Consider a market where the inverse demand function is P = 100 - Q. All firms in the market have a constant marginal cost of $10, and no fixed costs. Compare the deadweight loss in a monopoly, a Cournot duopoly with identical firms, and a Bertrand duopoly with homogeneous pro
Q: 6. If Podunk's airport allows night takeoffs and landings, the 40 houses nearby each have a market…
A: To determine the right pricing for stocks and bonds, one might utilise the idea of a present…
Q: re is a road between the suburbs and downtown. The road becomes congested at rush hour. As long as…
A: There is a road between the suburbs and downtown. As long as fewer than 99 people use the road…
Q: A bike repair shop charges the competitive market price of $9 per bike repaired (P=$9). The firm's…
A: Perfect competition: A firm in the competitive market is a price taker because it has large number…
Q: Fiscal pollcy, the money market, and aggregate demand Suppose there is some hypothetical economy in…
A: John Maynard Keynes devised the AD-AS model to explain changes in the economy's production and price…
Q: A commercial 3D printer is purchased for $310,000. The salvage value of the printer decreases by 45%…
A: Equivalent uniform annual cost (EUAC) describes the constant cost over the course of the life of a…
Q: If the demand for pizza falls, pizza suppliers will suffer economic losses and some firms will…
A: In economics, a market is an amalgamation of systems, organizations, infrastructures and relations…
Q: lease no written by hand Suppose that in a country one-third of all females born die in infancy,…
A: Introduction: In this scenario, we are given information about the mortality rates and childbearing…
Q: Develop a spreadsheet model to determine how much a person or a couple can afford to spend on a…
A: Total monthly gross income = $6000 Non-mortgage housing expense = $300 Monthly installment debt =…
Q: Outline TWO (2) uses of National Income statistics. Explain FOUR (4) limitations that these…
A: National income statistics refer to quantitative measures that measures the economic activity and…
Q: 6. Consumer's surplus is the highest in the case c (A) Necessities (B) Comforts (C) Luxuries
A: Consumer surplus is gradually an essential concept in economics, and it is defined as the difference…
Q: You plan to purchase a car for $28,000. Its market value will decrease by 20% per year. You have…
A: The purchase value of the car=28000 Market value decrease by 20% each year Fuel cost=0.0
Q: Suppose two parties agree that the expected inflation rate for the next year is 6 percent. Based on…
A: The ex ante real interest rate refers to the expected or anticipated real interest rate on an…
Q: O internal cost. O internal benefit. external cost. external benefit. ep .lassily
A: Internal and external costs & benefits are the economic concepts. The costs explain the expenses…
Q: 8. Consider the two-player game described by the payoff matrix below. Player B R Player A U D L 1,1…
A: Nash equilibrium is the point of a game corresponding to which each participant optimizes his…
Q: 1c. Using Excel or grid paper, based on the above information, plot the demand curve, MR curve, MC…
A: profits = Total Revenue - Total Cost. MR (at Q=2) = TR (at Q=2) - TR (Q =1) MC (at Q=2) = TC (at…
Q: One of the important events in world trade in recent months has been the escalation of a trade war…
A: A trade war is basically what is going on where nations increment tariffs, portions, or other trade…
Q: QUESTION 20 You borrow $10,000 at an interest rate of 5% to open Movies Galore, a DVD rental store.…
A: Economic Profit can be defined as the profit earned when both explicit and implicit costs are…
Q: Now we're adding an LM curve to the economy from Question 1. The money market is given by M/P =…
A: C=a+b(Y-T) C=4+0.7(Y-9) T=9 MPC=0.7 G=10 I=10-90r r = 0.047
Q: Some values of a function and its 3-unit moving average are given. Supply the missing information: x…
A: Since you have posted multiple questions, we will provide the solution only to the first question as…
Q: In long-run equilibrium for a perfectly competitive industry, price equals short-run marginal cost.…
A: Long-run equilibrium refers to the state of balance and stability reached by a market or industry in…
Q: draw an isocost/isoquant diagram for the question.
