In an oligopoly market, the firms would earn the highest profit if they chose to ignore the actions of rival firms. а. chose to produce an output equal to the perfectly competitive output level. b. chose to ignore the implications of game theory. С. chose to produce the output equal to the monopoly output level. d.
Q: The graph below shows the efficient contracts and the contract curve. a. Explain the relationship…
A: (A) Contract bend address different mixes of two products allotted between two groups or customers…
Q: Suppose a firm's total cost and marginal cost are given by TC = 192 + 10Q + 3Q² and MC = 10 + 6Q.…
A: Average total price is called the sum general of all manufacturing prices divided with the aid of…
Q: 30 25 20 15 10- 1 3 5 6. 8. Labor 10- 4) 2. Marginal Product
A: Marginal product refers to change in total product with respect to change in input. It refers to…
Q: An individual has a utility function, U(q,,42) = Jq1•92). (Mathematical assistance: x = x2). Derive…
A:
Q: Suppose that the government is going to auction off permits equal to one third of total emissions in…
A: Marginal abatement cost is the cost of reducing environmental negatives such as pollution. The…
Q: Question 5 A function g(z) is strictly increasing if g'(z) > 0 on its domain. Assume the supply and…
A: Given information Qs=S(P)--- quantity supplied is the function of P Qd=D(P+T,Y)---quantity demanded…
Q: Which of the following policies would the Federal Reserve most likely use if the economy was…
A: When the economy is experiencing an inflationary gap (or high inflation), then there is a need to…
Q: If output is $7500, the level of capital is 600, capital's share of total income is 0.6, and the…
A: Let a be the value of capital’s share of total income
Q: Suppose that in 2019 a Canadian city experiences a big increase in the amount of commercial space…
A: The price of any goods and service is determined by the market forces which are demand and supply…
Q: Consider the following game in strategic form. f h e a 8,2 b| 10,5 c| 1,4 d 6,6 7, 10 4,8 1,9 3,1…
A: For a player, a Dominant strategy gives equals or less than compared to other strategies.
Q: The entire market for a good is 1,000 units, and the minimum efficient scale is 5 units. Which of…
A: When talking minimum efficient scale, it is the level of output at which a firm is producing at its…
Q: QUESTION 25 The Marginal Cost curve crosses the Average Total Cost curve at its maximum. True False
A: "Marginal cost represents change in total costs when one more unit is produced while average total…
Q: The term capital, as used by economists, refers to a money b the physical space in which…
A: In economics, the term capital is used in economic activity when an individual or a firm wants to…
Q: Distinguish Nominal GDP and Real GNP with example?
A: Economists use real GDP rather than nominal GDP to measure economic health because real GDP is…
Q: the larger exporters oppose policy might it's be a case macroeconomics
A: Exports are defined as moveable items produced inside one country's borders that are traded with…
Q: Please answer both questions with step by step explanation We begin by examining the model with…
A: The total cost is divided into two categories that are a total fixed cost and total variable cost.…
Q: explain how taxes and subsidies can be used to internalize externality. Next, give an example of the…
A: Tax is an obligatory instalment to the public authority by the pay gatherings. The subsidy is an…
Q: Q3) A) The demand and supply functions of a product is given as P=200 – 0.5Q and P = 100+0.5Q,…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: What is the Fed Funds Rate? the interest rate the Fed pays on reserves stored in the federal funds…
A: The required reserve is the amount of cash banks must keep on hand at any given time.…
Q: Weber Drilling Company is considering investing $20M in oil and gas drilling equipment. It is…
A: The present value of cash flows at the needed rate of return on your project relative to your…
Q: Economic profits are: O total revenue less sunk costs. O total revenue less implicit costs. O total…
A: The difference between the money gained from the sale of a product and the costs of the inputs…
Q: A reserve price is a minimum price set by the auctioneer. If no bidder is willing to pay the reserve…
A:
Q: What is the empirical evidence for the existence of the NAIRU?
A: NAIRU basically refers to the Non-Accelerating Inflation Rate of Unemployment, and the notion is…
Q: Question 3 (CL03): Answer the following questions based on figure given below? 100 200 300 400 500…
A: Since you have provided multiple subparts questions, we will solve the first three for you. If you…
Q: Consider a 2-good economy with a rational consumer who has weakly monotone and weakly convex…
A: Hicksian Demand function is defined as a demand function which shows the reaction of an economic…
Q: 1. Many small companies use accounts receivable as collateral to borrow money for continuing…
A: The amount of interest that is payable every period, expressed as a percentage of the principal that…
Q: If the first payment of $12,000 is received now, what is the present worth of a certain contract,…
A: The present value method is an equivalency method in which a project's cash flows are discounted to…
Q: In which of the scenarios below would Fed decisions geared towards eliminating GDP gaps lead to a…
A: Introduction : inflation is a general increase in the prices of goods and services in an economy.
