Consider two firms that produce identical products in a situation of duopoly. The two firms have the same marginal cost. Which of the following statements is true: O Under Cournot competition, the equilibrium price is lower than the equilibrium price under Bertrand competition O Under Cournot competition, the equilibrium price will be at the same level as the equilibrium price under perfect competition O Under Cournot competition, the equilibrium price will be at the same level as the price under a monopoly O Under Bertrand competition, the equilibrium price will be at the same level as the equilibrium price under perfect competition O The two firms will end up producing different levels of output
Q: Give an example of a positive impact that an international Firm can have on a foreign country's econ...
A: International firm refers to a company which has operations in more than one country. The head quart...
Q: Given the Aggregate Expenditure schedule for Country A below. Calculate national income and net capi...
A: Answer: Y=C+I+G+X-MY=34,141+17,926+9,042+36,872-26,812Y=71,169 Now, Net capital outflow = X - M or ...
Q: Real gross domestic product (GDP) growth equals nominal GDP growth minus inflation. O plus populatio...
A: Nominal GDP measures the money value of all final goods and services produced in an economy during a...
Q: Traditional economy is the social and institutional process through which certain groups of economic...
A: The given statement is true.
Q: The table below gives the growth statistics for the USA in the last 15 years. Growth Rate (% per yea...
A: Given that Output per worker =1.23% Capital stock per worker =0.83% Expected growth of real wages =...
Q: What is economics all about? What is supply and demand? What is exchanges rates?
A: Economics is a social science concerned with the behavior of consumers, producers and various econom...
Q: 4. A profit-maximizing firm has cost function C(Q) = 500 + 10Q + 2002. 4a.What is the firm's margina...
A: (4b) For a perfectly competitive firm, MC above ATC is long-run supply curve. C = 500 + 10Q + 20Q2 ...
Q: Identify and discuss the Technological environment of China. You are deciding to run a startup busin...
A:
Q: The government of Rohan has has recently increased the amount of taxes that it collects from its cit...
A: The demand curve in loanable funds market represents demand by businesses for investments and borr...
Q: The price p (in dollars) and the quantity q sold of a certain product obey the demand equation q=...
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any...
Q: 13. The inelasticity of demand for gasoline in the short run makes no theoretical sense. b. makes se...
A: Elasticity measures the responsiveness of quantity demanded to changes in price level.
Q: 4. A profit-maximizing firm has cost function C(Q) = 500 + 10Q + 200. 4a.What is the firm's marginal...
A: Please find the answer below.
Q: Suppose the economy has 100 units each of goods X and Y and the utility functions of the (only) 2 in...
A: The initial endowments are not effcient and improvement is possible as explained below.
Q: In the specific factor model with labour as a mobile factor, introducing trade lowers the...
A: Specific factor model The specific factor model assesses the real-world occurrence of certain produc...
Q: How does covered interest arbitrage affect the exchange rates
A: By understanding the interest arbitrage and bringing in the interest arbitraging interest rate diffe...
Q: 10. According to Simon Kuznets, a The main force behind economic growth is increases in the quantity...
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the exac...
Q: Consider two developed and developing countries, the population growth rate of developed countries i...
A: Given that; The population growth rate of developed countries is 2 % per year Saving rate = 30% The ...
Q: Is this game dominance solvable? Why? Why not? If it is, please find the Nash equilibrium obtained t...
A:
Q: Complete the following cash flow analysis questions: 5) Convert the following cash flows to a unifor...
A: Below is the given values: Interest rate, i = 3% Years, n = 3
Q: According to the National Baseball Hall of Fame, at the end of 1979, the pitcher Nolan Ryan signed w...
A: Consumer Price Index The Consumer Price Index is an instrument by which we can measure the inflation...
Q: Assuming that there is no government spending or trade, an economy’s GDP is the sum of domestic cons...
A: In the case of a closed economy, where there is no government. The consumption function is given by ...
Q: If a bank has $32 million in deposits and the required reserve ratio is 4 percent, the bank's requir...
A: Required reserve ratio is the minimum requirement of percentage of deposits that banks have to hold ...
Q: Q TR TC MR MC S0 $10 1 $20 $15 $20 $5 $40 $25 $20 $10 3 $60 $40 $20 $15 4 $80 $60 $20 $20 5. $100 $8...
A: The producer will produce in order to maximise its profits. No producer will limit this goal. And th...
Q: Describe the concept of demographic transition
A: Demographic Transition takes into account two characteristics of demographics i.e. Birth rates and d...
Q: Which of the following data would be analyzed to determine whether any shift in the MPI has occurred...
A: The MPI is a metric that evaluates initiated utilization, the idea that the expansion in private con...
Q: na monopolistically competitive market, as new firms continue to enter, the demand that a ypical fir...
