You do decide to enter the market. You estimate that your company could command 19,500 of the possible doughnuts sold. If you were to sell your doughnuts at the same price of $2.19 per unit and the rest of the competitors in the market sell their doughnuts at an average of $1.99, what would your market share be for this doughnut market? Use the demand from the existing competitors from question 5 (136,500) to estimate share. Show your work. O 11.52% 18.23% 29.82% 21.28% 13.59%
Q: The following question relates only to the equilibrium in the goods market IN A CLOSED ECONOMY and…
A: The international market is the market where a nation is involved in trade with multiple nations.…
Q: A company produces very unusual CD's for which the variable cost is $ 11 per CD and the fixed costs…
A: Total cost is the sum of fixed and variable cost. Variable cost is the cost that vary with the…
Q: A company would like to invest on a project. The rate the company uses to justify their investments,…
A: Over the course of an investment, capital recovery refers to the return of your initial investment.…
Q: what type of policy should the Federal Reserve use in order to bring the economy back to Long Run…
A: If the unemployment rate > the natural rate of unemployment, then the actual GDP is lower than…
Q: For the cash flow diagram shown, the future worth in year 4 is closest to i = 7%/semiannual period t…
A: A cash flow statement gives information in regards to all cash inflows that an firms gets from its…
Q: The demand for hamburgers is given by Qd=10-p and the supply is Qs=4p-10, where pd and ps are,…
A: "Since you have posted a question with multiple subparts, we will solve first three subparts for…
Q: 1. Refer to the accompanying figure. Planned Aggregate Expenditure, PAE 4.750 4,000 3,250 1,000 45°…
A: The potential level of output is depicted by Y*. The potential level output is 3000 (See the…
Q: Interest rate (%) Othere will be an excess demand for money there will be an excess supply of money…
A: Equilibrium in money market is where the money demand curve intersects the money supply curve.…
Q: In a competitive industry O a. individual firms face downward sloping demand curves O b. firms can…
A: "A competitive industry is a market structure which consists of large number of buyers and…
Q: Find out the cross rate between US$ and British Pound Sterling(£) if the spot rate between British…
A: Given information: Spot rate between British Pound Sterling (£) and Japanese Yen (¥) Exchange rate:…
Q: Table H-1. Income Limits for Each Fifth and Top 5 Percent of All Households: 1967 to 2021 Current…
A: The upper limit of income shows the maximum income a person can earn. The upper limit of $30,000 on…
Q: (a) Suppose we have the following production function: Q = K + 10L Confirm the technology is…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: 2. MULTIPLECHOICE: A firm owner Sally meets her banker, Tom, to work out the details of a one-year…
A: The information which has been given is as follows:- Expected inflation by both = 3% Nominal…
Q: - Oil spills from oceangoing tankers are rare but bring huge damages to coastlines when they occur…
A: Externalities refer to the scenario when the production or consumption of a good or service by one…
Q: <plain dynamic and defensive open market operations. What is the purpose of each type? Describe two…
A: The phrase "open market" is used in economics to refer to free trade in the economy. Government…
Q: Cross-price elasticity demand and income elasticity of demand. What do positive and negative values…
A: Cross-price elasticity of demand It measures the percentage change in the quantity demanded of a…
Q: In a monopolistically competitive market, the demand for Zack's Rootbeer can be desribed as P=20-Q.…
A: Given, P=20-QMR=20-2QMC=2QATC=(Q2+10)Q Consumer surplus is the…
Q: Explain the effects of the expected and unexpected contractionary monetary policy in the New…
A: The new classical theory takes into account rational expectations. If the policy implementation is…
Q: Suppose that Canada possesses the following industry (inverse) supply and demand curves for clothing…
A: Equilibrium price is the price at which quantity demanded equals quantity supplied and the market…
Q: Is Price Elasticity of Demand always Negative? Give example when price elasticity of demand becomes…
A: "Demand in economics describes a relationship between different prices of a commodity and units of…
Q: Janet Foster bought a computer and printer at Computerland. The printer had a $600 list price with a…
A: Cash discount received = Net amount payable* discount rate Total Interest paid = Amount borrowed*…
Q: 2. Consider a standard Cournot triopoly model, i.e., inverse demand p(Q) = a - bQ, where Q = -1 9₁…
A:
Q: Corporate directors owe fiduciary duties/obligations to the corporation and its shareholders".…
A: Certain obligations and tasks are associated with the post of director for a Private Limited…
Q: The illustrates the combinations of two goods that a society can produce if all of its resources are…
