16. Calculate the profits for firm 1 for the situation described in question 15 before, where the inverse demand function was P(q1, q2)=131-(1/5)(q1+q2) and marginal costs for both firms were 50. Determine the equilibrium profits for firm 1. 3645.00 (answer to 2 decimal places)
Q: The White Swan Talc Company paid $120,000 for mining equipment for a small talc mine. The mining eng...
A: Under the SYD technique, the depreciation rate for every year is determined as the number of years i...
Q: wages = 700 goverment spending = 2,300 investment = 2,300 rent = 200 consuption = 7,400 net exports ...
A: GDP =w + i + C+ I + G + (X - M) = 700 + 200 + 7400 + 2300 + 2300 + 400 = 13,300
Q: Consider the following payoff matrix, where the first entry in each cell is the row-player's payoff....
A: Introduction In payoff matrix each player choose best strategy so that he can get maximum payoff. It...
Q: Question 21.21. Which would be an implicit cost for a firm? The cost of worker wages and salaries fo...
A: We know that Implicit cost is the cost that represents the opportunity cost of consuming resources w...
Q: What is the function and use of the supply in the market? What are the causes that are responsible f...
A: Supply shows the functional relationship between supply and the factors that affects willingness and...
Q: 26,000 HEOM in 3% co.yearly 40,000
A: Introduction We have given a cash flow. Average value of 26,000 = 26,000/6 = 4,333.33 Present value ...
Q: . Country A has a tariff on imported TVs. But, the new government of Country A decided to charge onl...
A: We find that country A has made a trade union with country B.
Q: 6. Calculate the profits for firm 1 for the situation described in question 15 before, where the inv...
A: Given : P = 131 - q1 +q25 MC1= MC2= 50 In case of cournot equilibrium firm choses simultaneous outp...
Q: 7. The following table shows the demand for water and cost conditions for the New South Springdale W...
A: a) quantity in gallons price per gallon ($) total revenue($) marginal revenue($) marginal costs($...
Q: Googol and Visagetext are two social media platforms. When Googol was launched, many reviewers claim...
A: Competition to dominates the market Even if the two market leaders have bene able to operate in the ...
Q: A central bank creates money by... O a. Selling government T-bills to the commercial banks. O b. Inc...
A: The Central Bank can affect the money supply by buying or selling government securities and bonds th...
Q: Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $20 and the v...
A: In economics, supply and demand refers to the relationship between the quantity of a commodity that ...
Q: An electric switch manufacturing company is trying to decide between three different assembly method...
A: The Annual Worth calculation method is usually used for comparing alternatives. This method is also ...
Q: In an economy, the supply and demand functions of the residential rental market are as follows: Qs =...
A: The equilibrium in the market is determined by the market forces of demand and supply. The demand cu...
Q: What is the role of government in the circular flow of income and expenditure?
A: The circular flow of income model is the demonstration of the movement of money through society. Mon...
Q: The growth of total factor productivity is equal to the growth in real GDP... O a. Accounted for by ...
A: The measure that depicts the total value of goods and services being produced in an economy during a...
Q: US oil demand is given by P = 106 - 7* Q, where P and Q are oil price and oil quantity (in barrel) d...
A: Demand curve has a negative relationship with price.
Q: Due to the extremely bad weather, there is a poor harvest for apples which causes 10% change in the ...
A: The curve that depicts quantities of goods and services being demanded by individuals at various lev...
Q: Angela's reservation indifference curve, IC, After the new law Bruno 12 gets rent EF Can Angela be b...
A: Bruno is a landowner, and Angela is a farmer who gives Bruno a portion of her grain harvest in excha...
Q: Consider the Swan-Solow model of economic growth. [Hint: Question (e) below goes beyond the subject...
A: The Solow–Swan model, sometimes known as the exogenous growth model, is a long-run economic growth m...
Q: Owhen bond prices fall, the interest rate and aggregate demand fall. O when bond prices rise, real G...
A: Question 7 Stabilizing speculation means people will buy stocks, expecting the price to rise. Destab...
