What will be the market price per unit of natural gas

Assignment Help Business Economics
Reference no: EM131805640

Suppose two natural gas producers are competing in quantity over the market demand given by the inverse demand function P (Q) = 120 - Q/2, where Q = Q_1 + Q_2. The producers' cost functions are TC (Q_1) = 6 + Q_1^2 and TC (Q_2) = 4 + 2Q_2.

(a) What output levels, Q_1 and Q_2, will the two firms produce?

(b) What will be the market price per unit of natural gas?

(c) What is the marginal cost of the last unit produced by producer 1? By producer 2?

(d) How much profit does each producer make?

(e) How much deadweight loss does the Cournot duopoly generate?

Reference no: EM131805640

Questions Cloud

What are the measurement units of the standard deviation : What does the standard deviation tell you about the relationship between individual data values and the average?
The accountant for mystic medical services consulting firm : The accountant for Mystic Medical services consulting firm, mistakenly omitted adjusting entries for
How much profit does each producer make : What will be the market price per unit of natural gas? (c) What is the marginal cost of the last unit produced by producer 1? By producer 2?
What are the measurement units of the variance : Which is the more easily interpreted variability measure, the standard deviation or the variance? Why?
What will be the market price per unit of natural gas : (a) What output levels, Q_1 and Q_2, will the two firms produce? (b) What will be the market price per unit of natural gas?
What was the cost of completing a unit during current period : What was the cost of completing a unit during the current period
Uncovered interest parity condition holds : Suppose the uncovered interest parity condition holds, and that the domestic interest rate is lower than the foreign interest rate.
Identify the key estimates and assumptions used by your firm : HA 3011 Advanced Financial Accounting Assignment. Identify the key estimates and assumptions used by your firm in conducting the impairment testing
Comparative advantage in producing food and televisions : Suppose that the United States and Canada each produce only two products, televisions and food. The United States can produce 100 televisions a day

Reviews

Write a Review

Business Economics Questions & Answers

  Compare the total costs in parts a and b

Compare the total costs in parts a and b. If the government does not know the cost of pollution reduction for each firm, is there still some way to reduce pollution to 50 tonnes at the total cost calculated in part a?

  Basis of net present worth using an interest rate

Machine A costs $9000 to purchase and $5000 per year to operate. It lasts for 6 years, and has no salvage value at the end of its life. Machine B costs $16,000 to purchase and $4000 per year to operate. It lasts for 9 years and has a salvage value of..

  How much is the equivalent present value of these payments

You purchased an immediate annuity which pays you $3,000 each year from next year for 15 years. Assuming interest rate is 5%, how much is the equivalent present value of these payments? The future value of $1,000 saved for 20 years at 5% interest is:

  Inflation can hinder economic activity

Inflation can hinder economic activity because raising prices tends to reduce spending on certain products and services. Can you give an example of this?

  Use the traditional method for surgical operations

You are the manager of the surgery department at a hospital which serves mostly Medicare patients. The hospital performs 1,000 surgical operations per year using the traditional method. Compute the total revenue, the total cost, and the profit at the..

  Discuss the pros and cons of central banks setting policy

Discuss the pros and cons of central banks setting policy based on rules as opposed to setting policy based upon the discretion of policy makers at each policy meeting.

  Q george and john stranded on an island use clamshells for

q. george and john stranded on an island use clamshells for money. last year george caught 300 fish and 5 wild boars.

  Goods market and the money market equilibrium

Assuming that the price level is P = 1, find the equilibrium real output, interest rate, consumption, and investment. Organize your results in the following table. (Hint: You should solve both the goods market and the money market equilibrium.)

  Determine whether it is better to rent or own

tax consequences of owning, and determine whether it is better to rent or own. This is an example of the hidden-cost fallacy.

  What is the percent change in the equilibrium wage

In the city of Growville, the equilibrium employment is 100,000 workers, and the equilibrium wage is $80 per day. The elasticity of demand for labor is 1.0 (in absolute value) and the elasticity of supply of labor is 4.0. The employment multiplier is..

  Qpart 1in 2011 company xyz had sales of 345620million net

q.part 1in 2011 company xyz had sales of 345620million net working profit subsequent to taxes of 10250 million and

  Assume calvin can make a fractional investment

Calvin is risk averse with V(W) = √W. Assume Calvin has initial wealth W = 10 and can make an investment that pays double or nothing with a probability of success of 60%. How much will Calvin choose to invest? Assume Calvin can make a fractional inve..

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