If two identical firms with marginal cost 5 and demand curve P=70-20 compete using the Coumot model, find price Select one Oa 4167. Ob. 17 66 OC4 Od194
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- MN 00 25 Price %24 Question 42 of 60 > For the monopolistically competitive firm in the following figure, the profit-maximizing price is and the quantity is MC ATC 20. 16 Demand MR 40 Quantity O $20: 25 O $16: 25 O $32; 25 O $20; 40 10:55 PM 74 F 12/12/2021 Ins prt sc delete home 12 Oy 114 dn 6d pue 144 91 & backspace wnu lock 5. 7. 4. home 6d T. enter H. pause ↑ shift 2. LE ctrl alt SutMN 00 工 25 Price %24 For the monopolistically competitive firm in the following figure, the profit-maximizing price is and the quantity is MC ATC 32 20 Demand MR Quantity O $20; 25 O $16; 25 O $32; 25 O $20; 40 10:12 PM 75°F ENG earch 12/12/2021 f12 Ins prt sc delete home 61 pua f5 dn 6d f4 84 114 144 米 backspace lock 4. 5. R. home enter 4. K. pause ↑ shift end 2. C. alt ctrlIf two identical firms with marginal cost 5 and demand curve P=70-20 compete using the Coumot model, find price Select one. Oa 4 167 Ob 17 66 OC4 Od 194
- AVC, ATC,MC 110 80 76 " 50 40 30 29 18 MC ATC 1234567H0 11 12 13 14 Output per period O a Loss of $90 O b. Profit of $180 O c. 50 Od. Profit of $6300 The Competitive Industry and Firm Refer to the figure above to answer this question for a representative firm in a perfectly competitive market. Suppose that the market price is $70. What is the firm's maximum profit (or minimum loss)?7. A car manufacturer builds both left-hand and right-hand drive cars. It estimates that its costs and the demand faced in each of these respective markets can be modelled by the functions below P1 = 520 – 3Q1 P, = 720 – 4Q2 - TC = 100Q1 + 120Q2 + 4Q1Q2 What is the maximum profit the firm could make? O 24300 O 24800 25300 25800 26500 O00001. Suppose you are the economic adviser ofa company producing three brands of mobile pnones;Nokia 10, Samsung X and iPhone 7. Suppose further that, your company currently sells 120units of iPhone Z at e800 per unit, 150 units of Samsung X at e800 per unit and 200 units ofNokia 10 at e100 per unit, but in a bid to maximize profit, the company's managing directorproposes an increase in price of Samsung X from e800 to e1000 per unit for which quantitydemanded is anticipated to fall from 150 to 100 units; iPhone Z from e800 to e 1200 per unitfor which quantity demanded is anticipated to fall from 120 to 100 units; and Nokia 10 from100 to 200 per unit for which quantity demanded is expected to fall from 200 to 100 unitsUsing the mid-polint formula. compute the price elasticity of demand for each brand.From your answer in i, what is the type and economic interpretatiom of each brand'sii.value of elasticity.2. Briefly explain any three key features of a Perfect Competitive and a Monopolistic…
- Figure 9.3 - Price or Cost 32199 11 10 6 3 2 H units. G O 40 units. O 60 units. O 80 units. 20 40 B 8 H MC C 60 Quantity ATC MR 80 100 Demand If the firm in Figure 9.3 used marginal cost pricing to determine its output and price. the output produced would be: 1203. Suppose Microsoft is selling the two products to the individuals below with their willingness to pay for each item as in the table. Suppose the costs of producing each item is $10 for both products. Find the maximum profit of Microsoft if it can sell with either unit pricing, pure or mixed bundle prices for these items. TIT Word Processor Spreadsheet Alice 20 10 Ben 40 30 Chris 80 70 Daniel 60 50Price 2001 110 80 65 20 O $2,025 O $4,050 $8,100 Du O $3,600 Dominant Firm Market DR 45 60 MRR 90 In equilibrium, what will the dominant firm's profit be? 110 135 Quantity SF MC 200
- Table 17-4 Only two firms, ABC and XYZ, sell a particular product. The following table shows the demand curve for their product. Each firm has the same constant marginal cost of $8 and zero fixed cost. O a. $5 O b. $15 Price (Dollars per unit) O c. $20 O d. $10 28 26 24 22 20 18 16 14 12 10 8 6 4 2 0 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 Refer to Table 17-4. How much less do each of these firms earn in the Nash equilibrium than if they jointly maximize profits? Quantity Demanded (Units) Total Revenue (Dollars) 0 130 240 330 400 450 480 490 480 450 400 330 240 130 0Consider the diagram at the right depicting the revenue and cost conditions faced by a monopolistically competitive firm. 40- What are the total revenues experienced by this firm? $ 2800 35- MC What are the total costs experienced by this firm? S 2800 ATC What are the economic profits experienced by this firm? S0. This firm is more likely in long -run equilibrium because 22 O A. economic profits will stimulate entry (which is a long-run change). O B. normal profits will stimulate entry (which is a long-run change). 18 MR O C. normal profits will not stimulate entry (which is a long-run change). D 15- O D. None of the above are true. 100 160 10- 40 80 120 160 200' 240' 280 Quantity (units per day) Revenues and Costs ($ per unit)A large share of the world supply of diamondscomes from Russia and South Africa. Suppose thatthe marginal cost of mining diamonds is constant at$1,000 per diamond and the demand for diamonds isdescribed by the following schedule:Price Quantity$8,000 5,000 diamonds7,000 6,0006,000 7,0005,000 8,0004,000 9,0003,000 10,0002,000 11,0001,000 12,000a. If there were many suppliers of diamonds, whatwould be the price and quantity?b. If there were only one supplier of diamonds, whatwould be the price and quantity?c. If Russia and South Africa formed a cartel, whatwould be the price and quantity? If the countriessplit the market evenly, what would be SouthAfrica’s production and profit? What wouldhappen to South Africa’s profit if it increased itsproduction by 1,000 while Russia stuck to thecartel agreement?d. Use your answers to part (c) to explain why cartelagreements are often not successful.