Two firms have identical cost curves

Assignment Help Business Economics

Reference no: EM131385462

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: EM131385462

Questions Cloud

Definition of the output demand curve : Provide a written definition of the output supply curve, Ys . Graphically derive the output supply curve, Ys , for the real intertemporal model with investment (the model from Lecture Note 9). Be sure to show all graphs and all work. Provide a writte..

About the short run and the long run : Which of the following statements is true about the short run and the long run? When marginal product is rising we know that

Three units of wood are required to produce one boat : To produce a boat, you need wood as an intermediate good. If this country imports both boats and wood, a 10% tariff rate can be imposed on boat imports, and a 5% tariff rate can be imposed on wood imports. The price of a boat is $1000 before the tari..

Regardless of production level : 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..

Two firms have identical cost curves : 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..

Representative firm current demand for labor : Suppose that we have a standard real intertemporal model with investment. The country experiences a natural disaster and the current capital stock K is greatly reduced. In other words, suppose that the representative firm begins the current period wi..

Consumers surplus at the indicated unit price : Calculate the consumers surplus at the indicated unit price (a) for the the demand equation.

Exchange rate between the peso and dollar : If the exchange rate between the Mexican Peso and the U.S.$ is 3 Pesos=1$. If this rate changed to 2 Pesos=1$. Are the Mexican exports cheaper or more expensive due to this change? What can the Mexican policy makers do to return to the initial exchan..

About issues related to exchange rates : Here, in this forum, I expect you to talk about issues related to exchange rates - their impact on national economies when they change, their different equilibrium concepts (PPP and IP), how governments manage them (fixed or flexible or in-between).

User Account

All Pages