligopoly market structure that may be releva..

User Account

All Pages