Q: (d) Use a first order condition to find the value of s that maximizes G(s). Call this value s*. (e)…
A: Cournot Duopoly is a classical model in economics that deals with a specific type of oligopoly,…
Q: Graphically illustrate how each of the following events, ceteris paribus, will affect the market for…
A: The demand and supply curves represent the relationship between the price and quantity demanded or…
Q: F 180= FS 160 F4 140 = F3 120= F² 110 F1 O 1 Figure 1 Production Possibilities Curve (PPC) --t V W…
A: Production Possibility Curve of PPC shows the different combinations of two goods that can be…
Q: The monopsonist will hire 50 units of labor at a wage rate of w = L = 50. In comparison to a…
A: Monopsonist: A monopsonist is a single buyer of labor in a labor market. This means there is only…
Q: An increase in the amount of physical capital per worker _________, while technological progress…
A: Aggregate production Function: The aggregate production function is an economic concept that…
Q: Which of the following are necessary in order for price discrimination to occur?. a downward sloping…
A: Monopolist: A monopolist is a single seller in the market and hence he faces the downward sloping…
Q: Let's say that the Fed is concerned about recession. It would use [Select] doing so is [Select]…
A: The Fed is the short name for the Federal Reserve System, which is also the central bank of the US.…
Q: If a graph of a perfectly competitive firm shows that the MR-MC point occurs where MR (which is…
A: A perfectly competitive market refers to a market in which there are many buyers and sellers dealing…
Q: Could you please provide a summary of the factors influencing the business environment and the…
A: The operations, strategies and growth of organizations are all impacted by a wide range of internal…
Q: Read Kiyotaki (1998). Consider the model in section 2 of the paper. Suppose there is no borrowing…
A: The net interest rate refers to the effective interest rate earned or paid on financial assets or…
Q: The below figure shows a market in equilibrium: FIGURE 6P1 22 20 18 16 14 12 10 Quantity a. Draw a…
A: An economy experiences deadweight loss whenever the market experiences any form of inefficiency. It…
Q: Macmillan Learning Banks in Ruritania have a required reserve ratio of 5%. Round all answers to one…
A: The simple money multiplier, also known as the deposit multiplier or money creation multiplier, is a…
Q: What is the set of strategies for player 2? O ((AA). (A,B), (B,A), (B,B)) O ((A,A), (A,B), (B,A),…
A: The set of strategies for player 2 is as follows:Player 2 has two pure strategies in the expanded…
Q: Question 2 of 25 In which situation is a country most likely to choose a flexible exchange rate for…
A: A flexible exchange rate, also known as a floating exchange rate, is a type of exchange rate regime…
Q: #2) Consider the following 2-player, simultaneous move static game summarized by the normal form…
A: Strategic Form Game is givenCOLABCX4,31,13,0ROWY1,12,51,1Z0,21,33,2Iterative Deletion of Strictly…
Q: Consider the two-sector model: {Yt=Ct+It Ct=0.3Yt-1+2800It=0.2Yt-1+200 Given that YO=50, find the…
A: Aggregate demand refers to the total demand for commodities and services made by all the economic…
Q: A country makes goods Y and Zin Years 1 and 2 at the quantities and prices shown below. The implicit…
A: To calculate the GDP at base prices for Year 1, we use the formula:GDP at base prices = Quantity *…
Q: S6. Consider a simplified model in which everyone gets electricity either from solar power or from…
A: ESS is a strategy in a population that makes long-term stability possible by preventing easy…
Q: Workers come in many different types, or productivities. The productivity of a worker is given by…
A: In terms of economics, productivity refers to the ratio of output to input in a production process.…
Q: 6. Two identical firms that have the cost function C(q) = 4qj, where j = {1,2} are competing in a…
A: In a duopoly, the market is dominated by just two companies. These businesses can compete in a…
Q: Consider an economy with two countries, China and the United States. China produces nontraded goods…
A: The consumer price index in the USA is given as The consumer price index in China is given as = For…
Q: The value of the euro today is $1.43. Yesterday, the value of the euro was $1.32. The percentage in…
A: When there is a change or shift in the value of per cent compared to the initial value, these…
Q: Long-Run Q 10 90 AC $
A: In the short run, some inputs are fixed and some are variable. Whereas in the long run, all the…
Q: If government spending is permanently increased, consumption and investment would fail? True or…
A: Government spending refers to the entirety of the funds disbursed by a government to cover the costs…
Q: Please continue to solve from Part d to Part e. Thank you
A: Time series data is a type of data where observations are recorded at regular time intervals, such…
Q: Consider the following information for a country: Consumption Function: C = 100+ 0.8Y Investment…
A: The overall monetary worth of all items/services produced within a nation's boundaries over a given…
Q: Suppose a pizza parlor has the following production costs: $3.00 in labor per pizza, $2.00 in…
A: Variable cost is that cost that varies with the change in production level. Hence, the variable cost…
Q: Refer to the following graph to answer the question. Price level (P) P3 P2 P₁ OD: A OD: C OB: D D…
A: Aggregate demand is the sum of consumption, investment, government spending and net export. AD = C +…
Q: 1. Define social surplus and deadweight loss. Provide examples and explain your answer.