A: The concept of absolute advantage illustrates the ability of a person, firm, or nation to produce…
Q: (d) What do we mean by an exit price? What is the exit price if r = $100 and w = $2000? Explain. (e)…
A: Cost minimization problem of producer: For the given output level the firm and per unit cost of…
Q: why might managers of firms selling tires be more concerned about their companies reputation than…
A: Managers of firms selling tires be more concerned about their companies reputation than the managers…
Q: If a price ceiling is set at $2 in the above market, there is excess blanks.) O Supply, 3 Supply, 2…
A: Consumer surplus is the area below demand curve and above price. Producer surplus is the area below…
Q: asmeen purchased stock on January 30, 2017. If she wishes to achieve a long-term holding period,…
A: Capital assets are a type of asset the taxpayer purchases as a long-term investment. The purpose of…
Q: The following question relates only to the equilibrium in the goods market IN A CLOSED ECONOMY and…
A: Introduction The simple keynsian model is the keynsian economic model in a closed economy framework.…
Q: The marginal revenue (MR) curve facing a single-price monopolist: lies below its average revenue…
A: In case of Monopoly there is a single firm who controls the entire market. The firm is a Price…
Q: Capital inflows in the Trinidad and Tobago balance of payments accounts include a. purchases of…
A: Balance of payment is a statement that records all the monetary transactions of a country with the…
Q: A manufacturer has been selling 1750 television sets a week at $420 each. A market survey indicates…
A: Demand - In an economy demand is the quantity of the good that consumers are willing to buy at…
Q: Last year you purchased a bond with an interest rate of 5 percent. Now the interest rate on the bond…
A: Bonds are debt instruments with long maturities with annual or semiannual interest rates to be paid…
Q: How much money would have to be placed in a sinking fund each year to replace machine B at the end…
A: Salvage value is alluded to as the approximate value of an asset toward the end of its useful life…
Q: Emeril owns his own restaurant, which earns a yearly total revenue of $1,100,000. The yearly cost of…
A: Explicit Cost: Explicit costs are out-of-pocket costs for a firm—for example, payments to labour,…
Q: Explain why the industry supply curve is not the long-run industry marginal cost curve. The industry…
A: The marginal cost (MC) curve is defined as the change in total cost divided by the change in energy…
Q: speculative bubble occurs when O Buyers use credit to make purchases they cannot afford O Investors…
A: "Since , multiple questions has been asked by you , we will solve first question for you. Please…
Q: 3. Consider a society of identical individuals who live for two periods. They have the following…
A: Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts for…
Q: Investment Problem ost of bldg.. -5M ross Revenue = 9.5 M perating expense = 4M ominal interest rate…
A: Total profit in simple words we can say that it is considered to be as that profit which a company…
Q: (a) Suppose we have the following production function: Q=1 Suppose K is fixed in the short- run at…
A: Given:Q = K1/4L3/4Short-run: K=16C = rK + wLC = 200K + 300L
Q: The production function for a widget-manufacturing firm is given by q = 9K0.5L0.5, where q is the…
A:
Q: Question 4 If an increase in the price of a good has no impact on the total revenue in that market,…
A: Total revenue is the revenue which has been generated by sale of all goods. This is given as:- TR…
Q: Compare and contrast the difference between dynamic (intertemporal) efficiency and static efficiency…
A: Since you have asked a question with multiple sub-parts we will solve the first 3 sub-parts. To get…
Q: Consider the following IS-LM-BP model: IS Model: C = 250 +0.5(YT); T = 110+ 0.11Y; I= 150+ 0.35Y -…
A:
Q: (d)_(Cournot Competition) Now suppose we added a second firm that has identical costs to the…
A: Dead weigh loss: It is defined as the loss of total welfare (or the total surplus = consumer surplus…
Q: 2. (a) Consider the generalized linear regression model Yt = a + Bæt + Et. 4 Assume Est = 0 and that…
A: In econometrics, the method of Generalized Least Squares (GLS) is used when ordinary least square…
Q: he consumption expenditure in the economy is $200mn. The investment expenditure in he economy is…
A: Government spending or government expenditure can be divided into three primary groups, government…
Q: Explain what (1) process upgrading, (2) product upgrading, (3) functional upgrading, and (4)…
A: The concept of the global value chain acknowledges that the design, production, and marketing of…
Q: Haley used $200,000 from her savings account deposits as a down payment to buy a house. What…
A: A Medium of Exchange: The just alternative to utilizing money is to return to the bargain…
Q: QUESTION 30 If capital (K) is free to move internationally, then K will flow from the nation with…
A: It is given that capital (K) is free to move from one nation to another. Then, there will be free…
Mf1.
