Consider a Stackelberg duopoly. Firm 1 chooses output q1. Firm 2 observes q1 and then chooses g2. In a subgame perfect equilibriuma. Neither firm plays a best response to the other firm's quantityO b. Firm 1 plays a best response to 92, and Firm 2 plays a best response to q1C. Firm 1 plays a best response to q2, but Firm 2 does not generally play a best response to q1O d. Firm 2 plays a best response to q1, but Firm 1 does not generally play a best response to 92

B.Firm 1 place paste response to q2, and firm to place best response to q1

. Neither firm plays a best response to the other firm's quantity . Firm 1 plays a best response to q2. and Firm 2 plays a best response to Firm 1 plays a best response to q2. but Firm 2 does not generally play a d. Firm 2 plays a best response to 91.- but Firm 1 does not generally play a

. Neither firm plays a best response to the other firm's quantity . Firm 1 plays a best response to q2. and Firm 2 plays a best response to Firm 1 plays a best response to q2. but Firm 2 does not generally play a d. Firm 2 plays a best response to 91.- but Firm 1 does not generally play a

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The market for soccer balls is composed by 4 firms. Consider the following information on the quatity supplied at different prices: When the price for a ball is $25, the supply of firm 1 is 5, the supply of firm 2 is 2, the supply of firm 3 is 3, and the supply of firm 4 is 0. When the price for a ball is $50, the supply of firm 1 is 7, the supply of firm 2 is 5, the supply of firm 3 is 5, and the supply of firm 4 is 3. When the price for a ball is $75, the supply of firm 1 is 9, the supply of firm 2 is 8, the supply of firm 3 is 7, and the supply of firm 4 is 6. When the price for a ball is $100, the supply of firm 1 is 11, the supply of firm 2 is 11, the supply of firm 3 is 10, and the supply of firm 4 is 9. When the price is $50, the market supply of soccer balls is: a. 20 b. 10 c. 30 d. 41
SECTION A Answer All Questions 1. Which of the following questions is a type that tools of econometrics are meant to answer? A. If goods A and B are substitutes and the price of good A increases by KSH 10, by how much will the quantity demanded of good B change by? B. If goods A and B are substitutes and the price of good A increases, how will this affect the demand for good B? C. If an income increase causes the sales of good A to fall, everything else held constant, what type of good is good A? D. Everything else the same, would the price of good A be higher in a competitive industry or a monopolistic industry? 2. Consider the model Qª = ƒ (P, P³,Pº, INC) where Qªis quantity demanded of a bar soap per month, P is the price per bar of soap, Ps is the price of substitutes, P is the price of complements, and INC is monthly income. This equation represents A. a non-linear model B. an economic model C. an econometric model D. an interval forecast
. Individual and market demand Suppose that Eric and Ginny are the only consumers of pizza slices in a particular market. The following table shows their weekly demand schedules: Price Eric’s Quantity Demanded Ginny’s Quantity Demanded (Dollars per slice) (Slices) (Slices) 1 6 16 2 3 12 3 2 8 4 1 6 5 0 4 On the following graph, plot Eric’s demand for pizza slices using the green points (triangle symbol). Next, plot Ginny’s demand for pizza slices using the purple points (diamond symbol). Finally, plot the market demand for pizza slices using the blue points (circle symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right. ( the graph has attached as an image)
4) Firm A sells products x and z; the first, at a price of $ 30, sells 200 units and the well z manages to sell 400 units. To increase his sales, he decides to lower the price from x to $ 20, but this variation produces a decrease in the sale of z to 80 units: a) Calculate the cross elasticity b) What kinds of goods are x and z between them? Explain why. c) Give 2 examples of these types of goods.
show on the graph where is the opportunity cost is measured
Veer
A Moving to another question will save this response. Question 8 Which of the following statements about a sales-oriented company is FALSE? O a. "We are interested in innovative, unique ways of advertising our services to customers." b. "We are constantly asking customers for ways to improve our products." OC. None of them O d. "We usually hire aggressive, goal-oriented sales people." e. "We are interested in new coupon campaigns to promote our products to customers."
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2) Suppose that there are two types of consumers. "Type 1" consists of 10 identical consumers who each have the following individual demand curve: P=40-2Q. "Type 2" consists of 50 identical consumers who each have the following individual demand curve: P = 73 - 5Qd². a. Compute the market demand curve, where P is a function of Q, where Q- Qar+Qaz. b. Suppose the supply of this good is perfectly inelastic at a quantity of Q. = 30. Compute the market equilibrium price of this good.
6. Individual and market supply Suppose that Paolo and Sharon are the only suppliers of ice cream cones in a particular market. The following table shows their monthly supply schedules: Price (Dollars per cone) PRICE (Dollars per cone) 6 5 2 0 1 0 2 3 4 5 Paolo's Quantity Supplied (Cones) 0 On the following graph, plot Paolo's supply of ice cream cones using the green points (triangle symbol). Next, plot Sharon's supply of ice cream using the purple points (diamond symbol). Finally, plot the market supply of ice cream cones using the orange points (square symbol). (?) 4 8 4 12 6 7 8 18 QUANTITY (Cones) Sharon's Quantity Supplied (Cones) 5 9 20 12 24 14 15 Paolo's Supply Sharon's Supply E Market Supply es Now, suppose that Sharon's twin brother, who has an identical cost structure and ice cream cones supply curve as Sharon, moves to the area, adding another producer to this market. As a result, there will be a the market supply curve because there will be a change in quantity supplied
Imagine that you are buying Lego bricks. The number of bricks you are willing to buy is determined by the market price of bricks. Your willingness to buy is defined by the following: You are willing to buy 1 brick if the price is at or below $30 You are willing to buy 2 bricks if the price is at or below $25 You are willing to buy 3 bricks if the price is at or below $20 You are willing to buy 4 bricks if the price is at or below $15 What is your consumer surplus if the market price of bricks is $23? Assume that there are enough sellers available to sell as many as you want to buy at that price. Enter the number below. Do not include the “$” sign.
please solve 1-2-3-4