A: In monopolistic competitive market, there is free entry and exit of firms in the long run.
Q: JA) term given to a fall in a company's stock price. B) name given to how accountants calculate the ...
A: Economic depreciation is a measure of an asset's market value depreciating over time as a result of ...
Q: Eyeglasslux is a single-price monopolist in the eye-glass frame market. It faces a Market demand giv...
A: Q=421-2P2P=421-QP=421-Q2P=210.5-Q2Now,TR=P*QTR=(210.5-Q2)QTR=210.5Q-Q22Thus,MR=∂TR∂QMR=210.5-Q
Q: Immediately after an ice storm brought down power lines throughout the region, hardware stores were ...
A: In a free-market economy, the resources are allocated based on the interaction of market forces such...
Q: The equilibrium quantity of labor increases and the equilibrium wage decreases when: A) labor supply...
A: Labor supply is the number of people available for work.
Q: What is frictional unemployment?
A: Unemployment is when the employable person is actively looking for a job but cannot find a suitable ...
Q: Lauren runs a chili restaurant in San Francisco. Her total revenue last year was $110,000. The rent ...
A: "Implicit costs refer to the opportunity costs i.e. the cost of resources which the business owns th...
Q: At present, it is op- $504,000. Annual fi- $0.392 per unit of pr а. What is the fir b. At what volun
A: Here, Present capacity is equal to Total revenue Profit = total revenue- total cost All parts solve...
Q: Consider two developed and developing countries, the population growth rate of developed countries i...
A: At a steady-state, capital per worker is constant, that is investment is a breakeven investment.
Q: 2. Consider an insurance salesperson who plans to visit 10 randomly selected families today. The out...
A: Answer) Given : n = 10 , total number of random selected families p = probability if the ...
Q: Negative Externalities Exercise 1 (Algo) Texarkana Electric Company burns coal to heat the water tha...
A: "A negative externality measures the difference between the private cost of an economic action and t...
Q: Eyeglasslux is a single-price monopolist in the eye-glass frame market. It faces a Market demand giv...
A: In the perfectly competitive market optimal condition is at that point where price is equal to margi...
Q: Assume Australia is an importer of sofas and there are no trade restrictions. Australian consumers ...
A: The difference between the price consumers are willing to pay and the market price is known as consu...
Q: Consider two developed and developing countries, the population growth rate of developed countries i...
A: At a steady-state, capital per worker is constant, that is investment is a breakeven investment.
Q: CAPITAL BUDGETING can be most accurately defined as which of the following? O A. The process during ...
A: Capital budgeting is a process that is used by businesses for the evaluation of major projects or in...
Q: Suppose that the price of apples increases by 10%. Within a short amount of time, apple producers ar...
A: Elasticity of supply helps the producers in determining the production levels. It also explains how ...
Q: Question 24 One of the roles of the Fed is to Collect taxes Propose the budget Balance the federal b...
A:
Q: The cost that a firm pays in money to hire a resource is referred to as cost. A) a minimized B) an e...
A: Business can be of various types and forms. For example in radio business, there is radio production...
Q: Sven runs a daycare for some of the neighborhood children, where he earns $300/day in revenue. He ru...
A: Here, some information about revenue band cost related to Sven's daycare job.
Q: Determine the exact simple interest of Php 25,000 for the period from December 27, 2001 to March 23,...
A: Given Value of money at December 27 2001 P = 25000 Rate of interest r= 10% simple interest. We have...
Q: 4. A profit-maximizing firm has cost function C(Q) = 500 + 10Q + 200?. 4a.What is the firm's margina...
A: In the mentioned question we have to calculate the marginal cost and the long-run supply function.
Q: Why is scientific literacy is important? Answer can be related to decision-making, economic producti...
A: There is a type of government which is known as communist type of government. In this type of govern...
Q: Consider Figure 1 below: Supply 3,000 2,000 1,000 600 Demand 100 300 600 Q Figure 1: Rent Control Su...
A: Due to the rent control policy, change in SS can be measured through the following method: ∆SS = 12(...
Q: You are the buyer for The Shoe Outlet. You are looking for a line of men’s shoes to retail for $79.9...
A: Let selling price =100 then, Profit =45 So, Cost = selling price - profit =100-45 =55
Q: 3 Which of the following statements is /are incorrect in explaining the difference between M1, M2, ...