Q: Bob's lawn mowing service is a profit maximizing, competitive firm. Bob mows lawns for $27 each. His…
A: Total Revenue=$27*10=$270 Total Explicit Cost=Total Cost-Fixed Costs Total Explicit Cost=$280-$30…
Q: In long-run equilibrium, the marginal social cost exceeds the marginal private cost, but the…
A: Oligopoly is a market with few large firms selling homogeneous or differentiated goods
Q: 1. Assume you spend your entire income on two goods X & Y with prices given as Px & Py,…
A: Note: You have uploaded multiple question at a time. We shall answer only the first one. If you seek…
Q: Stock Market Prices: Demand and supply in Action Firms that are quoted on the stock market can raise…
A: A stock market, sometimes also known as an equity market or a share market, is a place where buyers…
Q: The supply and demand curves for bananas are as follows: QD = 3,750 - 725P QS = 920 +…
A: Equilibrium is the situation where demand and supply are equal and both curve interaction determine…
Q: Consider the following data on the GDP of Z-product: i) What was the growth rate of nominal GDP…
A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, I will be…
Q: The economy of HOYA has a spending mulipilier of 4. Based only on this information, we know that in…
A: The multiplier refers to how much change in the injection in any economy increases the level of…
Q: f a firm has negative accounting profits in the short run, it should Question 10 options: All…
A: Accounting profit = Total revenue - Explicit cost Economic profit = Total revenue - Explicit cost -…
Q: The government can achieve permanent higher growth rates by having two determinants of growth. The…
A: There are two determinants that can achieve permanent and higher economic growth. Capital…
Q: Suppose the economy is initially in its long-run equilibrium. Due to the biased (overestimated)…
A: IS-LM model shows money market equilibrium and goods market equilibrium at various levels of…
Q: Craig Nuts Inc. will need to invest in a new nut cracking machine. The plant engineer has gathered…
A: Future worth refers to the compounding of present cash flows at a given rate . FW = ∑Cash flow…
Q: cuss which macro challenge seems the most important to you as of May 2022: economic growth,…
A: Currently us is experiencing the inflationary situation because of the pandemic situation . in…
Q: Someone who wants to buy a car can buy either a used car or a new car. According to the supply and…
A: Supply and demand are influenced by the various factors like Supply of goods is influenced by one…
Q: Using the Lucas Island model show that random shocks to the money supply will impact output while…
A: The Lucas Island Model refers to the model in economics that states the link between money supply…
Q: Consider the following data on the X-product: a) What was the growth rate of nominal GDP between…
A: a) "Nominal GDP of a year is computed by multiplying price and quantity of that year."
Q: Use the graph to answer the question that follows. Without government intervention, this market…
A: The action that is taken by the government seeking to change decisions that are made by groups,…
Q: Bob's lawn mowing service is a profit maximizing, competitive firm. Bob mows lawns for $27 each. His…
A: A competitive firm is one of many firms producing identical goods.
Q: QUESTION 7 Calculate the Multipler using the Information provided in the table: Year Multiplier GDP…
A: Since you have provided multiple questions, we will solve the first one for you. If you want any…
Q: This can occur when a selection among mutually eXclusive alternatives is based wrongly on…
A: When two or more investment alternatives are mutually exclusive, it implies that their cost, rate of…
Q: 1. An individual has a utility function, U(q,,92) = J91 92). (Mathematical assistance: Vx = (a)…
A: We have cobb Douglas utility function whith given price p1 and p2.