Q: High and uncertain inflation is damaging to the economy because... O a. There can be unexpected real...
A: Inflation refers to an increase in the general price level in an economy over a period of time. Inf...
Q: e. Trade Representative: "In an open economy with international trade, government spending is much m...
A: The only difference between the open economy and closed economy is that the open economy make trade ...
Q: You are shopping around to determine which bank account yields the highest return. You have three ch...
A: Future worth using compounding formula is F=A1+innt ... (1) Where i is the rate of intere...
Q: What is the law of diminishing returns and what does it imply about the shape of the firm’s average ...
A: Marginal Cost is the additional cost incurred in the production of one more unit of output.
Q: Redleaf company's market research department works on the manufacture and marketing of a winter tire...
A: Given that : when price= $10 ;demand = 36,000 units when price = $15 ; demand = 34,000 units N...
Q: For conscious parallelism to be proven, each manufacturer should be found to have acted on its own. ...
A: We show that Conscious parallelism it is the a price strategy that involves chànging the prices of ...
Q: LRAS Price level SRAS, Pe Po P, AD2 ADo AD Real GDP per year Refer to the figure above. If the aggre...
A: Discretionary fiscal policy refers to the change in government expenditure and tax rates. The gover...
Q: Discuss reasons why women are more likely to be economically burdened in old age vs men.
A: A person is said to be economically burdened in old age (or in any stage of life) when his/her incom...
Q: From your own understanding on the concept of “Game Theory”, what can you conclude about the relatio...
A: Game theory is a framework for thinking about social events with competing actors.Game theory is, in...
Q: Description Throughout this Quiz, we will consider of an industry with either one or two firms in it...
A: Considering both firms to be profit maximizing: IN case of bertrand competition where firms charge p...
Q: Player 2 C R T 8, ? 46, 2 Player 1 M 6, 12 5,? 4, 6 B ? ,6 6,8 8,3 Consider the following two-player...
A:
Q: Listen Number of Workers Total output 20 1 2 50 Listen 3 90 4 140 190 210 7 200 Where does the dimin...
A: Answer: The formula for the marginal product is given below: MPn=TPn-TPn-1Where,MPn=marginal product...
Q: Briefly define the steady state and show it in your diagram.
A:
Q: Suppose that the market demand for a certain product is given by P = 670 – Q. where Qis total indust...
A: Introduction Here market demand has given. P = 670 - Q Here are three firms, so market demand can be...
Q: A concrete pavement on a street would cost P 2M and would lasts for 5 years. Minor maintenance cost ...
A: The answer is given below
Q: Calculate the following using the Rule of 70: 3) How many years will Vietnam grow with a GDP of $2...
A: Rule of 70 implies that the time an economy takes to double it's GDP. Therefore, simply by computing...
Q: Consider the following payoff matrix
A: Given, Two Players : A and BA has two strategies : U and DB has two stratgies : L and RPay-offs are...
Q: Consider the following payoff matrix, where the first entry is the payoff for the row player. B L R ...
A: "Nash equilibrium is an equilibrium in game theory representing the set of strategies that players c...
Q: An investor bought stock for $40,000. Fourteen years later, the stock was sold for $50,000. If inter...
A: The inflation rate that is measured by taking into account inflation is referred to as the nominal i...
Q: The following graph depicts the daily labour supply curve for Jake, a worker in the construction ind...
A: Upward sloping labor supply curve for jake shows that there is a positive relationship between the w...
Q: An increase in government regulation would cause aggregate: O supply to shift to the left. O demand ...
A: A supply shift to the left If there is an increase in the government regulation, it would cause the ...
Q: What sampling technique is used? In a research class of 40 students, the teacher divides the cla...
A: Sampling is the process of selecting a specific number of observations from a larger population. The...
Q: Required information Problem 05.030 DEPENDENT MULTI-PART PROBLEM - ASSIGN ALL PARTS An electric swit...
A: i = 13% The analysis will be for 8 yrs.
Q: According to the liquidity preference theory, if the money supply increases, then, ceteris paribus, ...
A: This theory says that the interest rate in the market is determined by the demand and supply of mone...
Q: The advantage of using contractionary fiscal policy to address a short-run inflationary gap, rather ...
A: Contractionary fiscal policy is implemented by the government.
Q: If desired investment spending is relatively sensitive to changes in interest rates, then in reducin...
A: If desired investment spending is relatively sensitive to changes in interest rates, then changes in...
Q: o- 500 – 100P where Q is the number of songs demanded per hour and Pis the price of downloading a so...
A:
Q: Columns 1 through 4 of the accompanying table show the marginal utility, measured in utils, that Ric...
A: At this point, when the marginal utility from one good for each its price is equivalent to the margi...
Q: For a given level of national income, a decrease in private consumption or government and the flow o...
A: The Solow Model of economic growth or the neo classical model of growth This model is also known as ...
Answer to first part is 135(Q15), i want to confirm my answer for Q16 which i got as 3645
Step by step
Solved in 2 steps with 2 images
- Two firms compete in selling homogeneous goods. They choose their output levels q1 and q2 simultaneously and face demand curve P=80-6Q, where Q=q1+q2. The total cost function of firm 1 is C1=8q1 and the total cost function of firm 2 is C2=32q2+2/3. a) Find and draw the reaction curves of the two firms. b) Compute equilibrium quantities, price and profits. Suppose now that firm 2, thanks to a technological innovation, becomes more efficient. The new total cost function of firm 2 is C2= 8q2 c) Compute the new equilibrium quantities, price and profits.Consider a market for crude oil production. There are two firms in the market. The marginal cost of firm 1 is 20, while that of firm 2 is 20. The marginal cost is assumed to be constant. The inverse demand for crude oil is P(Q)=200-Q, where Q is the total production in the market. These two firms are engaging in Cournot competition. Find the production quantity of firm 1 in Nash equilibrium. If necessary, round off two decimal places and answer up to one decimal place.Exercise 6.8. Two companies with cost functions C1 (q1 )=5q1 and C2 (q2)= 0.5 q2 ² supply the to the same market. If the inverse market demand function is given by P = 100 - 0,5Q , where Q = q₁ + q₂ , find a) The production level of each firm, the price and the profits if the companies compete according to the Cournot model. (b) The level of production of each undertaking, the price and the profits if the undertakings agree to jointly maximise their profits. Show the results with the help of graphs.
- Suppose that two identical firms produce widgets and that they are the only firms in the market. The average and marginal cost is €60 for each firm. Price is determined by the following demand curve: P = 300 – Q where Q = Q1 + Q2. Suppose firm 1 is the leader and firm 2 is the follower. The output produced by each firm in a Stackelberg equilibrium is A. Firm 1 will produce 60 and Firm 2 will produce 120 B. Firm 1 will produce 80 and Firm 2 will produce 40 C. Firm 1 will produce 120 and Firm 2 will produce 40 D. Firm 1 will produce 120 and Firm 2 will produce 60Assume the inverse demand function in a market is given by P ( Q ) = 500 − Q where Q is the total industry output, that is the sum of the output of all firms in the market. There are two firms (indexed by i = 1,2) who both have a cost of producing the good given by c ( q i ) = 10 ∗ q i The two firms are competing in the Cournot manner, that is they choose their quantities simultaneously in order to maximize profits. What is the best response of firm 1 if firm 2 chooses an output level of 200? (input a whole number:) The best response function of firm 1 with respect to firm 2's quantity choice takes the form: q 1 ( q 2 ) = w ∗ ( x − y ∗ q 2 − z ) where (w,x,y,z) are parameters of the problem. Solve for this best response function and provide the product (w*x*y*z) in the next blank: What is the Nash Equilibrium quantity produced by firm 1? (round to the nearest whole number)An industry contains two firms producing homogenous goods, one whose costfunction is C(Q1) = 30Q1 and another whose cost function is C(Q2) = 30Q2. The demandfunction for the market is given by:P = 65 - QT where QT = Q1 + Q2. a. Assuming firms are choosing quantities according to the Cournot model, what iseach firm’s reaction function?b. Graph each firm’s reaction curve (on same graph).c. How much does each firm produce in the Nash equilibrium of Cournot's model?
