User Account

All Pages

What is equilibrium quantities

Assignment Help Business Economics
Reference no: EM131775917

The Cournot model with two companies that produce homogenous good, Company A and Company B. The market demand is given as P = 40 - Q, P = price, Q = total (aggregate) quantity. The MC (marginal Cost) of Company A equals to $2 and constant. The MC (marginal cost) of Company B equals to $4 and constant. Companies have no fixed cost.

a) What is equilibrium quantities.

b) What is equilibrium profits.

Reference no: EM131775917

Questions Cloud

Cfo is gathering information to forecast the investment need : If the CFO estimates that he can receive an annual yield of 9% on his portfolio, what lump sum amount must he invest today to create the six year payout
Discuss the assumptions implicit in the shortcut : Sometimes engineers use a shortcut method for determining the average process performance. In this shortcut, the average variable value is used.
Create a shortage of gasoline : A price ceiling would create a shortage of gasoline, as you correctly explained. If prices were free to adjust, they would increase, you are right.
Resources from an allocative perspective : How does the growth in the area of providing clean water reflect an effective use of resources from an allocative perspective?
What is equilibrium quantities : The MC (marginal Cost) of Company A equals to $2 and constant. The MC (marginal cost) of Company B equals to $4 and constant.
Many companies have implemented health cost savings ideas : Many companies have implemented health cost savings ideas such as dropping employee spouse coverage adding surcharges for persons who refuse to accept wellness
Determining the blending process : A blending process, shown in Figure Q2.7, mixes component A into a stream. The objective is to maximize the amount of A in the stream without exceeding.
Journalize the entry to record the payroll tax expense : Journalize the entry to record the payroll tax expense incurred for the week of November 18
How many gears should be produced in each run : How many gears should be produced in each run and at what minimum cost? In addition, what is the maximum inventory level?

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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