The total quantity produced in the market

Assignment Help Business Economics
Reference no: EM13892068

Consider the following market game: there are two firms in an industry firm1 and firm 2. Firm 1 first chooses the quantity of its production and then firm 2 observing q1 will choose q2.

Here are the cost functions for these firms: C1(q1) = 10q1 + 100

C2(q2) = 5q2 + 150

Demand curve is given by P=1000-Q where Q is the total quantity produced in the market. What would be the output of each of these firms? Which firm will produce more? Why?

Reference no: EM13892068

Questions Cloud

Explain what is meant by price floors and price ceilings : Explain what is meant by price floors and price ceilings. What are the consequences of a) a price floor that is higher than the market equilibrium price; b) a price ceiling that is lower than the market equilibrium price. Demonstrate your answers gra..
Movement along demand curve and shift in demand curve : How did Adam Smith justify the new economic system which was later to be called capitalism? Explain the difference between a movement along a demand curve and a shift in the demand curve. Briefly explain and graphically present four factors that can ..
Using production possibility frontiers : Using production possibility frontiers, illustrate the effects of a) an increase in total resources; b) an improvement in the technology for producing one of the goods under consideration; c) a simultaneous improvement in the technologies for produci..
What happens to t as labor increases : Consider an economy where, consumer’s utility function is given as U(C,L)=C-(1/2)L2 . where C is consumption and L is labor. The production technology is Y=(1.6)L-(1/2)L2. The turnover cost per labor is (0.36)/(w/p). What happens to t as real wage in..
The total quantity produced in the market : Consider the following market game: there are two firms in an industry firm1 and firm 2. Firm 1 first chooses the quantity of its production and then firm 2 observing q1 will choose q2. Demand curve is given by P=1000-Q where Q is the total quantity ..
Consider the market game-an incumbent firm-called firm : Consider the following market game: An incumbent firm, called firm 3, is already in an industry. Two potential entrants, called firms 1 and 2, can each enter the industry by paying the entry cost of 10. First, firm 1 decides whether to enter or not.
Analysis period for the four mutually exclusive alternatives : A cost analysis is to be made to determine what, if anything, should be done in a situation offering three "do-something" and one "do-nothing" alternatives. Use a 10-year analysis period for the four mutually exclusive alternatives. At the end of Yea..
Social security were considered part of general budget : If social Security were considered part of the general budget then?
Instant access to markets-financial elements : You are hired by a financial company in New Zealand and you have instant access to markets. You would like to lock in a 3-month borrowing cost in NZ$ for your client. You consider a NZ$ 1x4 FRA. But you find that it is overpriced as the market is thi..

Reviews

Write a Review

 

Business Economics Questions & Answers

  Aggregate expenditure line and the aggregate demand curve

How do events, such as the World Trade Center and Pentagon attacks describe in the case study “The Ripple Effects of 9/11” affect the aggregate expenditure line and the aggregate demand curve?

  A few years ago, a construction manager earning

A few years ago, a construction manager earning $70,000/ year working for a regional home builder decided to open his own home building company.

  What are the goals-objectives of judges

What are the goals/objectives of judges (what do they maximize)? Filing fees: for the marginal case, the one that may or may not be filed the filing cost should equalt what?

  Determine demand is elastic inelastic or unit elastic

Determine whether demand is elastic, inelastic, or unit elastic with respect to its own price and whether Good Y is a substitute or a complement with respect to Good X.

  Illustrate the effects of a tariff on imports

Assume that the nation is not large enough to affect the world price. Illustrate the effects of a tariff on imports.

  Advantage of the theory of tax capitalization

In order to host the Winter Olympic Games the city of Vancouver incurred a large debt, which will have to be repaid over time. Reflecting on this fact, one Vancouver resident complained, “The average guy is going to see his taxes increase” [Austen, 2..

  Unit on good creates deadweight loss

Suppose a tax of $.10 per unit on a good creates a deadweight loss of $100. If the tax is increased to $0.30 per unit, the deadweight loss from the new tax would be:

  Function of share and demand elasticities

Consider the model of Gaynor & Town (2012) in which hospitals choose quality with a fixed price. Recall that the model begins with a demand specification, qj = sj (zj , z\j ) × D(¯p, zj , z\j ), where the hospital’s market share sj is a function of i..

  What is rent seeking behavior

What is rent seeking behavior? How does it explain why government has grown in recent years and how it explain why it is difficult to change tax or spending policies in the United States?

  Calculate the price elasticity of demand of gasoline

Explain how you would calculate the price elasticity of demand of gasoline? In general terms, explain how consumer and producer surplus will change as a result of this price increase?

  The optimal number of traffic deaths

The optimal number of traffic deaths in the United States is zero." "Any pollution is too much pollution." "We cannot pull U.S. troops out of Afghanistan. We have committed so much already."

  An accident occurred and an individual lose a leg

An accident occurred and an individual lose a leg. Show diagrammatically the utility functions before and after the accident. Show that if you were the Utilitarian, you would give more income to the individual after the accident, but that even after ..

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd