The demand curve for milk can be represented by the following equation: Q = 6000 – 800P There are only two producers and the marginal cost to produce one unit of milk is $6 %3D (There is no fixed cost). If the capacity of each firm is 600 output, calculate the price range of milk under the Bertrand-Edgeworth Model.
Q: Suppose you know the demand curve is inelastic. This means that Question 2 options: if price…
A: When we know that the demand curve is inelastic then we know that whatever the price may be the…
Q: The demand and supply curves for a product are given as: Demand: p+ q = 120 Supply: 2 p-5 q = 40 At…
A: Given Demand equation: p+q=120 .... (1) Supply equation: 2p-5q=40 ... (2) Price p…
Q: Describe an industry with monopolistic competition and identify an example in Canada.
A: Monopolistic competition: - monopolistic market structure is the structure in which there is a large…
Q: w much does aggregate demand need to change to restore the economy to its long-run equilibrium? ыlon…
A: In macroeconomics, a multiplier is an element of proportionality that actions how much an endogenous…
Q: Which of the following markets is the closest to a perfectly competitive market? Question 10…
A: The structure of the market where consumers and producers tend to have full information and no costs…
Q: What is meant by elasticity?
A: Elasticity has its several meanings in various senses but here we will restrict our understanding of…
Q: How do politics work in organizations? What are the causes, consequences, and ethics of political…
A: Answer -3 This style of politics focuses on using authority to influence organizational…
Q: With the estimates shown below, Sarah needs to determine the trade-in (replacement) value of machine…
A: Given: Interest rate=8% per year To find: Market value of Machine X
Q: The table from the image provided shows the ability of two countries to produce TVs and chairs in a…
A: Absolute advantage basically refers to a situation in which one nation can manufacture certain…
Q: If you were on an island with 10 other people and there were no money, do you think that money would…
A: Money economies and barter economies are the two sorts of economies. Our modern economies are based…
Q: Please explain it briefly and answer it with more then 75 words Why would an international…
A: The answer is as follows:-
Q: d.How will the firms adjust if the full employment level of income is 1500? Is this an inflationary…
A: A recessionary output gap is when the actual output is less than the potential output and an…
Q: 2 5. The production function f(L, K) = (V[ + VK)´ is: A. homogeneous of degree n, where n > 1 B.…
A:
Q: What is a likely direct result in bank behavior after the Fed lowers required reserve rate? No…
A: In an economy, the action of the Central Bank has a direct and significant impact on the working of…
Q: If C = 5 +0.6Y, I = 2 - 0.1r, G= 3, T = 4, X = 5 and M = 2+0.1Y. Form a IS equation for 3 sector…
A: "IS curve equation is derived from goods market equilibrium as it shows different combinations of…
Q: What is the most effective monetary policy tool that the Federal Reserve uses? a) Open market…
A: The economies and the nations around the globe are involved in the economic as well as financial…
Q: 3. A machine with an initial price of $30,000 has an annual operating cost of $15,000 and a life of…
A: Using PW factor, PW of Machine 1 = 30000 - 15000(A/P, i, n) =…
Q: U3. Fast forward a decade beyond the situation in Exercise S3. Yuppietown's demand for bread and…
A: Given information Q1=8-P1-0.5P2 Q2=16-0.5P1-P2 MC of loaf of bread=$1 MC of pound of Cheese=$2
Q: Have any countries successfully enforced compulsorypopulation control methods?
A:
Q: Assume we combine contractionary fiscal policy with expansionary monetary policy. The result is of…
A: Fiscal policy is the policy which is implemented by the government of the nation. Hence, charge of…
Q: (a) Suppose that f is differentiable, positive and decreasing on [a, b] and has no critical points.…
A: Given, f is differntiable, positive and decreasing on [a, b] and has no critical pointsIf g(x)=∫αx…
Q: Suppose the price of white potatoes rises significantly, what do you predict will happen to the…
A: (1). As the price of white potatoes rise, the demand for sweet potatoes increase. If the price of…
Q: Calculate the maturity value: Principal (5) 8,000 Term (yrs) 17 Nominal Rate Compound Frequency…
A: Given the present value, PV = 8000 Time = 7 years Compounding periods, n = 7 x 2 = 14 Interest rate…
Q: Consider the production function f (L,K) = 10(L + 3K) a. Draw the isoquant qo 600, being careful to…
A:
Q: Explain what may cause a deterioration of the terms of trade. 