A: The ideal input mix refers to the blend of resources a company utilizes to achieve a specific output…
Q: The graph titled Soy Bean Market is a graph of the market for soy beans, a perfectly (purely)…
A: A Short-Run is defined as a concept which states that in a given period, at least one input or cost…
Q: Infrastructure, such as public works and public services, is also referred to as social capital.…
A: Public services refer to a wide range of essential services provided by the government or other…
Q: You sit down with the world's least helpful financial advisor who never tells you the future value…
A: Formula for annuity due (payments are made in the beginning of every period) F =…
Q: What is the equilibrium of the game below? High End High End Winery 2 Chean Wine Winery 1 High End…
A: The film follows John Preston (Bale), a law enforcement officer in a future when sentiments and…
Q: QUESTION 17 The decline in the economic value of an asset over time is called O a financial loss. O…
A: The question asks about the term used to describe the decline in the economic value of an asset over…
Q: Question(4): A power plant is being considered in the dead sea location. For an initial investment…
A: The following question pertains to the evaluation of a power plant investment opportunity in the…
Q: Tom, a math major, examines Jane's economics class notes and observes that when price- taking firms…
A: Tom's observation is correct. When price-taking firms earn economic profit, they do not necessarily…
Q: QUESTION 29 Which of the following help to correct for the market failure of imperfect information?…
A: "Since you have posted multiple questions, the answer to the first one will be provided as per the…
Q: The ethanol industry is perfectly competitive, and each producer has the long-run marginal cost…
A: In perfect competition, There exists a large number of buyers and sellers. The firm will produce…
Q: Three mutually exclusive project alternatives are being evaluated. The estimated cash. flows for…
A: Annual worth analysis is a financial evaluation method used to compare and assess the economic…
Q: Suppose a firm has a production function q = f(L,K) = 3L + 2K, and the factor prices are w = $3 and…
A: Given: Production function : Q = 3L + 2K w (wage rate) = r (capital cost per unit) = $3 The firm…
Q: Consider three different closed economies with the following national income statistics. Country A…
A: Aggregate demand refers to the total demand for commodities and services made by all the economic…
Q: The table below shows the daily costs of Cathy's Corn Stand. Cathy sells her corn cobs in a…
A: Marginal Cost: it refers to the change in total cost due to 1 additional unit of production. As due…
Q: (More difficult) Assume our standard model. Both Meb and Des have 5 hours. In an hour, Meb can knit…
A: Opportunity Cost: It refers to the foregone revenue on the next best alternative if we pick a…
Q: Discuss the importance of trading of goods for the Caribbean islands, how will this benefit the…
A: Introduction: The trading of goods plays a crucial role in the development and prosperity of the…
Q: How will the following event affect variables 1 through 3 in the foreign exchange market under a…
A: The 'foreign exchange (FX) market' translates to a decentralized global marketplace wherein…
Q: (c) ALBUS MINERVA N SEVERUS 2,1,1 13,1 ALBUS MINERVA 10,4,4 S b 1,3,1 12,4,0 10,2,3 14,1,5
A: Albus plays at the two nodes which we will assume as first node and second node. He has two possible…
Q: The JSE tracked firmer global peers on Wednesday as anxiety surrounding the global banking sector…
A: Steinhoff announced late on Tuesday it had a drawn up new restructuring plan in a last- ditch…
Q: Suppose there is some hypothetical economy in which households spend $0.50 of each additional dollar…
A: Aggregate demand refers to the total amount of goods and services that households, businesses, and…
Q: You are the fifteenth caller for a contest at your favorite radio station and win your choice of…
A: The problem of choice, also known as the problem of scarcity, is a fundamental concept in economics…
Q: so do i not draw a supply curve. whats the reasoning for not drawing it.
A: Total factor productivity (TFP) gauges the effectiveness with which an economy utilizes its…
Q: P, MR, AC, MC MC Demand * AC G MR H Quantity a) Identify the quantity of output the monopoly wishes…
A: Monopoly is a form of market structure in which a single firm sells a commodity for which there are…
Q: You are a college sophomore who tutors fellow classmates in your free time for extra money. With…
A: Earning by tutoring=2000 per year for 3 years If takes training Training cost=6000 and not able to…
Q: The figure above illustrates a market for gasoline with a $1 tax imposed on the buyers. What is the…
A: Tax incidence refers to the distribution of the burden or impact of a tax between buyers and sellers…
Q: To run a kid's lemonade stand, you need: Lemonade mix, such as Country Time Tap water Ice Cups A kid…
A: Lemonade mix: A product sued to make lemonade, often in powdered or liquid form, which provides the…
Q: Consider an economy described by the following: The expression for the MP curve is: OA. r=3+0.5m.…
A: Aggregate demand is composed of consumption spending, investment spending, government purchases and…
Q: QUESTION 25 Refer to the information provided in Figure 12.4 below to answer the question(s) that…
