User Account

All Pages

Minimize the total costs of production

Assignment Help Macroeconomics
Reference no: EM131061792

Can someone please help me and answer the following problem detailed?

A two-firm cartel producing industrial diamonds  faces the following demand function:

Q = 120 - 10P or Q = 12 - 0.1P

The MC and the ATC functions of each firm are, respectively,

MC1 = 4 + 0.2Q1 and ATC1 = 4 + 0.1Q1

MC2 = 2 + 0.2Q2 and ATC2 = 2 + 0.1Q2

Draw a figure showing the best level of output and price for the cartel, and the output of each firm to minimize the total costs of production for the cartel, and calculate the profits per unit and in total for each firm.

Reference no: EM131061792

Questions Cloud

Write a program to sort students'' gpa in descending order : write a program to sort students' GPA in descending order.
Identify one substantive audit procedure for each account : Required: Identify one substantive audit procedure for each of the account balances above that will provide sufficient appropriate audit evidence regarding the accuracy of that account balance
Allocation of resource in the economy : Consider a small open economy that produces steel and cloth under Heckschel Ohlin condition, using 200 units of capital and 135 units of labor.
What are some of issues that can arise form data redundancy : What are some of the issues that can arise form data redundancy?
Minimize the total costs of production : Draw a figure showing the best level of output and price for the cartel, and the output of each firm to minimize the total costs of production for the cartel, and calculate the profits per unit and in total for each firm.
The vice-president for human resources in learning : 1. Sandra Pilsden, the Vice-President for Human Resources in Learning, Inc. was concerned about a recent memo she had recently received from the CEO's office regarding the possibility of outsourcing the payroll function to Salary Experts, a growin..
Describe the goals and objectives of the company : Select an existing business or create one of your own. Describe the business in detail. Describe the product or service. Describe the goals and objectives of the company. Finally, elaborate on the company's strategic plan based on Porter's Three G..
Marketprice in the case of monopoly : Using the results in (a) and (b) above, and the market demand curve, illustrate the marketprice in the case of monopoly, duopoly, and perfect competition. Note: to derive thecompetitive solution assume identical firms i.e. AC = MC.
Provide a general ranking of countries and avoid journalism : Provide a general ranking of countries and avoid journalism and overly lengthy surveys of each nation. Be explicit about the assumptions you make and how they lead to your ranking.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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