consider a market for two differentiated products. demand for good 1 is d1 = 1-p1 + 1/4p2 and demand for second is d2 = 1-p2 + 1/4p1 where p1 and p2 are prices of the goods. Suppose firm 1 produces good 1 and firm 2 produces good 2. All production costs are sunk, that is, firms supply at zero production cost. Assume that firms compete in prices. (a) Calculate the diversion ratio. b) Derive the reaction function of each firm and calculate the Nash equilibrium in prices.

Find the consumer and producer surpluses by using the demand and supply functions, where p is the price (in dollars) and x is the number of units (in millions).   Demand Function: p = 1220 − 21x Supply Function: p = 40x

The competitive market for Botox procedures is characterized by the following supply and demand curves: QS = −2,000 + 10P and QD = 24,000 −16P where P is the price of the procedure and QS is the quantity supplied and QD is the quantity demanded. a: Solve for the equilibrium quantity and price in the Botox market.b: Neatly graph the market for Botox procedures, showing the vertical intercepts of the supplyand demand curves. Show the equilibrium.

The market demand function for corn is Qd = 19 - 5P The market supply function is QS = 5P - 4 both quantities measured in billions of bushels per year. Instructions: Round all quantities to the nearest whole number and prices to 2 decimal places. a. What is consumer surplus at the competitive market equilibrium? b. What is producer surplus at the competitive market equilibrium? c. What is aggregate surplus at this equilibrium?

3. Consider a market for a good with the following demand function: Q = 120-2p where is quantity demanded and p is the price. Suppose the cost of producing Q units of the good be: C(Q) = Q² (a) If this market is perfectly competitive, what will be market price (pc) of the good and total output, (Qc).

New Zealand possums produce the highest quality fur, due to the large pelts per body size. Demand for New Zealand possums’ products has risen dramatically. This is partly a result of the conservation benefits of harvesting New Zealand possums. This has made the product seem more environment friendly than other fur products and boosted sales to concerned consumers. Assume that the possums market satisfies all the attributes of a competitive market. Further assume that high grade possum furs are the most expensive input into the possum fur production function. 1. Use a graph of the market for possum fur to demonstrate the effect of its environmentally friendly status on the market equilibrium. 2. Graph the reaction of an individual incumbent firm to the increase in market demand. In your graph, identify the firm’s revenue and cost structures. 3. What would you predict would happen to long-run industry supply if the price of possum fur increased as possum culling increased their…

Please help me with this question correctly. Thank you

Suppose the demand function for a product is given by 5. producer's/ Consumer's surplus: p= 64-x2 and the supply function is given by p x2 + 2x + 24 where p is the unit price and x is the number of units. a) Find the equilibrium point (x,p) b) Compute the producer's surplus at market equilibrium. c) Compute the consumer's surplus at market equilibrium.

P(Q) (or MSB) = 50 - 0.5Q Р(О) (MPC) %3 25 + 0.5Q МЕС - 0.5Q Рс (Соmpetitive Equilibrium Price) %3 37.50 Qc (Competitive Equilibrium Quantity) = 25 Pe (Efficient Equilibrium Price) = 41.67 Qe (Efficient Equilibrium Quantity) = 16.66 1) Sketch the curves for these functions and illustrate the competitive equilibrium and label Pc and Qc and efficient equilibrium (labelling Pɛ and QE). 2) On the diagram from part 1, illustrate the areas that correspond to the loss in profit for the firm, the total gain to society and the net gain to society when comparing the competitive equilibrium to the efficient equilibrium