Step by step
Solved in 3 steps
- Suppose the European Union (EU) was investigated and proposed a merger between two of the largest distillers of premium Scotch liquor. Based on some economists’ definition of the relevant market, the two firms proposing to merge enjoyed a combined market share of about two-thirds, while another firm essentially controlled the remaining share of the market. Additionally, suppose that the (wholesale) market elasticity of demand for Scotch liquor is −2 and that it costs $16.90 to produce and distribute each liter of Scotch. Based only on these data, provide quantitative estimates of the likely pre- and postmerger prices in the wholesale market for premium Scotch liquor. Instructions: Do not round intermediate calculations. Enter your final responses rounded to the nearest penny (two decimal places). Pre-merger price: $ Post-merger price: $Suppose the European Union (EU) was investigated and proposed a merger between two of the largest distillers of premium Scotch liquor. Based on some economists’ definition of the relevant market, the two firms proposing to merge enjoyed a combined market share of about two-thirds, while another firm essentially controlled the remaining share of the market. Additionally, suppose that the (wholesale) market elasticity of demand for Scotch liquor is −1 and that it costs $15.70 to produce and distribute each liter of Scotch.Based only on these data, provide quantitative estimates of the likely pre- and postmerger prices in the wholesale market for premium Scotch liquor.Instructions: Do not round intermediate calculations. Enter your final responses rounded to the nearest penny (two decimal places).Pre-merger price: $ Post-merger price: $Suppose the European Union (EU) is investigating a proposed merger between two of the largest distillers of premium Scotch liquor. Based on some economists’ definition of the relevant market, the two firms proposing to merge enjoyed a combined market share of about two-thirds, while another firm essentially controlled the remaining share of the market. Additionally, suppose that the (wholesale) market elasticity of demand for Scotch liquor is –1.3 and that it costs $16.20 to produce and distribute each liter of Scotch. Based only on these data, provide quantitative estimates of the likely pre- and postmerger prices in the wholesale market for premium Scotch liquor. In light of your estimates, are you surprised that the EU might raise concerns about potential anticompetitive effects of the proposed merger? Explain carefully.
- The two major producers in the beer industry, Anheuser-Bush (Firm 1) and Grupo Modelo (Firm 2) are about to enter the Chilean market as imported beers (Bud Light and Corona Light). A detailed market research analysis indicate that an approximate market demand structure for this product is P = 26.3 – 2Q (price per liter), where Q = Q1 + Q2 (in millions of liters per month). The firms’ cost structures are: TC1 = 6 + 2.5Q1 and TC2 = 8 + 1.8Q2. Instructions: Use no decimals. Use the average cost to calculate monopoly profits. Do not round if values are used to complete other calculations. Complete the following table. Q1 Q2 P Profits F1 Profits F2 F2 cheats w/ QDC, F1 colludes F2 cheats w/ QBRF, F1 colludesBaker Enterprises operates a midsized company that specializes in the production of a unique type of memory chip. It is currently the only firm in the market, and it earns $10 million per year by charging the monopoly price of $115 per chip. Baker is concerned that a new firm might soon attempt to clone its product. If successful, this would reduce Baker’s profit to $4 million per year. Estimates indicate that, if Baker increases its output to 280,000 units (which would lower its price to $100 per chip), the entrant will stay out of the market and Baker will earn profits of $8 million per year for the indefinite future. 1. What must Baker do to credibly deter entry by limit pricing? 2. Does it make sense for Baker to limit price if the interest rate is 10 percent?A decorator, who is a monopolist, makes two types of specialty picture frames. From experience, the decorator has determined that if x frames of the first type and y frames of the second type are made and put on sale in a showroom, they can be sold for (100 - 2x) dollars and (120 - 3y) dollars each, respectively. The total cost of constructing these frames is (12x + 12y + 4xy) dollars. How many frames of each type should be produced to realize the maximum profit. and what is the maximum profit? Make sure to verify that this is indeed a maximum.
