Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Two firms produce differentiated products and set prices to maximize their individual profits. Demand functions for the firms are given by
Q1 =64-4P1 +2P2
Q2 =50-5P2 +P1
Where P1, P2, Q1, Q2, refer to prices and outputs of firms 1 and 2 respectively. Firm 1's marginal cost is $5 while firm 2's marginal cost is $4. Each firm has a fixed cost of $50.
a) Assuming that the two firms decide on prices independently and simultaneously, calculate the best response function of each firm in terms of prices.
b) Calculate the resulting equilibrium price quantity combination for each firm.
c) Illustrate the answer with a graph.
d) Calculate optimal profits of each firm.
1. suppose there are two consumers a and b.the utility functions of each consumer are given byuaxy xyubxy
Firms in a competitive market are unable to dictate the price for which they sell an item for and over a long period of time will be unable to make an economic profit.
What differentiates the company's products from its competitor's in terms of utility? What differentiates the company's products from its competitor's in terms of packaging, size, and availability?
The owner-manager of Good Guys Enterprises obtains ulility from income (profit) and from having the firm behave in a socially conscious manner, such as making charitable contributions or civic expenditures.
Almost all of the fossil fuels that we are now currently using were formed during the Carboniferous period. (b) There seems to be a strong correlation between increases in the availability of food energy per person and increases in human populati..
Explain a political, economic, or social interaction of decision makers that you have heard about in words. The condition should involve decision makers, available actions
How might a Wal-Mart representative respond to the negative criticism that might arise as the result of sighting the new facility in a community ranging from traffic congestion to anti-union sentiment to unfair competition.
Describe the cutthroat competitors reasons for not increasing or decreasing his price, thereby accounting for the kink in his demand curve.
What is the marginal revenue for hiring a worker for the 1 st hour? For the 2 nd hour and determine how many hours Eva should extend her bakery's hours of operations.
john barks owns barks computer screens inc. and wants to identify the supply and demand for screens in his market. the
Draw en Edgeworth box and illustrate. Initial endowement allocation, an indifferens curve for each consumer and the contract curve.
overviewyou have the task of developing an e-commerce business plan for the client described in the case study below.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd