7. find the amount of firms which exist in the industry for M = 2,4,6,8 Use a cournot model with linear demand and identical firms scaled by M Q(P) = M(D-P) TC(Q) = cQ+F D=6 c=2 F=2
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find the amount of firms which exist in the industry for M = 2,4,6,8
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- You are the manager of Taurus Technologies (Firm 1), and your sole competitor is Spyder Technologies (Firm 2). The two firms’ products are viewed as identical by most consumers. The relevant cost functions are C(Q1) = 120 + 8Q1 and C(Q2) = 120 + 12Q2, and the market demand curve for this unique product is given by P = 160 – 2.5Q. Given this information, the profits for firm 1 are = $__. Give typing answer with explanation and conclusionConsider the market for cola soft drinks where Pepsi and Coke are dominating this market with well above 90% markets share combined. Under what market structure do Pepsi and Coke operate? What microeconomic model can best describe the behavior of Pepsi and Coke? Explain the main theme of this model. Given the obvious market share of both Pepsi and Coke, on what grounds would you justify the multibillion-dollar annual advertising spending by those two companies?Q. 4 The following total cost (TC) relation holds in both short run and long run for a monopolistically competitive firm TC=100+3Q+0.03Q^2 Where Q is the quantity of output TC function includes a risk adjusted normal rate of return on the firm’s investment In the short run, total revenue (TR) relation for this monopolistically competitive firm is given by: TR=11Q-0.01Q^2 Due to a high degree of product differentiation maintained by the firm, the firm demand curve in the long run is a parallel shift of its short-run demand curve. To maximise total profit in the short run, the firm should produce ___________ units of output ; To maximise total profit in the long run, the firm should produce _________ units of output. a.50;100 b. 100;50 c.100;58 d. 50;58
- The Zinger Company manufactures and sells a line of sewing machines. Demand per period (Q) for a particular model is given by the following relationship:Q = 400 − .5Pwhere P is price. Total costs (including a "normal" return to the owners) of producing Q units per period are:TC = 20,000 + 50Q (a) Express total profits (π) in terms of Q. (b) At what level of output are total profits maximized? What price will be charged? What are total profits at this output level? (c) What model of market pricing has been assumed in this problem? Justify your answer.Question 9 You have been appointed the new managing director of BOTCHPOWER, which has bought a major stake in Ghana’s ECG and you company is described as a monopolistic competitive firm in the supply of electricity in Ghana. In effect, your firm has the power to discriminate between domestic consumers and commercial consumers of electricity in Ghana. To help you price your services appropriately to maximize profit, you engaged an economist who estimated the demand function for both Domestic consumers and Commercial consumers as: ? = 48 – 0.4? Domestic Consumers -- ? = 20 – 0.1? Commercial Consumers (( Where ?- and ?( are the respective kilowatts (KW) of electricity consumed by Domestic Commercial consumers and ? and ? are their respective prices per kilowatt. If the total cost -( of this BOTCHPOWER company for producing a kilowatt of electricity is given as ?? = 70 + 80?, where ? = ?- + ?(: a) What price will BOTCHPOWER charge per kilowatt to maximize profits: i. With discrimination…6.Hypotheses Which of the following statement(s) is/are true if all of Stahl et al’s hypotheses are true? a. Brand equity and behaviour change together b. Increases in differentiation are positively associated with customer acquisition c. Changes in knowledge are negatively associated with retention rates d. Changes in esteem are not associated with changes in acquisition rates
- Assume that the smartphone manufacturing industry is in monopolistic competition. Assume that smartphonemanufacturers are earning economic losses. Illustrate a correctly labeled model for a firm in this industry.Exercise 13.2. A homogeneous products duopoly faces a market demand function given byP = 300 − 3Q, where Q = Q1 +Q2. Both firms have constant marginal cost MC =100.a) What is Firm 1’s profit-maximizing quantity, given that Firm 2 produces an output of 50 unitsper year?There are two ice-cream parols on a beach. The dayly demand for ice-creams is given by Q = 3079 - 3p. The average variable cost of an ice-cream is 70, while the rent of the place is 966. How many ice-creams is the 'Leader' company selling if the two ice-cream stands operate as Stackelberg duopolists? (Please use 2 decimals in your answer.)
- Hello! I just want to ask for help whether the answers in the given pictures are correct. If it's not, please help me recheck and resolve it. Please refer to the given pictures below for the answers. After verifying the given answers shown in the subsequent picture, PLEASE ANSWER NUMBER 2: Compare the results of your calculations in item no.1 using a graphical illustration. SITUATION/PROBLEM: Consider two identical firms with similar cost functions given by C1 = cq1 and C2 = cq2 . The inverse demand function for the good Q is given by P = a - Q, where Q = q1 + q2 . 1. Solve for the equilibrium price, equilibrium quantity and the profit of each firm under a: a.) quasi-competitive model b.) cartel model c.) cournot solution model 2. Compare the results of your calculations in item no.1 using a graphical illustration. NOTE: Type only your answers. Please do not handwritten your answers.3 Consider the Dixit capacity investment model when the inverse market demand curve is P(Q) = 200 − Q, w = 20, r = 10, and K = 200. a. Derive a new firm’s post-entry best reply function. b. Given initial capacity of x, derive the incumbent firm’s post-entry best reply function. c. Given x, derive the post-entry equilibrium profit of a new firm. d. Derive the minimum capacity that makes entry unprofitable. e. Derive the optimal capacity choice of the incumbent firm.Argyle is a large, vertically integrated firm that manufactures sweaters from a rare type of wool produced on its sheep farms. Argyle has adopted a strategy of selling wool to companies that compete against it in the market for sweaters. Explain why this strategy may, in fact, be rational. Also, identify at least two other strategies that might permit Argyle to earn higher profits.
