What is the output of each firm

Assignment Help Business Economics
Reference no: EM131007744

Two firms, the Alliance Company and the Bangor Corporation, produce vision systems. The demand curve for vision systems is P = 200,000 - 6(Q1+ Q2) where P is the price (in dollars) of a vision system, Q1 is the number of vision systems produced and sold per month by Alliance, and Q2 is the number of vision systems produced and sold per month by Bangor. Alliance’s total cost (in dollars) is TC1= 8,000Q1 Bangor’s total cost (in dollars) is TC2= 12,000Q2

a. If managers at these two firms set their own output levels to maximize profit, assuming that managers at the other firm hold constant their output, what is the equilibrium price?

b. What is the output of each firm?

c. How much profit do managers at each firm earn?

Reference no: EM131007744

Questions Cloud

What is the value of information : What is the value of information? How does it affect the viability and competitiveness of nations? Give one specific example of a nation that has accomplished this and how it was achieved
Executive working for an emerging automaker : If you were an executive working for an emerging automaker from china or india, assuming your firm only has the ability to enter on Latin American country for the time being, which country would you recommend Brazil or mexico?
Describe racial profiling and racially biased policing : Describe racial profiling and racially biased policing. Explain why these phenomena have become significant issues in policing. What steps have been taken to eliminate racial bias among police?
Compared to perfectly competitive firms : Compared to perfectly competitive firms, oligopolies are:
What is the output of each firm : Two firms, the Alliance Company and the Bangor Corporation, produce vision systems. The demand curve for vision systems is P = 200,000 - 6(Q1+ Q2) where P is the price (in dollars) of a vision system, Q1 is the number of vision systems produced and s..
Worth of new construction bonds : To pay off $60,000,000 worth of new construction bonds when they come due in 19 years, a water municipality must deposit money into a sinking fund. Payments to the fund will be made quarterly, starting 3 months from now. If the interest rate for the ..
Describe any security requirements : In your initial post, explain these and provide links to websites that provide information on them. Also describe any security requirements that are relevant and should be addressed in the project design
Describe the company or organization and its mission : Type a brief (300 words) thorough and well - organized project proposal that clearly describes the company or organization and its mission in which the student will be assuming the role of the client
Describe cognitive concept of memory in mental processing : Describe the cognitive concept of perception in mental processing as it relates to your selected device or Web site. Describe the cognitive concept of attention in mental processing as it relates to your selected device or Web site

Reviews

Write a Review

 

Business Economics Questions & Answers

  Impact of opening trade

What is the impact of opening trade on the real rental on capital.

  The labor market portray graphically the outcomes

PART TWO: THE LABOR MARKET Portray graphically the outcomes of before and after the imposition of minimum wage in the following TWO hiring scenarios of Kellogg’s firm. Label the wage paid by Firm B before minimum wage imposition as WB1 and wage paid ..

  Would the marginal rate of substitution

Given the utility function U(F,C) = √(FC), and this budget constraint: 100,000 = 4F+40C, Suppose that a person is consuming more F and less C than the utility maximizing bundle. Would the marginal rate of substitution of F for C be greater or less th..

  When an increase in aggregate demand exceeds

When an increase in aggregate demand exceeds the increase in aggregate supply,

  What is the expected real interest rate for this loan

The terms of the loan are not renegotiated, so the borrower has a guaranteed nominal interest rate of 10%. What is the expected real interest rate for this loan?

  Applying the concepts of diminishing marginal utility

The government wants to make Medicare benefits available to more people, but to achieve this goal, it needs to make cuts in the existing Medicare budget. The two areas where they are considering cuts are non-essential elective surgery and 6-12 month ..

  Cost leadership also focus strategy of hsbc holdings

Illustrate what is the competitive advantage including low cost strategy, cost leadership also focus strategy of HSBC Holdings.

  Firm in this inudustry decides to increase its price

In a perfectly competitive industry, the price of good A is $2. If a firm in this inudustry decides to increase its price to $2.50, it will:

  Suppose the growth rate of the firms profit

Suppose the growth rate of the firm's profit is 7 percent, the interest rate is 9 percent, and the current profits of the firm are $90 million. The firm does NOT pay out dividends. What is the value of the firm? $4,905 million $613 million $405 milli..

  Impact of the shrinking world

What is the impact of the shrinking world on whether small to medium sized businesses should engage in international trade.

  Effect on the level of checkable deposits

Illustrate what will be the effect on the level of checkable deposits.

  What are issues that might affect that total amount

If a consumer decides to spend $600 more in the economy, how much of an impact will that have on the GDP for the country? Why would that effect not be correct, what are issues that might affect that total amount?

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