A: Cost- It is the total amount spent on producing a good or service. It expresses the monetary value…
Q: Refer to the diagram to the right: Using the appropriate drawing tool, shade in the region that…
A: A firm’s willingness to pay for each unit of labor it wishes to hire is shown by the labor demand…
Q: Cost of Reducing Pollution by 1 Unit $10 $20 $40 ove is tabulated the pollution level in tons for…
A: Pollution permits are regulated allowances that allow producers to generate pollution. Tradable…
Consider a market where the inverse demand function is P = 100 - Q. All firms in the market have a constant marginal cost of $10, and no fixed costs. Compare the
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 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.Market demand for widgets is p = 160 - 2Q. Whether there is just one firm selling widgets or many firms selling widgets, the marginal cost and average cost is 100.Assume there are two firms selling widgets acting as Stackelberg duopolists, with Firm 1 moving first and Firm 2 following. Further assume that Firm 1's marginal profit function at its maximum is Mπ(q1) = 75 - q1, where q1 is the amount of widgets sold by Firm 1. What is the quantity sold for each firm?Options are:Firm 1 sells 0 Firms 2 sells 80Firm 1 sells 25 firm 2 sells 64.5Firm 1 sells 15, Firm 2 sells 30Firm 1 sells 7.5 Firm 2 sells 15From question 12 (Stackelberg duopolists), what is the price of widgets?Options are:1501158565The demand function in a duopoly market is P(Q) = 300-0.3Q, where P is the price and Q is the total quantity demanded. Both companies have the same constant marginal cost, What is the deadweight loss if both companies maximize their profits and they are not allowed to cooperate? (MR is not MC since its not monopoly)
- Tom is a monopolist input supplier to Dic and Harry. Tom's marginal cost is 1. Dic and Harry are duopolists with production function q = x1/2. No firm has fixed costs. The demand for the final product is given by Q = 100 – p. a) Assume Dic and Harry buy the input from Tom at price k. What are their cost functions? b) Find the Cournot equilibrium quantities. c) What price, k, should Tom set? -Cournot Duopoly Suppose that Coca Cola and Pepsi companies compete in quantity sold in a small town. The market demand function for soda in the small town is given by the demand function: Q 10,000 P where Q is the aggregate quantity demanded and P is the price of a can of soda. Let Qp be the number of cans of soda sold by the Pepsi company and Qc be the number sold by the Coca Cola company. Assuming that the marginal cost of producing a can of soda is the same for both companies and equal to 50 cents, find the Nash equilibrium of the soda market in this small town. Illusrate the Nash equilibrium by using the best repsonse functions of both companies. %3DConsider a Cournot duopoly. The market demand function is P = 112-1(q1 + q2), where P is the market price, q1 is the output produced by Firm 1 and q2 is the output produced by Firm 2. The two firms have a constant marginal cost c = 17. What is Firm 2's profit ? Round your answer to the nearest integer (e.g. 50)
- Consider a Cournot duopoly. The market demand function is P = 180 – 2(q₂ + q₂), where P is the market price, q₂ is the output produced by Firm 1 and q₂ is the output produced by Firm 2. The two firms have a constant marginal cost c = 30. What is the total output in this market? Round your answer to the nearest integer (e.g. 50)Consider a Bertrand duopoly where market demand is P(Q)=5-9Q. Each firm faces a marginal cost $2 and no fixed cost. How much is the dead weight loss in a Nash equilibrium?Consider a market that is a Bertrand oligopoly with 5 firms in the market. Each of these firms produce an identical product and each have the same cost function of C(Q) = 80Q. The inverse market demand for this product is P = 2480 – 2Q. How much does EACH firm produce at the equilibrium price?
- Consider a Bertrand duopoly where market demand is P(Q)=107-5Q. Each firm faces a marginal cost $18 and no fixed cost. what is one market price that can occur in a Nash equilibrium?Suppose a market is served by two firms (a duopoly). The market demand function given by P = 1200 - Q_{1} - Q_{2} where Q_{1} is the output produced by firm and Q_{2} is the output produced by firm 2 . Firm cost of production is given by the function C(Q_{t}) = 120Q_{t} and firm 2's cost of production is given by the function C(Q_{2}) = 120Q_{2} The average cost of firm 1 is given by A*C_{1} = 120 and the average cost of firm 2 is given by A*C_{2} = 120 Marginal profit function for firm 1: Delta pi 1 Delta Q 1 equiv1080-2Q 1 -Q 2; (d*pi_{2})/(Delta*Q_{2}) = 1080 - Q_{1} - 2Q_{2} Marginal profit function for firm 2: What will be the equilibrium profit levels earned by the Stackelberg leader firm and the Stackelberg follower firm?Cournot duopolists face a market demand curve given by P = 60 – 1/2Q, where Q is total market demand in units. Each firm can produce output at a constant marginal cost of $15/unit. a) What is the equilibrium price and quantity produced by each firm? b) What if the firm's engaged in Bertrand competition? c) What if one of the firms chose its quantity before its competitor? What is the name for this sort of competition? d) Which of the three forms of competition gives the greatest social surplus?