A: Social surplus, or total surplus, represents the net benefit that society derives from the…
Q: Leontief model is used to analyze the interdependence of conomies. In this model you consider n…
A: The main idea behind the Leontief Input-Output Model is to study the flow of goods and services…
Q: (a) What price would be charged, what output would be produced, and what profit would be made by…
A: OutputTotal costMarginal costPriceQuantity demandedTotal revenueMarginal…
Q: 2. There are n ≥ 2 profit-maximising firms producing a homogeneous good, competing in quantity, and…
A: The economics of businesses is the study and analysis of business finances via the abstracting of…
Q: A lent Php 5770 to B for 2 years and Php 5642 to C for 4 years on simple interest at the same rate…
A: Given: Formula used:Where, P = Principal, R = Rate of interest, T = Time
Q: Given the game with two playoff matrices G = (-_-_-²3 -4), H =(¯ 2). a) Find values of the games…
A:
Q: Refer to the demand and supply schedule shown in the table below.Please provide explanation to each…
A: ***Since the student has posted multiple questions so the expert is required to solve only the first…
Q: Give typing answer with explanation and conclusion When a company only pays workers .50 an hour…
A: According to Martin Wolf's theory, a company paying workers only $0.50 an hour could potentially be…
Q: A regional municipality is studying a water supply plan for its tri-city and surrounding area to the…
A: In the face of increasing water demand in a tri-city and its surrounding area, a regional…
Q: If a copy center is considering the purchase of a new copy machine with an initial investment cost…
A:
Q: Use the figure below to answer the following questions. Price and cost (dollars per unit) MC Ps PA…
A: A Monopolistic competition is the market structure where exists a large number of buyers and sellers…
Q: Question D2. An Aggressor country is threatening to attack another victim country. The victim…
A: When players lack complete knowledge of critical elements, such as the payoffs or types of their…
Q: Consider an oligopolistic firm operating in a monopolistically competitive market. Describe the…
A: An oligopolistic firm is a company operating in an industry dominated by a small number of large…
Q: Comfy Limited manufactures glass ornaments and housewares. The business makes use of unskilled…
A: Corporate economics is focused on the investigation and analysis of corporate finances through the…
Q: The cost constraint ensures that O that information costs less than budget. O that information costs…
A: Cost constraint means the limitation imposed on an individual, firm, or government in their economic…
Q: Give typing answer with explanation and conclusion Demands for regulation of advertising _____ is a…
A: Demands for regulation of advertising of tobacco aimed at children is a trend appearing in both…
Q: In a perfectly competitive industry they produce 100 own small businesses. The demand curve of the…
A: In a perfectly competitive market, each individual firm takes the market price as given and acts as…
Q: Implement the following economic models and explain graphicaly what happened in economic events…
A: The IS-LM model shows the interaction between the real economy (goods and services market) and the…
Q: Q4.Suppose we are given the constant returns to scale (CES) production function q={ßa+aa }1/a a.…
A: The production function determines all the input bundles that produce the same output level.The…
Q: (J) Despite South Africa's poor educational outcomes, the it spends 19.5% of the overall national…
A: Education is a fundamental human right and is essential for individual and societal development. In…
Q: Consider the standard Hotelling model (two shops selling an identical good, same marginal costs,…
A: The Hotelling model is an industrial geographic competitiveness concept wherein businesses choose…
Q: The value of a portfolio to investors equals its expected return minus 35 times its variance. There…
A: Rational investors expect a return of 1Irrational investors are expecting a return of 1.8 The…
Consider the following oligopolistic market. In the first stage, Firm 1 chooses quantity q₁. Firms 2 and 3 observe Firm 1's choice, and then proceed to simultaneously choose q2 and 93, respectively. Market demand is given by p(Q) = 100 – Q, and Q = 9₁ +9₂ +93. Firm 1's costs are c₁ (9₁) = 1q₁, firm 2's costs are c₂(9₂) = 6q2 and firm 3's costs are C3(93) = 693. Starting from the end of the game, you can express Firm 2's best response function in terms of 9₁ and 93, and you can similarly express Firm 3's best response function in terms of q₁ and q₂. Using these, answer the following questions.
a) If Firm 1 chooses q₁ = 9, what quantity will Firm 2 choose?
b) If Firm 1 chooses q₁ = 100, what quantity will Firm 2 choose?
c) In the subgame perfect Nash equilibrium of this game, firm 1 produces what quantity?
d) In the subgame perfect Nash equilibrium of this game, firm 2 and firm 3 each produce what quantity?
