D, E and F please thank you All question are with regards to the following set up. There are two firms A and B. Firmscompete in a Cournot Duopoly in Karhide. They set quantities A and q. Inverse demand isP(9A + 9B) = 18 - 9A-9B and costs are C(q) = 3 * q for both firms. Firm B is a domestic firm(in Karhide,) and firm A is a foreign firm (from Orgoreyn.) The government of Karhide engagesin a strategic trade intervention by giving firm B a per unit subsidy of s. (That is, when firm Bproduces and sells qв units, firm B receives a payment of s* qg from the government.)You must show your work at each step, unless the questions is followed by "No work required." (3)Assume that s = 3.(a) Find firm B's profit function under the subsidy. (No work required.)(b) Find firm B's best response function. (You may do this directly or by setting s to zero in yourexpressions from (1b).(c) Why don't I need to ask you to solve for A's best response?(d) Solve for the equilibrium outputs (9₁, 96).(e) Solve for the equilibrium price.(f) Solve for firm B profits.

Answered: Image /qna-images/answer/ec75ffdb-e8f8-475e-a3d0-21fe348ddfd2.jpg

Answered: (d) Solve for the equilibrium outputs…

Business

Economics

(d) Solve for the equilibrium outputs (996). (e) Solve for the equilibrium price. (f) Solve for firm B profits.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: What are the two types of cashflows? Define each

A: The cash flow refers to the net flow of cash and cash equivalents in and out of the businesses or…

Q: How does the credit card company calculate the interest payment?

A: The credit card has been an important tool to increase the purchasing power. This facility has…

Q: Ted's car is now worth $9000, which is 60% of what he paid for it. What did he pay for his car?

A: Present worth is present value or value for now which is calculated after wear and tear,depreciation…

Q: Contract.

A: Each organisation will have its own contract. Some will have more clauses, while others will have…

Q: Why would a bank lending officer be interested in thecash flow statement of a company that is…

A: Cash flow refers to the quantity of cash or cash-equivalent that a corporation gets or expends as…

Q: Describe the process of Borrowing with Credit Cards?

A: The credit card has been an important tool to increase the purchasing power. This facility has…

Q: Define the term disbursements?

A: Money: The term money refers to anything that can be used as a medium of exchange and it has a unit…

Q: Other than lenders, who else might use your credit score and why?

A: Credit decisions are made by lenders. Credit reporting agencies sell credit reports on their…

Q: Carson used $800 000 of their savings to open a coffee shop. The savings account paid 2% interest.…

A: We know that the economic profit is the difference between the total sales revenue of output and the…

Q: hat i nd Ho rovid xplan astict kes elasti

A: The elasticity is the percentage change concept and not the absolute change concept between the…

Q: Cash receipts journal

A: GDP or the gross domestic product is the value of all final goods and services which are produced…

Q: What is Retirement Savings in Canada and what is its importance?

A: Retirement savings in Canada refers to the money that individuals set aside during their working…

Q: PAYMENT HISTORY,CAPACITY,LENGTH OF CREDIT,NEW CREDIT and MIX OF CREDIT how do the above factors…

A: Payment History, Capacity, Length Of Credit, New Credit and Mix of Credit are some of the most…

Q: Please write more clearly.

A: Production function shows the relationship between the inputs used and output produced. The marginal…

Q: 1. A transportation company bought a new truck. The cash price of the truck is $66,000. The company…

A: The minimum monthly payment is the lowest amount a customer can pay on a revolving credit account to…

Q: Calculate Savings rate when income is $22000 and the APS is 0.48

A: APS is the average propensity to save. It is the ratio of savings and income.

Q: How do you build housing in wealthy neighborhoods?

A: It's generally not feasible because of the value of the land. In wealthy areas, land is expensive…

Q: What is fractional ownership?

A: Ownership:The term ownership refers to the legal right or exclusive right over the commodity. For…

Q: lla Stein paid $187.50 interest on a loan of $12,000 for 3 months. What was the rate of interest she…

A: Interest amount =$187.5 Loan amount =$12000 Time=3 months

Q: Why some companies avoid making up-front costs or payments?

