An Australian firm and a US firm produce a homogeneous good that is sold only in Japan. The marginal cost of producing the good is constant and equal to 30 in both countries. The demand curve for the good in Japan is: P = 120-Q where Q = QA +QUS represents the sum of the quantities produced by the Australian and the US firms, respectively. (b) Assume the Australian firm can commit to an output before the US firm. Solve for the Stackelberg Equilibrium price, sales and profits of each firm in Japan. Price profit ALIS? ,output_US2 profit_US2 ,output_AUS2
Q: If marginal cost exceeds marginal revenue then the perfectly competitive firm will Question 5…
A: In a perfect competition, A firm will produce the optimal output. Optimal output is where Price is…
Q: What are the objects of public debt?
A: Government commitments, particularly those indicated by securities, to pay specific sums to holders…
Q: B4: Interpret these Graphs: Name the top 2 items causing inflation per grap Inflation continues to…
A: When prices for goods and services on the market noticeably increase, a process known as inflation…
Q: The curve that shows average revenue is the supply demand Onone of the above O marginal-revenue…
A: Revenue refers to the income earned by the firm by selling a certain quantity of its output. Average…
Q: The discount rate is the interest rate the Fed charges on loans of reserves to banks. The federal…
A: In the federal reserve system, discount rate I the rate at which Fed lend money to commercial banks,…
Q: Consider the following figure. In this economy, the Solow growth rate is 1% per year: Tat (1) X%…
A: The quantity theory of money provides description on how price changes in relation to the supply of…
Q: Concept VP of benefits, $ VA of no benefits, $ Initial cost, $ Operation cost and mantenaince by…
A: The cost-benefit ratio provides the cost analyses for decision marking. It states whether an…
Q: Consider a competitive industry with a market demand curve of P = 121 – Q, where P is market price…
A: In a perfectly competitive industry, there are large numbers of firms and firms are price takers,…
Q: Original Question: 1. Assume that net investment at time t is given by I (t) = 12t¹/2. (a) Find the…
A:
Q: Combination Cinnamon metric tons (X axis) Nutmeg metric tons (Y axis) A 7,000 0 B 6,000…
A: The opportunity cost of production of a good is the sacrifice of production of another good which…
Q: The fixed-capital investment for an existing chemical plant is $20 million. Annual property taxes…
A:
Q: Suppose the marginal external damage due to pollution varies with output according to the function,…
A: Externalities: When a firm produces a good sometimes it creates cost or benefits for other firms. If…
Q: How much will Cyrus receive 5 years after his last deposit if he deposited 1,092 Php annually for 10…
A: depositing 1092Php amount yearly for 10 years is the example of annuity or an ordinary annuity.
Q: For each of the following definitions, select the correct term from the dropdown menu in the table.…
A: In banking with fractional reserves, the bank is only obligated to keep a portion of customer…
Q: A seller has an indivisible asset to sell. Her reservation value for the asset is s, which she knows…
A: The reservation value for a seller is the minimum price that a seller wishes to receive for the…
Q: the forms of wealth that are subjected to zakat
A: Zakat is an Islamic Financial term that refers to a mandatory obligation on a follower of Islam to…
Q: B1: Interpret these Graphs: Name the top 2 items causing inflation per graph. Inflation continues to…
A: Inflation is a phenomenon that occurs when there is a considerate rise in the price of the products…
Q: What is the critical evaluation of comparative cost theory?
A: The transfer of capital, technology, goods, and services between nations is referred to as…
Q: Consider a consumer with well-behaved and strictly convex preferences in an economy with just two…
A: Income effect refers to the change in the consumption of the good due to change in the purchasing…
Q: Which statement best describes how advertising can affect the demand curve for a firm with market…
A: An expenditure on advertising increases the demand for the product by providing relevant features of…
Q: Bank loan with 850000 SEK to buy a house. Published official rate is 5.39% Current year inflation…
A:
Q: What are the methods of exchange control?
