Appropriate horizontal- and vertical-axis intercepts

Assignment Help Business Economics
Reference no: EM13983911

The market for lemonade in a town consists of two lemonade stands (i.e., firms), 1 and 2. An agricultural economist estimates the following demand for lemonade in this town: Q = 300 - P, where Q is the market quantity and P is the market price. Total costs of the two firms are indicated below: TC1 = 60Q1 (such that marginal cost is constant at 60) TC2 = 40Q2 (such that marginal cost is constant at 40) Acting as Cournot competitors, find and graph the reaction functions of each firm (indicating appropriate horizontal- and vertical-axis intercepts). Determine the Cournot equilibrium output of each producer, as well as the profit of each producer.

Reference no: EM13983911

Questions Cloud

Political philosophies associated with income inequalities : Discuss tax systems and political philosophies associated with income inequalities. List and describe the relationship between the two tax principles and three tax systems discussed in this course. Include comments regarding the effects of tax on soc..
Inverse monthly market demand for tattoos : In the town of Inksville, Tats for Tots (i.e., TFT) is the only tattoo parlor dedicated to the under-18 age group. Being a monopolist, TFT hires you to advise it on the best price and quantity of tattoos to sell each month. Determine the values of P ..
How much will this firm want to sell to each consumer type : The Errata Book Company is a firm that sells its book to two types of consumers, type 1 and type 2. The marginal revenue Errata gets from type 1 consumers is: MR1 = 20 - 2Q1, and the marginal revenue Errata gets from type 2 consumers is: MR2 = 15 - 3..
The level of aggregate real income decreases : Monetary Policy Each of the following events will have one of the effects given below. Identify the correct effect by letter. Some answers may be used more than once and some may never be used. The level of aggregate real income (real GDP) decreases...
Appropriate horizontal- and vertical-axis intercepts : The market for lemonade in a town consists of two lemonade stands (i.e., firms), 1 and 2. An agricultural economist estimates the following demand for lemonade in this town: Q = 300 - P, where Q is the market quantity and P is the market price. find ..
Policies redistributes income across generations : Explain how each of the following policies redistributes income across generations. Is the redistribution from young to old, or from old to young? a. an increase in the budget deficit b. more generous subsidies for education loans c. greater investme..
Find optimal number of bottles to package together for sale : Suppose a typical consumer's inverse demand function for bottled water at a resort area where one firm owns all the rights to a local spring is given by P = 15 - 3Q. The marginal cost for gathering and bottling the water is $3 per gallon. Find the op..
What is meant by the concept of substitutes for leadership : Define power from an organizational behavior perspective. What is the difference between power and influence? What are the six forms of position power and the four forms of personal power? Briefly describe each form. What is leadership and how does i..
How does affecting the nominal federal funds interest rate : The federal reserve has power to adjust the nominal federal funds rate of interest. How do they do this? How is this different from quantitative easing? How does affecting the nominal federal funds interest rate address recessionary gaps in the econo..

Reviews

Write a Review

Business Economics Questions & Answers

  Monopolist produces at constant marginal cost

A monopolist produces at constant marginal cost c = 1 It sells the product in the domestic market, where demand is Qd = 5 ? Pd, and some foreign markets with total demand Qf = 2 ? Pf Find the prices that will set in each market and the proportion of ..

  The city library in amritsar has several private study

The City library in Amritsar has several private study rooms which are freely available to clients.

  Decrease equity capital in the equity multiplier

If you want to increase ROE for a bank, but ROA is fixed, what could be done to do this? Would you increase the assets in the equity multiplier or decrease equity capital in the equity multiplier?

  Is it likely that they will choose payoff-maximizing action

Which set of actions maximizes the total payoff of Nikita and Margaret? Is it likely that they will choose the payoff-maximizing actions without some communication? Why or why not?

  Suppose that a big mac costs 500 in new york and sf30 in

suppose that a big mac costs 5.00 in new york and sf30 in geneva. suppose further that the price of 1sf on that day is

  Actors other than marginal revenue product probably

The president of the United States receives an annual salary of $400,000. Derek Jeter, shortstop for the New York Yankees, receives an annual salary of $23.2 million. If the president of the United States actually contributes more to society than Der..

  Corporation sells bonds to raise money

When a government or corporation sells bonds to raise money, it can do so in one of two ways. It can target a certain amount to raise or it can target a certain amount to pay back at the end of the bond (this is simplified for the purpose of the prob..

  Strategies for reducing adverse selection-insurance market

Identify some ways that nursing homes can signal high quality to consumers. Which of these signals are most apt to be reliable? What are some strategies for reducing adverse selection in insurance markets? What sorts of problems do these solutions ca..

  Allocation under allocation get resolved

Elucidate how might this allocation under allocation get resolved via the means suggested by the coase theorem.

  Qwhen money decreases in value because of inflation people

q.when money decreases in value because of inflation people tend to place less trust in it as a method of storing value

  Elucidate how trash bag is strongest such bag on the market

Explain how convinced are you that the new 30-gallon trash bag is the strongest such bag on the market.

  Calculate elasticity in the following cases

a) Assume that a business firm sells a product at the price of Rs 500. The firm has decided to reduce the price of the product to Rs 400. Consequently, the demand for the product is raised from 20,000 units to 25,000 units. Calculate the price elasti..

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