- Consider two firms competing to sell a homogeneous product by setting price. The inverse demand curve is given by P = 40 − Q . Firm 1 has MC1(Q1) = 4 and firm 2 has MC2(Q2) = 4.5. Based on this information, we can conclude that the market price will be a. $4.25 and each firm will produce 18 units. b.$4 and each firm will produce 18 units. c. $4 and firm 1 will produce 36 units and firm 2 will produce 0 units. d. $4.50 and firm 1 will produce 36 units and firm 2 will produce 0 units.Consider two firms that produce the same product and sell it in a market with the following demand function: d(p) = max{0, 12 − p}, where p ≥ 0 is the unit price of the good. Suppose that, for technological reasons, firm 1 can produce either 4 units of output at the total cost of 10, or 6 units at the total cost of 15. Similarly, firm 2 can produce either 3 units of output at the total cost of 8, or 4 units at the total cost of 10. Assume that the firms make their production decisions simultaneously. Characterize the players’ strategy sets. Write down this game in the normal and extensive forms. Find all (if any) Nash equilibria of the game. Now assume that firm 1 makes its decision first. Firm 2 decides how much to produce after it observes firm 1’s output. Characterize the players’ strategy sets. Write down this game in the normal and extensive forms. Find all (if any) Nash equilibria of the game.Consider a market with two firms. Call them firm 1 and firm 2. The demand function describing the market is P = 216 – 0.4Q. Firms are initially identical, with the cost function C(q) = 140 + 40q. Calculate the total profits in the market. Under what conditions, the two firms may succeed to collude? How much would each firm earn if they could collude?
- Consider an identical n-firm Cournot market with market size S = 1, total demand p = 10 − Q (where Q is the total market quantity), and the total cost for each firm is C(q) = 1 + q. Assuming that firms continue to enter so long as profit is not negative, how many firms will enter the market in equilibrium?please solve the question completely. Suppose an industry consists of two firms that compete in prices. Each firm produces one product. The demand for each product is as follows: q1 = 25 - 5p1 + 2p2 q2 = 25 - 5p2 + 2p1 The cost functions are C(qi) = 2 + qi for i = 1; 2. (a) Are the products produced by these firms homogenous or differentiated? (b) Find the best response function for each rm. (c) How does the price firm 1 sets change with its belief about the price of its competitor\'s product? (d) What are the Nash equilibrium prices? (e) What is the percentage markup of price over marginal cost here (this is called the Lerner index)? Do the firms have market power? Why does the Bertrand paradox of zero variable duopoly profits apply here? (f) Suppose the firms merged. What is the new price of products 1 and 2? (g) Explain intuitively why the price is higher under monopoly than under Bertrand duopoly? (h) Are total monopoly profits higher or lower than the sum of Bertrand duopoly…Carl and Simon are the only sellers of pumpkins at the market, where the total demand function for pumpkins is q =3 ,200−1,600p. The total number of pumpkins sold at the market is q = qC + qS, where qC is the number that Carl sells, qS is the number that Simon sells. The cost of producing pumpkins for each farmer is $.50 per pumpkin; the fixed costs are zero. .a. Find the Cournot equilibrium price and quantities. .b. Find the Bertrand equilibrium price and quantities. . .c. Suppose now that every spring the snow thaws off of Carl’s pumpkin field a week before it thaws off of Simon’s. Therefore, Carl can plant his pumpkins one week earlier than Simon while predicting Simon’s choice based on the previous year information. Simon observes Carl’s choice and chooses how much pumpkin to plant. Find the new equilibrium price and quantities. .d. Compare the quantities and prices in parts a, b, and c. Rank these outcomes according to Pareto efficiency.