A: Companies may require front costs / payments or back cost / payments. Some companies generally have…

Q: If your receive $500 in simple interest on a loan that you made for $10,000 for 5 years, what was…

A: here we calculate the interest rate charged which are as follow-

Q: On November 4, you get a boat loan. Your first payment is due December 4. You write out your check…

A: TVM refers to the concept that a sum of money is value more now than the same sum will be at a…

Q: Write the Elements of Transactions involving interest?

A: Interest is the payment that is made to the lender by the borrower of an amount in addition to the…

Q: Importance of saving money

A: Money: It refers to the cash which is available to the people. Money can be used for buying goods…

Q: Write the different loan terms?

A: A loan is when one or more people, organisations, or other institutions lend money to other persons,…

Q: Ways on How to Raise Money through: Angel investing Venture Capital Selling stock to the Public

A: It could be money, equipment, land, a building, or anything else. The process of purchasing assets…

Q: Describe 2 financial actions that could impact your credit score?

A: There are many financial actions that could impact your credit score, but here are two examples:…

Q: Sara has health insurance with a $2,000 annual deductible, a $3,000 stop loss provision and 80/20…

A: Insurance refers to a type of financial product intended to shield people and businesses from the…

Q: What are other ways to invest in Real estate? Are they long term or short term?

A: Real estate refers to land and any physical property or structures that are permanently attached to…

Q: If you put your $100 into a saving account which earns 5% interest, how long does it take for your…

A: Given information: Amount kept in saving account = $100 Interest rate = 5%

Q: Name one potential benefit of using credit cards?

A: A credit card is a payment card that allows the cardholder to borrow funds from a bank or financial…

Q: What is the Deferred Savings Plan?

A: A deferred savings plan is a plan which allows the taxpayer to pay money in the plan and then…

Q: One In the News article titled "CDs Not Paying Much" suggests that Multiple Choice O Interest rates…

A: Interest rate:Interest is the amount that you get on the deposits. it can be fixed or compound,…

Q: List the elements of Transactions involving Interest?

A: Interest is a charge made to a lender in addition to the principal by a borrower, and it is a…

Q: what is Gross Savings and how is it calculated?

A: Gross saving consists of savings of household sector, public sector and private corporate sector.…

Question

D, E and F please thank you

(3)
Assume that s = 3.
(a) Find firm B's profit function under the subsidy. (No work required.)
(b) Find firm B's best response function. (You may do this directly or by setting s to zero in your
expressions from (1b).
(c) Why don't I need to ask you to solve for A's best response?
(d) Solve for the equilibrium outputs (9₁, 96).
(e) Solve for the equilibrium price.
(f) Solve for firm B profits.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What are the major postpurchase processesengaged in by consumers?
What do experts consider the key to securing a long-term business loan?
Typed and correct answer please. I will rate accordingly with 4 votes.
Compare the interest rates, fees, and other items between 3 mortgage companies or banks for a 15 year and 30 year mortgage of $300,000. Write down your findings. Then, Discuss what you have learned from this experience.
What is the difference between a secured loan and anunsecured loan?
How is the time value of money a sophisticated concept?
Subject - advanced math Frank's loan pay off is to be made in two installments: $2500 in a year, and $3500 in 3 ½year. After talking to his loan officer, it was decided that he could pay both installments in 20months. How much would he pay if his loan is processed at 7 ¼ simple interest. Draw a timelineto illustrate your solution.
When a loan is amortized, it means: a. The principal is never repaid, only interest b. The principal and interest are paid off by the borrower over the life of the loan c. The borrower is in default d. The interest is due entirely at the maturity date
Calculate Savings when income is $2000 and APS is 0.62
A set aside $500 annually in a trust fund which allows interest at 5% effective. What amount does A have to his credit just after the 15th deposit has been made?
Why are the cash flows very important?
What does the income statement summarize?