- Pre-mixed concrete is an important input for the construction industry. Concrete cannot be stored or transported over long distances as it begins to set after only a few hours. For this reason, only the three local firms—Aggregate Inc., Big Industries and ConCorp—are in a position to compete in the market. Moreover, the capital and regulatory requirements for constructing a new concrete plant are substantial, creating an effective barrier to entry. Pre-mixed concrete is regarded as a homogeneous good by the construction industry. Inverse demand in the market has been estimated to be, P = 520 − Q , 50 where P represents the price of a cubic metre of concrete in dollars, and Q is the total number of cubic metres of concrete supplied into the market on a given day. At present the three firms appear have identical production costs, with each firm facing fixed costs of $400,000 per day and a marginal cost of $160 per cubic metre. Big Industries and ConCorp estimate that the proposed merger…Pre-mixed concrete is an important input for the construction industry. Concrete cannot be stored or transported over long distances as it begins to set after only a few hours. For this reason, only the three local firms—Aggregate Inc., Big Industries and ConCorp—are in a position to compete in the market. Moreover, the capital and regulatory requirements for constructing a new concrete plant are substantial, creating an effective barrier to entry. Pre-mixed concrete is regarded as a homogeneous good by the construction industry. Inverse demand in the market has been estimated to be,P = 670 − Q/40,where P represents the price of a cubic metre of concrete in dollars, and Q is the total number of cubic metres of concrete supplied into the market on a given day. At present the three firms appear have identical production costs, with each firm facing fixed costs of $400,000 per day and a marginal cost of $190 per cubic metre. Big Industries and ConCorp estimate that the proposed merger…Pre-mixed concrete is an important input for the construction industry. Concrete cannot be stored or transported over long distances as it begins to set after only a few hours. For this reason, only the three local firms—Aggregate Inc., Big Industries and ConCorp—are in a position to compete in the market. Moreover, the capital and regulatory requirements for constructing a new concrete plant are substantial, creating an effective barrier to entry. Pre-mixed concrete is regarded as a homogeneous good by the construction industry. Inverse demand in the market has been estimated to be,P = 670 − Q/40,where P represents the price of a cubic metre of concrete in dollars, and Q is the total number of cubic metres of concrete supplied into the market on a given day. At present the three firms appear have identical production costs, with each firm facing fixed costs of $400,000 per day and a marginal cost of $190 per cubic metre. Big Industries and ConCorp estimate that the proposed merger…
- Pre-mixed concrete is an important input for the construction industry. Concrete cannot be stored or transported over long distances as it begins to set after only a few hours. For this reason, only the three local firms—Aggregate Inc., Big Industries and ConCorp—are in a position to compete in the market. Moreover, the capital and regulatory requirements for constructing a new concrete plant are substantial, creating an effective barrier to entry. Pre-mixed concrete is regarded as a homogeneous good by the construction industry. Inverse demand in the market has been estimated to be,P = 670 − Q/40,where P represents the price of a cubic metre of concrete in dollars, and Q is the total number of cubic metres of concrete supplied into the market on a given day. At present the three firms appear have identical production costs, with each firm facing fixed costs of $400,000 per day and a marginal cost of $190 per cubic metre. Big Industries and ConCorp estimate that the proposed merger…Pre-mixed concrete is an important input for the construction industry. Concrete cannot be stored or transported over long distances as it begins to set after only a few hours. For this reason, only the three local firms—Aggregate Inc., Big Industries and ConCorp—are in a position to compete in the market. Moreover, the capital and regulatory requirements for constructing a new concrete plant are substantial, creating an effective barrier to entry. Pre-mixed concrete is regarded as a homogeneous good by the construction industry. Inverse demand in the market has been estimated to be, P = 520 − Q , 50 where P represents the price of a cubic metre of concrete in dollars, and Q is the total number of cubic metres of concrete supplied into the market on a given day. At present the three firms appear have identical production costs, with each firm facing fixed costs of $400,000 per day and a marginal cost of $160 per cubic metre. Big Industries and ConCorp estimate that the proposed merger…Pre-mixed concrete is an important input for the construction industry. Concrete cannot be stored or transported over long distances as it begins to set after only a few hours. For this reason, only the three local firms—Aggregate Inc., Big Industries and ConCorp—are in a position to compete in the market. Moreover, the capital and regulatory requirements for constructing a new concrete plant are substantial, creating an effective barrier to entry. Pre-mixed concrete is regarded as a homogeneous good by the construction industry. Inverse demand in the market has been estimated to be, P = 520 − Q , 50 where P represents the price of a cubic metre of concrete in dollars, and Q is the total number of cubic metres of concrete supplied into the market on a given day. At present the three firms appear have identical production costs, with each firm facing fixed costs of $400,000 per day and a marginal cost of $160 per cubic metre. Big Industries and ConCorp estimate that the proposed merger…