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!
The Hull Petroleum Company and Inverted V are retail gasoline franchises that compete in a local market to sell gasoline to consumers. Hull and Inverted V are located across the street from each other and can observe the prices posted on each other’s marquees. Demand for gasoline in this market is Q = 50 – 10P, and both franchises obtain gasoline from their supplier at $1.25 per gallon. On the day that both franchises opened for businesses, each owner was observed changing the price of gasoline advertised on its marquee more than 10 times; the owner of Hull lowered its price to slightly undercut Inverted V’s price, and the owner of Inverted V lowered its advertised price to beat Hull’s price. Since then, prices appear to have stabilized.
(a) What oligopoly model can be used to explain this situation?
(b) Suppose the market has reached the equilibrium, how many gallons of gasoline are sold in the market, and at what price?
(c) Suppose Hull decides to open a convenient store next to its gasoline station, do you expect the same answer in (b)? What type of product differentiation is this?
(d) Suppose Inverted V had service attendants available to fill consumer’s tanks but Hall was only a self-service station, would your answer in (a) differ? What type of product differentiation is this?
An economy is in long-run macroeconomic equilibrium with an unemployment rate of 5% when the government passes a law requiring the central bank to use monetary policy to lower the unemployment rate to 3% and keep it there. How could the central bank ..
q1. an individual wants to start a business at which he expects to make 50000. getting a license for the business costs
Consider the costs for the following lobster productin firm in a perfectly competitive market: TC = 80 +10q+q2 & MC= 10 + 2q. What is the supply function for the firm? Write the supply function as a function of P (i.e. solve for Qs) Currently there a..
Assume that the market for wheat is perfectly competitive, with demand curve P = 5000 ? 0.01QD and a supply curve P = 1+0.1QS. Each identical wheat producer has a total cost curve given by T C = 1+Q+Q2 , which results in marginal cost of MC = 1 + 2Q...
The law of supply illustrates that
Aerotron Electronics is considering the purchase of a water filtration system to assist in circuit board manufacturing. The system costs $40,000. What is the internal rate of return of this investment? What is the decision rule for judging the attrac..
what would the benefits of each action be (besides emissions reduction)? what would the costs of each action be? How would you decide what was the best level of emission reduction?
What is the practical significance of income elasticity coefficients? Explain the significance using as examples an income elasticity of 3.0 for automobiles and an income elasticity of 0.20 for home-cooked meals.
Explain which industries have substantially reduced fixed cost commitments. Reduction in costs has substantially impaired the ability.
The maximum price that a few of the consumers are willing to pay is $0.20 per pound of cheese, and the price floor is set at $0.17 per pound. With the price floor at $0.17 per pound of cheese, consumers buy 211 billion pounds of cheese. How much cons..
Which of the following is a valid reason as to why prices will not always adjust to changes in spending?
elucidate what will be the effect on the world price of wool. How does the marginal revenue to Australia from an extra unit of wool relate to the price of wool.
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