A: Exchange controls are government-imposed prohibitions and restrictions on private transactions in…
Q: GEORGE TOWN: Fresh chicken at wet markets here now cost between RM10.50 and RM12.00 per kg. The…
A: Given, Chicken in the market cost between RM10.50 and RM 12 per kgPoultry sellers receive their…
Q: 4. This question combines quantity theory of money and AD curve. Suppose there are two countries:…
A: The quantity theory of money (QTM) states that the money supply has a directly proportional effect…
Q: What is the opportunity cost (amount & item) of increasing production from 27,000 tons of coffee to…
A: Opportunity cost refers to the foregone Opportunity by producing or consuming something else. Since…
Q: What are the principles of Tax-incidence?
A: Tax incidence refers to the situation when the tax burden is borne by the consumers or the producers…
Q: 4. A semiconductor manufacturer has been ordered by the city to stop discharging untreated, acidic…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Globalization makes new forms of consumption possible, but the effects of globalization on an…
A: As a result of technology, cross-border trade in products and services, and flows of capital,…
Q: Russia trades chocolate with France, where it is a staple. The government of Russia places a price…
A: A price floor is a strategy for controlling prices. A minimum price level is set for the market by…
Q: 7.If a government policy or other external force moves a competitive market away from the…
A: Government intervention is defined as any action made by the government that has an impact on the…
Q: Consider a two-person endowment economy characterized by the Edgeworth Box below: a. b. C. X2 OA A E…
A: As we know that in different market structure resources allocation and distribution are different…
Q: define M1 and how the FED can affect the money supply through interest rates can you explain why…
A: The central bank F is controlling the money supply and the interest level in the money market. The…
Q: Economies of Scale and Scope. Explain briefly how economies of scale and scope can be developed in…
A: The total cost (TC)is the aggregate expenditure on production of the goods. The per unit cost of…
Q: If firms are earning positive profits in the long run new firms will enter and drive the market…
A: When talking about the long-run profitability of a firm, it can be said that a firm will earn…
Q: The value of _______ includes the following alternative meanings: the ability to act without…
A: Value is the appraised, monetary, or material worth of a good, service, or asset. Numerous ideas are…
Q: 5. Assuming the same wages and technology as before - how much does it cost the firm to produce q =…
A: ISO-Quant: Iso -Quant shows different combination of capital and labour such that each combination…
Q: Suppose in an economy PAE = 2500+.75Y-15000r. If target inflation is 2% and potential output: is…
A: Given information: PAE = 2500 + 0.75Y - 15000r Where PAE is planned aggregate expenditure Y is…
Q: Give typed explanation only The difference between the present worth of the cash flows is referred…
A: Cash flows refers to the inflow or the outflow of the cash from either a project or different other…
Q: Suppose the marginal revenue of a perfectly competitve firm is $10 and its marginal cost is $18 at…
A: In perfect competition , A firm should produce where P = MC P is the price of good in the market.…
Q: The Fed sells $150 million of bonds to the public and also raises the required reserve ratio. What…
A: When Fed sells out the bonds in the market , this is the open market operation for raising fund.…
Q: 40% on income up to $25,000 30% on income between $25,000 and $34,000 25% on income between $34,000…
A: Tax is imposed by the government to earn revenue for spending in an economy. Taxes can be classified…
Q: part e please
A: Given information Utility function : U = 3L + P Wage rate (w)= 25 per hour Price of pizza (P) =…
Q: A husband want to save money 450000 SR, to prepare for a gift for his girlfriend , he plan to bring…
A:
Q: When in US you notice that prices are posted in dollars. This best illustrates money's function a…
A: Money is generally accepted medium of exchange which helps in the purchase of goods and services.
Q: Aisha is considering how to allocate the next 6 hours of her free time. She could choose between…
A: Consumer Aisha (A) can allocate her time between leisure (L) and doing house chores. Consumer A has…
Q: From the following data relating to a form call Mark calculate net value added at FC. Subsidy = 40…
A: As the net value of the output produced in an economy, the net value added at factor cost of a…
Q: What is the opportunity cost (amount & item) of the first 8,000 tons of bananas produced?…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: 3. The wage rate is £10 and the capital rate is £20. If a firm was spending £c, show what…
A: An isocost line is the locus of input combinations for a particular cost outlay of the firm. A firm…
Q: In the Plantation economy model, the Golden Age exhibited which one of the following…
A: The Plantation Economy Model is defined as a model which is based on the mass production of…
Q: What are the Principles of Public Debt Management?