A: The proportion of a nation's export prices to its import costs is known as terms of trade (TOT). To…
Q: Which pair below are examples of automatic stabilisers? O taxes and welfare payments saving and…
A: When talking about automatic stabilizers, it can be said that these are the government programs or…
Q: What policies and practices did the United States of America use to control the governments and…
A: The term "government" is also used in the Commonwealth of Nations. It is used more narrowly to refer…
Q: Question 1 Given the following data for a country A for the year ended December 2021 Items RM…
A: The worth of a country's completed domestic products and services over a certain time period is…
Q: Explain in your own words what information the income elasticity of demand provides. If a good is…
A: Note: You have uploaded two questions at a time. Hence, we shall answer only the first one for you.…
Q: the uninflated present wort is 3000 in two years is 2308. what is the rate of inflation if the real…
A: Hyperinflation is the loss of purchasing power of a currency over time. The rate at which a basket…
Q: Which of the following will not change the equilibrium quantity and price for fast-food hamburgers?…
A: The equilibrium price and quantity exist at the level where the demand and supply are the same.
Q: what way did world economic patterns and growth change as Latin America became more integrated into…
A: The global economy, often known as the world economy, is the total of all activities that take place…
Q: 5. The cost function for a firm facing perfect competition is C(q)=1000+25q-0.5q^2+0.01q^3 Sketch…
A:
Q: The main responsibility of a Central bank is: Fiscal but not monetary policy…
A: A central bank is basically a financial institution with exclusive authority over the production and…
Q: which market structure is able to arise? a) oligopoly b) monopolistic competition <) monopoly d)…
A: Disclaimer“Since you have asked multiple questions, we will solve the first question for you. If you…
Q: Suppose that a firm’s emissions and Marginal Abatement Cost (MAC) data are summarized in the table…
A: Permit to Work is a methodical cycle intended to distinguish, convey, alleviate and control risk in…
Q: Suppose he barking sylem in country A has 5300 billon in total reserves and S12.000 bilon in money…
A: The required reserve ratio is the ratio of the required reserves to the total deposits.
Q: A change of which of the following will not directly shift the demand curve for Regular Coke?…
A: A shift in demand curve occurs when the quantity demanded of the good increases or decreases at the…
Q: Assume that Derryland and Whetonia can switch between producing cheese and producing bread at a…
A: A country should specialise in a particular good in which it has a competitive advantage.
Q: If a single price monopolist's linear demand curve has vertical intercept of 212.13 and horizontal…
A: When faced with a linear demand curve, a monopoly firm's marginal revenue curve is also linear,…
Q: Assume that Derryland and Whetonia can switch between producing cheese and producing bread at a…
A: Here, the given table shows the number of hours needed to produce 1 unit of output and number of…
Q: The marginal cost curve: is a vertical line. generally rises at first and then declines as output…
A: Marginal cost is the cost of producing additional unit of output. The shape of marginal cost depends…
Q: There is a factory that is polluting a lake that is used as a source of water by a farmer. The…
A: According to the question, A factory is polluting a lake that is used as a source of water by a…
Q: $10,000 $9,800 $9,600 $9,400 $9,200 $9,000 $8,800 $8,600 $8,400 $8,200 $8,000 $7,800 $7,600 $7,400…
A: Intersection of demand and supply of bond determines its price and price of bond and interest rate…
Q: Discuss monopoly markets and the ethical weaknesses of monopolies.
A: Market refers to the process through which buyers and sellers come to an agreement on the price and…
Q: Can the central-city dilemma be solved?
A: Central City dilemma can be solved.
Q: A currency exchange rate is the O price of a foreign currency, indicating how much a unit of foreign…
A: Exchange rate measures units of one country currency required to get one unit of another country…
Q: change in consumer tastes will lead to: Question 9 options: Movement ON the demand curve…
A: The change in consumer taste and preferences are the non - price determinants of demand. Therefore,…
Q: Which of the following statements in relation to monetary policy is false? The monetary transmission…
A: In an economy, monetary policies refers to the action of the Central Bank of an economy to influence…
Q: Milton Friedman argued nearly all economic fluctuations were caused by Multiple Choice sticky…
A: The correct option is money supply. Milton Friedman argued nearly all economic fluctuations were…
Step by step
Solved in 2 steps
- COURSE: MICROECONOMICS - Stackelberg ModelIn a given market good there are only 2 firms that satisfy the demand, and their respective total cost functions are: CTi = 400 and the demand that is estimated is P = 120 - 2QIf the exception variable of both firms is the quantity they will produce, such that the decisions to produce are made sequentially firm number 1 will be the leader who decides the quantity to produce and firm number 2 (follower) decides based on the production of firm number 1, we ask:(a) quantity produced by each firm and its equilibrium price in the market.(b) Profit of each company at equilibrium and (c) Graph your resultsTwo farmers produce milk for local town with local milk demand given by Q=100-1/3P (P denotes price measured in Rands, Q denotes the quantity measured in litres). Both farmers have the same cost function given by TC=150+2q (where q denotes output)a. What output should farmer 1 produce if he or she expects their rival to produce 20 units?Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) b. consider two cases: (i) Company is effectively able to price discriminate in thetwo markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging thesameprice in the two markets what are the profit maximizing levels of price,output, and the total profits? c. Analyze, with graphs, the two alternative pricing strategies available to the company.
- Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) A.Determine the company’s total profit function. Also, (i) What are the profit maximizing levels of price and output for the two markets? (ii) Calculate the marginal revenues in each market. B.Now consider two cases: (i) Company is effectively able to price discriminate in thetwo markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging thesameprice in the two markets what are the profit maximizing levels of price,output, and the total profits?…Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) (i) Company is effectively able to price discriminate in the two markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging the same price in the two markets what are the profit maximizing levels of price, output, and the total profits? (iii) Analyze, with graphs, the two alternative pricing strategies available to the company.Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) a. Determine the company’s total profit function. Also, (i) What are the profit maximizing levels of price and output for the two markets? (ii) Calculate the marginal revenues in each market.
- Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) Determine the company’s total profit function. Also, (i) What are the profit maximizing levels of price and output for the two markets? (ii) Calculate the marginal revenues in each market. Now consider two cases: (i) Company is effectively able to price discriminate in thetwo markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging thesameprice in the two markets what are the profit maximizing levels of price,output, and the total profits?…James mainly sells confectionery items, newspapers, magazines and cigarettes in his convenience store. Noting his small business is not thriving, he thought of selling hot pies and rolls too. Suppose the total cost function for rolls and pies is, TC = 900 + 50Q, Q = Q1 + Q2 Where Q1 and Q2denote the quantities of rolls and pies respectfully. If P1 and P2 denote the corresponding prices, the inverse demand equations are. Q1 = 70 - P1 and 0.5Q2 = 100 - P2 a)If James decides to make a total of 48 rolls and pies per day and charges different prices as above (that is, P1 ≠ P2 ), how many of rolls and pies each should he make in order to maximize the profit of a particular day? Estimate and interpret the Lagrange Multiplier λ [note: assume second-order conditions are satisfied]. b)Using your knowledge of input-output tables, explain which components of the economy will be affected if all convenience stores, including James’, closed down for three months due to the COVID-19. What would…Given the input-output matrix below, find the output matrix if final demand changes to 500 for water, 180 for electric power, and 800 for agriculture. Industry Electric Power Industry: Water Electric Power Agriculture Other Water 200 100 300 400 The output matrix is X= (Round to two decimal places as needed.) 480 120 240 360 Agriculture Final Demand 180 240 120 60 290 140 600
- The inverse demand for tea is given by P= 10 – 0.04Q, where Pis the price per a gram of tea and Qis the total number of grams of tea brought to market. There are two tea shops in the market. Shop 1's cost function is given by C = 0.01q,?, where qı is the number of grams of tea it brings to market. Shop 2's cost function is given by C2 = 0.01q2², where qp is the number of grams of tea it brings to market. Given that the two shops compete by setting output (Cournot), answer the following. a) Identify shop 1's reaction function to shop 2's output to within 2 decimal places (e.g. 0.33). 91= Number - Number 92 b) Identify shop 2's reaction function to shop 1's output to within 2 decimal places (e.g. 0.71). q2= Number Number 91 c) To within two decimal places (e.g. 0.63) what is the equilibrium output level of each shop and the equilibrium per gram price for tea. Shop 1 will produce Number grams of tea and shop 2 will produce Number grams of tea. The equilibrium market price is £ NumberRoad Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) Required. Determine the company’s total profit function. Also, (i) What are the profit maximizing levels of price and output for the two markets? (ii) Calculate the marginal revenues in each market.? 2. Now consider two cases: (i) Company is effectively able to price discriminate in the two markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging thesameprice in the two markets what are the profit…The marginal and average total cost curves for barbers in an area are cosntant at $12.00/haircut. The daily demand curve for haircuts in the area is given by: P = 22 - 0.001Qd where P is the price in dollars per haircut and Qd is the daily quantity demanded in number of haircuts. Haircuts are provided in a perfectly competitive market and each barber can provide exactly 25 haircuts daily. Suppose that the government decides to limit the number of barbers to 320. Each year, barbers must obtain a government-issued license to cut hair. Based upon the previous information: a. What will be the long-run equilibrium price for a haircut given there are only 320 licensed barbers?b. How much economic profit will each licensed barber earn daily?