Two firms are competing for output

Assignment Help Business Economics
Reference no: EM13796436

Two firms are competing for output. Leader firm market demand is P=1200-Q and other firm demand is Q2=400-0.5Q1. Marginal cost for both is $200. How much is output for firm 1 and 2?

Reference no: EM13796436

Questions Cloud

Expected return from a new capital investment project : What would be the minimum expected return from a new capital investment project to satisfy the suppliers of the capital? Assume the applicable tax rate is 40%, interest on debt is 7%, flotation cost per share of preferred stock is $0.75, and flotatio..
Stock market-what is the cost of equity : Les argues that the 10 year note is a better risk free rate at 2%. He also argues that the stock market is too high and the expected return is really only 5%. Assume that he is correct. The company has a beta of 1.6. What is the cost of equity?
Risk-free rate-what is the cost of equity : The risk-free rate on 30 year U.S. Treasury bonds is 3.25% and the expected rate of return on the overall stock market is 12%. The company has a beta of 1.6. What is the cost of equity?
Calculate the cost of the companys retained earnings : The corporate treasurer of Rollinsford Company expects the company to grow at 3% in the future, and debt securities at 4% interest (tax rate = 35%) to be a cheaper option to finance the growth. The current market price per share of its common stock i..
Two firms are competing for output : Two firms are competing for output. Leader firm market demand is P=1200-Q and other firm demand is Q2=400-0.5Q1. Marginal cost for both is $200. How much is output for firm 1 and 2?
Contingency theories try to predict leadership efficiency : Contingency theories try to predict leadership efficiency. Common sense would tell us that not all traits or behaviors of leaders are positively related to effectiveness all of the time. Instead, whether a leader behavior is effective will depend on ..
Narrowly diverse culture is always desirable in organization : A narrowly diverse culture is always desirable in organizations. The chain of command outlines the planned configuration of positions, job duties, and the lines of authority among different parts of the organization. Task-oriented behavior involves c..
Taxable deductions and paying less taxes : Knowing that there are different methods to compute the depreciation of an asset, which method do you think is best for taxable deductions and paying less taxes and why? Which you prefer to choose?
Market orientation explain entry into that market : Use Porter’s five forces model to analyze the competitive environment of a country of your choice (pick a product category that you are familiar with). How does a market orientation explain entry into that market? A resource-based view? Why are both ..

Reviews

Write a Review

Business Economics Questions & Answers

  Calculate the optimal output produced by each firm

Calculate how large A would have to be so that in the new LRCE, the number of firms is twice what it was in the initial equilibrium.

  Write your individual answers to the questions

Question: What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time?

  Financial institutions

Describe each of the following financial institutions. If it is a financial intermediary, describe what type of liabilities it issues and who holds these liabilities, as well as what kinds of assets it holds and who issued these assets. If it is not ..

  Policy has typically been driven by political ideology

Government policy has typically been driven by political ideology. Radical writers argue that the MNE is an instrument of imperialist domination, but the free market view argues that international production should be distributed among countries acco..

  What is the opportunity cost of producing a clarinet

Suppose in Belgium the opportunity cost of producing a trombone is 8 clarinets. In Denmark the opportunity cost of producing a trombone is 6 clarinets. What is the opportunity cost of producing a clarinet for Denmark?

  Explain how can tax cuts help revive the economy

Aggregate Demand-some-not all--of these and/or other terms from this week. Explain how can tax cuts help revive the economy.

  What is the probability that a cell phone is both dull

Also, 40% of cell phones are both Flashy and owned by Hipsters. Finally, if a cell phone is owned by a Granny, the probability of it being Dull is .98. What is the probability that a cell phone is both Dull and owned by a Hipster.

  Elucidate what is the fair price of this bond

Suppose that two UK government bonds have same face values with £100. One has an outstanding maturity of 2.5 years. Its coupon rate is 9.75% and coupons are paid semi-annually.

  Citizens bank in nominal terms

Susie's boss offers her $100 to come to work instead. In considering what to do, which of the above would be considered a sunk cost.

  Quantity of labor he demands if the wage increases

Suppose that Taher's pizza business operates under competitive conditions and that his short-run production function is q=20?E. What happens to the quantity of labor he demands if the wage increases to w1= $12?

  The marketplace equilibrium price

The marketplace equilibrium price is $45 every bag. The price at a is $85 every bag. The price at c is $5 every bag. The price at f is $59 every bag.

  The marginal product of labor is constant

Assuming that the marginal product of labor is constant between 10 also 11 workers also the marginal product of capital is constant between 3 also 4 machines.

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