A: Accurately calculating the government's debt while maintaining effective oversight and control are…
Step by step
Solved in 5 steps
- Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) b. consider two cases: (i) Company is effectively able to price discriminate in thetwo markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging thesameprice in the two markets what are the profit maximizing levels of price,output, and the total profits? c. Analyze, with graphs, the two alternative pricing strategies available to the company.Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) (i) Company is effectively able to price discriminate in the two markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging the same price in the two markets what are the profit maximizing levels of price, output, and the total profits? (iii) Analyze, with graphs, the two alternative pricing strategies available to the company.Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) a. Determine the company’s total profit function. Also, (i) What are the profit maximizing levels of price and output for the two markets? (ii) Calculate the marginal revenues in each market.
- Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) Determine the company’s total profit function. Also, (i) What are the profit maximizing levels of price and output for the two markets? (ii) Calculate the marginal revenues in each market. Now consider two cases: (i) Company is effectively able to price discriminate in thetwo markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging thesameprice in the two markets what are the profit maximizing levels of price,output, and the total profits?…Question Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) Now consider two cases (i) Company is effectively able to price discriminate in the two markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging the same price in the two markets what are the profit maximizing levels of price, output, and the total profits? c. Analyze, with graphs, the two alternative pricing strategies…Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) Required. Determine the company’s total profit function. Also, (i) What are the profit maximizing levels of price and output for the two markets? (ii) Calculate the marginal revenues in each market.? 2. Now consider two cases: (i) Company is effectively able to price discriminate in the two markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging thesameprice in the two markets what are the profit…
- A local company is planning to manufacture and market a four-slice toaster. For this toaster, the research department’s estimates are aweekly demand of 300 toasters at a price of $25 per toaster and a weekly demand of 400 toasters at a price of $20. The financial department’s estimates are fixed weekly costs of$5,000 and variable costs of $5 per toaster. a) Assume that the relationship between price ? and demand ? is linear. Use the research department’s estimates to express ? as a function of ? and determine the domain of the function. b) Using your knowledge from Finite Math, determine the Revenue function in terms of ?. c) Determine the Marginal Revenue at 2 different production levels for example 250 and 500 units. Interpret these results. (HINT: Consider what a positive or negative first derivative implies) d) Assume that the cost function is linear. Use the financial department’s estimates to express the cost function interms of ?. e) Determinethe Marginal costand interpret the…James mainly sells confectionery items, newspapers, magazines and cigarettes in his convenience store. Noting his small business is not thriving, he thought of selling hot pies and rolls too. Suppose the total cost function for rolls and pies is, TC = 900 + 50Q, Q = Q1 + Q2 Where Q1 and Q2denote the quantities of rolls and pies respectfully. If P1 and P2 denote the corresponding prices, the inverse demand equations are. Q1 = 70 - P1 and 0.5Q2 = 100 - P2 a)If James decides to make a total of 48 rolls and pies per day and charges different prices as above (that is, P1 ≠ P2 ), how many of rolls and pies each should he make in order to maximize the profit of a particular day? Estimate and interpret the Lagrange Multiplier λ [note: assume second-order conditions are satisfied]. b)Using your knowledge of input-output tables, explain which components of the economy will be affected if all convenience stores, including James’, closed down for three months due to the COVID-19. What would…Marginal cost is given by the function :- 2Q2 - 130 And the equilibrium quantity is 10 so calculate the marginal cost.
- Distinguish between technical efficiency and economic efficiencySuppose that the marginal revenue fron selling sandwiches is constant at $9 per sandwich. Use the folllowing cost function to determane the optimal number of sandwiches to produce/sell. TC=Q2A7 You are the manager of a bakery that produces and packages gourmet muffins, and you currently sell muffins in packages of 3. A consultant’s report has estimated the (inverse) demand of a typical consumer to: P = 3 − 0.5Q If your cost of producing bran muffins is C(Q) = Q: (a) What is the marginal cost of muffins? (b) Draw the demand and marginal cost on a diagram. (c) Determine the optimal number of muffins to sell in a single package. (d) What price should the firm charge for each park?