Step by step
Solved in 3 steps
- Consider the following oligopolistic market. In the first stage, Firm 1 chooses quantity q. Firms 2 and 3 observe Firm 1's choice, and then proceed to simultaneously choose q2 and q1, respectively. Market demand is given by p(O) = 100 – Q, and Q = q1 + 42 + 41. Firm 1's costs are c, (41) = 34, firm 2's costs are cz(4,) = 34; and firm 3's costs are cs(qs) = 3q,. Starting from the end of the game, you can express Firm 2's best response function in terms of q and q3, and you can similarly express Firm 3's best response function in terms of qi and q2. Using these, answer the following questions. a) If Firm 1 chooses q1 = 9, what quantity will Firm 2 choose? b) If Firm 1 chooses qi = 100, what quantity will Firm 2 choose? c) in the subgame perfect Nash equilibrium of this game, firm 1 produces what quantity? d) In the subgame perfect Nash equilibrium of this game, firm 2 and firm 3 each produce what quantity?Consider the following oligopolistic market. In the first stage, Firm 1 chooses quantity q1. Firms 2 and 3 observe Firm 1's choice, and then proceed to simultaneously choose q2 and q3, respectively. Market demand is given by p(Q) = 100 – Q, and Q = q1 ++ q2 + q3. Firm 1's costs are c (q1) = lq,, firm 2's costs are c2(q2) = 442 and firm 3's costs are c3(q3) = 4q3. Starting from the end of the game, you can express Firm 2's best response function in terms of qi and 93, and you can similarly express Firm 3's best response function in terms of q and q2. Using these, answer the following questions. a) (0.5 point) If Firm 1 chooses q = 12, what quantity will Firm 2 choose? b) (0.5 point) If Firm 1 chooses g = 100, what quantity will Firm 2 choose? c) (1 point) In the subgame perfect Nash equilibrium of this game, firm 1 produces what quantity? d) (0.5 point) in the subgame perfect Nash equilibrium of this game, firm 2 and firm 3 each produce what quantity? Finish attempt .. ious page Site…Consider the following oligopolistic market. In the first stage, Firm 1 chooses quantity q1₁. Firms 2 and 3 observe Firm 1's choice, and then proceed to simultaneously choose 92 and 93, respectively. Market demand is given by p(Q) = 100 – · Q, and Q = 9₁ +92 +93. Firm 1's costs are c₁ (9₁) = 591, firm 2's costs are c₂ (92) = 492 and firm 3's costs are C3 (93) = 493. C2 Starting from the end of the game, you can express Firm 2's best response function in terms of 9₁ and 93, and you can similarly express Firm 3's best response function in terms of 9₁ and 92. Using these, answer the following questions. If rounding is needed, write your answers to 3 decimal places. a) If Firm 1 chooses q₁ = 3, what quantity will Firm 2 choose? b) If Firm 1 chooses 9₁ = 100, what quantity will Firm 2 choose? c) In the subgame perfect Nash equilibrium of this game, firm 1 produces what quantity? d) In the subgame perfect Nash equilibrium of this game, firm 2 and firm 3 each produce what quantity?