A: In an economy, the measurement of the money supply is M1, M2, and M3. These are also known as money ...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Problem 1. HHI in the Bertrand Triopoly Equilibrium It's a Bertrand Triopoly - hence we know there are 3 firms in the industry-in-question, who competes in "price". The inverse demand functions for Firm 1, 2, and 3 are as follows: q1 = 40 - 1.5p1 +0.5p2 +p3 q2 = 40 + 1.5p1 - 3p2+p3 q3 = 40 + 2p1 + 1.5p2 - 4p3 For each firm, the marginal cost of production is $2.50/unit produced and sold. Apparently, the firms' products are differentiated. You cannot impose symmetry across firms. Therefore, please solve each firm's profit maximization problem, impose equilibrium, and solve for each firm's "action" in equilibrium. After that, please calculate the Herfindahl- Hirschman Index (HHI) in the industry in equilibrium.Once more, please consider a market with eight producers that produce a total of 30,000 units. Their output is broken down below: Firm's Firm Output One 7400 Two 1800 Three 4100 Four 5200 Five 1400 Six 2800 Seven 6600 Eight 700 According to our lecture, this industry likely to be an oligopoly because is not; a small number of firms produce a large amount of the output O is; a small number of firms produce a large amount of the output O is not; production is spread out among relatively many firms is; production is spread out among relatively many firmsWhich of the following is true of a monopolistically competitive firm in long run equilibrium? Price is greater than marginal cost and marginal revenue is equal to average total cost Price is greater than marginal revenue and marginal cost is equal to average total cost Price is greater than marginal revenue and marginal cost is greater than average total cost O Marginal revenue is equal to marginal cost and price is equal to average total cost Marginal revenue is greater than marginal cost and price is equal to average total cost
- QUESTION 5 Consider the Cournot model of quantity competition. In the Nash equilibrium, firms always end up producing more than a monopolist would produce. O True O FalseRefer to the figure at right. Two firms operating in the same market must choose between a collude price and a cheat price. Firm A's profit is listed before the comma, B's outcome after the comma. If each firm tries to choose a price that is best for it, regardless of the other firm's price, which of these statements is correct? O A. Both firms should charge a cheat price. OB. Firm A should charge the collude price; Firm B should charge a cheat price. C. D. Both firms should charge a collude price. Firm A should charge a cheat price; Firm B should charge a collude price. Cheat Price Firm A Firm B Cheat Price Collude Price Collude Price 18, 18 6,30 30,6 24, 24Which of the following is an assumption of the theory of oligopoly? O Firms produce and sell either homogeneous or differentiated products. O There are no barriers to entry. O a and c There are many sellers and many buyers.
- Help me pleaseConsider two Cournot oligopolists, firm 1 and firm 2, in a homogenous product market. The market demand is P = 100 - 3Q and each firm has a constant marginal cost MC=10. The market price of equilibrium and total quantity in the market is: Select one: O a. P* 30 and Q* = 20 O b. P* 40 and Q* = 20 ○ C. P* 40 and Q* = 30 d. P20 and Q* = 30bok rint An oligopoly producing a homogeneous product is comprised of three firms that act like a cartel. Assume that these three firms have identical cost schedules. Assume also that if any one of these firms sets a price for the product, the other two firms charge the same price. As long as they all charge the same price they will share the market equally; and the quantity demanded of each will be the same. Below is the total-cost schedule of one of these firms and the demand schedule that confronts it when the other firms charge the same price as this firm. Complete the marginal-cost and marginal- revenue schedules facing the firm. erences Mc Graw Hill Output Total cost Marginal cost Price Quantity demanded Marginal revenue 0 1 23456 7 8 $0 180 300 480 720 1,020 1,380 1,800 2,280 Short Anewor LA JUL 26 $780 720 660 600 540 480 420 360 Toolbar navigation (a) What price would be charged, what output would be produced, and what profit would be made by this firm? (b) If the firms…
- Assume firms' marginal and average costs are constant and equal to c and that inverse market demand is given by P = a - bQ where a, b > 0. Suppose now the market is served by k firms that choose quantities for their identical products simultaneously. Calculate: i. ii. iii. iv. The Nash equilibrium quantities for the Cournot firms as functions of k. 2 Market output and price as a function of k Firm profit as a function of k Using your answers in i, ii, iii and iv, describe what happen to firm output, market output, market price and firm profit as the number of firms increases.The graph shows the demand curve for cars in 2017. Suppose that the least-possible cost of producing a car is $10,000 and that the efficient scale is 10,000 cars a month. Draw the average total cost curve for a car manufacturer in 2017. Label it. The graph shows that the market for cars is a natural oligopoly with O A. 1 firm OB. 2 firms OC. 3 firms OD. 4 firms 50,000- 40,000- 30,000- 20,000- 10,000- 0- Price (dollars per car) 0 D 30 Quantity (thousands of cars per month) >>> Draw only the objects specified in the question. 50 QAssume firms' marginal and average costs are constant and equal to c and that inverse market demand is given by P = a - bQ where a, b > 0. Suppose now the market is served by 2 firms that choose quantities for their identical products simultaneously. Calculate: i. ii. iii. iv. The Nash equilibrium prices for Cournot duopolists Firm output Market out Firm profit