- Suppose the total demand for specialty coffee per hour in Ruston is Q = 640 - 80P. There are six (n = 6) monopolistically competitive firms currently in the market selling some variety of specialty coffee, each with total cost curves given by: TC₁ = 20+q; +0.0125q²| a. Find the proportional demand faced by one coffee shop, denoted Firm i. That is, suppose the firms have equal market share and determine the demand function for a single firm. b. Calculate the optimal quantity produced by Firm i. c. Calculate Firm i's profits. Will there be entry or exit by other coffee shops over time? d. Provide a generic graph the long-run outcome for Firm i given your prediction from (c). Label curves, axes, and intersection points.There are two firms that are producing identical goods in a market characterized by the inverse demand curve P = 60 - 2Q, where Q is the sum of Firm 1's and Firm 2's output, q₁+q2. Each firm's marginal cost is constant at 12, and fixed cost are 0. Answer the following question, assuming that the firms are Cournot competitors. a. Calculate each firm's reaction function and illustrate them graphically (15 points) b. How much output does each firm produce? (12.5 points) c. What is the market price? (7.5 points) d. How much profit does each firm earn? What is the industry profit? (10 points)Consider a Cournot duopoly with the following inverse demand function: P = 4,000 – 4Q1 - 4Q2. The firms' marginal costs are identical and are given by MC¡(Q¡) = 120QI. Based on this information, firm 1 and 2's reaction functions are Multiple Choice r1(Q2) = 485 - 0.5Q2 and r2(Q1) = 485 – 0.5Q1. r1(Q2) = 488 – 0.5Q2 and r2(Q1) = 488 – 0.5Q1. r1(Q2) = 33.3 – 0.25Q2 and r2(Q1) = 33.3 – | 0.25Q1. r1(Q2) = 288 - 0.5Q1 and r2(Q1) = 288 – %3D %3| 0.5Q2.
- 1. Two firms (A and B) play a competition game (i.e. Cournot) in which they can choose any Qi from 0 to ¥. The firms have the same cost functions C(Qi) = 10Qi + 0.5Qi2, and thus MCi = 10 + Qi. They face a market demand curve of P = 220 – (QA + QB). Now assume firm A chooses quantity first. Firm B observes this choice and then chooses its own quantity. d)Firm A has MRA = 150 – 4QA/3. What are the equilibrium QA and QB selected in this game? e)What is the equilibrium price, and how much profit does each firm collect?Consider a market with demand P(Q) = 39-3Q in which two firms compete. Firm 1 faces TC1(Q) = 18Q and firm 2 faces TC2(Q) = 9Q. Suppose that firm 1 chooses their quantity first, then firm 2 sees that quantity, and then firm 2 sets their quantity (Stackelberg duopoly). (a) Find the reaction function for firm 2 (b) What is the marginal revenue for firm 1 (given that they know that firm 2 will best respond)? (c) Find the Stackelberg equilibrium (d) Determine profits for each firm and consumer surplus. (e) Which firm is better off?What is the homogeneous-good duopoly Cournot equilibrium if the market demand function is Q=4,000-1,000p, and Firm l's and Firm 2's variable cost functions are V (q1) = 0.22qlandV (q2) = 0.22q2 , respectively. Select one alternative: Both firms produce 1300 units of outpuit. Both firms produce 1280 units of output. Both firms produce 1240 units of output. Both firms produce 1260 units of output.
- Consider two price-setting oligopolies supplying consumers in a certain region of a country. Firm 1 employs many of the people living there and the local government subsidizes its operations. In all other respects, the firms are identical-they have the same constant marginal cost, MC = 4, and produce the same good. The demand function for Firm 1 is q1 = 600 - 50p1 - 20p2 and for Firm 2 is q2 = 600 - 50p2 - 20p1, where p1 is Firm 1's price and p2 is Firm 2's price. a. What are the Nash-Bertrand equilibrium prices and quantities without the subsidy? b. What are they if Firm 1 receives a per-unit subsidy of S = 1? Compare the two equilibria.Consider two firms that produce the same good and competesetting quantities. The firms face a linear demand curve given by P(Q) =1 − Q, where the Q is the total quantity offered by the firms. The costfunction for each of the firms is c(qi) = cqi, where 0 < c < 1 and qiis the quantity offered by the firm i = 1, 2. Find the Nash equilibriumoutput choices of the firms, as well as the total output and the price, andcalculate the output and the welfare loss compared to the competitiveoutcome. How would the answer change if the firms compete settingprices? What can we conclude about the relationship between competitionand the number of firms?Consider a Cournot duopoly with the following inverse demand function: P = 400 − 3Q1 − 3Q2 . The firms' marginal costs are identical and are given by MCi(Qi) = 2Qi. Based on this information, firm 1 and 2's marginal revenue functions are Multiple Choice MR1(Q1,Q2) = 400 − 6Q1 − 3Q2 and MR2(Q1,Q2) = 400 − 3Q1 − 6Q2. MR1(Q1,Q2) = 200 − 6Q2 and MR2(Q1,Q2) = 200 − 3Q1. MR1(Q1,Q2) = 200 − 3Q1 − 3Q2 and MR2(Q1,Q2) = 200 − Q1 − 3Q2. MR1(Q1,Q2) = 400 − 6Q1 − 6Q2 and MR2(Q1,Q2) = 400 − 6Q1 − 6Q2.