Q: 18. Troy's Tire Mart has a replacement value of $965, 000 and is insured for $588, 000, with an 80%…
A: Post-normal can be a way to restoring a third-world country's economy. A loss is defined as an…
Q: Determine which option, if any, should be chosen based on net present worth using a 8% interest…
A: Introduction Data ( Initial cost and annual benefit) related to two alternative such as alternative…
Step by step
Solved in 2 steps
- which of the following statements about industries that are oligopolies is false? Select one a. An oligopoly with two firms is calleda duopaly, b. Firms in these industries may attempt to cooperate. C The fact that there is more than one firm in an oligopoly means that there are no barrien to entry d. Firms in these industries are interdependentExercise A.1 . Compare the quantity and price of an oligopoly with those of a monopoly and those of a competitive market.Oligopoly is the market where few sellers, each offering similar or identical product to the others. а. Т b. F
- One of the predictions of the oligopoly model is that: non-price competition is uncommon and price-cutting competition among rivals is common. O prices tend to remain relatively stable despite short-run fluctuations in market demand. the firms' costs of production (raw material, labor, advertising) remain constant over time. only one buyer (monopsony) will result in the long run. MacBook Pro -> G Search or type URL %23 3 4. 7 8 W R YTwo multinational 3. Dynamic Games of Industrial Organisation companies produce the same good. In the first period, firm 1 sells its prod- uct as a monopolist in Paris. In the second period, firm1 competes with firm 2 in Berlin as a Cournot duopolist. There is no discounting between the two pe- riods. Firm 1 produces quantity xpSave Answer Consider two cigarette companies, PM Inc. and Brown Inc. If neither company advertises, the two companies spit the market and earn $60 million each. If they both advertise, they again split the market, but profits are lower by $20 million since each company must bear the cost of advertisirlg. Yet if one company advertises while the other does not, the one that advertises attracts customers from the other. In this case, the company that advertises earns $70 million while the company that does not advertise earns only $30 million. What will these two companies do if they behave as individual profit maximizers? Neither company will advertise, and PM Inc. earns $60. One company will advertise, the other will not. Brown Inc. earns $70. Both companies will advertise, and PM Inc. earns $40. Both companies will advertise, and PM Inc. earns $60.What is an oligopoly? An oligopoly is a market structure OA. where many sellers compete by selling an identical product. B. where a small number of interdependent firms compete. OC. where many sellers compete by selling differentiated products. OD. where only one firm buys an input in a factor market. OE. where only one firm supplies the entire market. Three examples of oligopolies in the United States are industries that produce or sell OA. DVDs, college textbooks, and breakfast cereal. OB. wheat, pharmaceutical drugs, and beer. OC. first-class mail delivery, dog and cat food, and pharmaceutical drugs D. automobiles, athletic footware, and cigarettes.a. An oligopoly arises when have all or most of the sales in an industry. If oligopolists with the same marginal costs and no fixed costs compete against each other in price, it leads to all firms b. If oligopolists cooperate, they can act as resulting in . Which factors have the potential to develop an oligopolistic market? the granting of a limited number of patents high economies of scale I identical products I low costs of entry a 46°FThe "kinked demand curve model" is a model used to explain: O pricing behavior of oligopoly firms tax incidence; who pays the larger share of a sales tax how "dead weight" efficiency loss is related to the price elasticity of demand O the efficiency loss from price discrimination06 Review #to inte Ramadan Plan... T 101Winter... Q7. Competition, oligopoly, monopoly, Nash equilibrium, subgame-perfect Nash equilibrium, and backward induction. ● Assume that there are N firms that sell mobile phones, where N is a positive integer, and assume that when N> 1 the firms' products are exactly alike (when N = 1 there is just one seller). N is thus a fixed number, and everyone knows which that number is (N is common knowledge). Potential buyers are homogenous in their valuation for mobile phones and each potential buyer consumes at most 1 mobile phone. Suppose that there are 900 potential buyers and each has a willingness to pay $700 for a mobile phone. Assume that each firm's total production costs TC(q) are given by the function TC(q) = 200000 + 300g when q> 0, and TC(q) = 0 when q = 0, where q is the quantity pro- duced by the firm. Assume that firms choose prices and that the firms choose their prices simultaneously and non-cooperatively. a) Determine consumer surplus…1. Best responses in a Cournot Oligopoly Firm A and Firm B sell identical goods Total market demand for the good is: The inverse demand function is therefore 1 P(QM) = 780 -Q=780 -0.02222QM 45 QM is total market production (i.e., combined production of firm's A and B. That is: Q(P) = 35, 100- 45P 2M = A +QB As a result, the inverse demand curve for each firm is: P(QA, QB) = 780- -1/32₁-752 45 Unlike the example in class, the two firms have different costs. = 4000A TCA (QA) TCB (QB) = 260QB = 780 -0.022220A -0.02222QB a. Using the demand function and the cost functions above, what is firm A's profit function. b. Using the profit function above and assuming that firm B produces Qg, calculate what firm A's best response is to firm B’s decision to produce QB- Note: Firm A's best response should be a function of BPRICE ($) 10 O D₁ED₁. O D₂ED2. O D₁ED₂. D2 O D₂ED 1. DI 2000 Sandy's Salmon is an oligopoly. Sandy's rival firms match price decreases but not price increases. Consequently, we expect Sandy's demand curve to likely be (from left to right) QUANTITY DI D2SEE MORE QUESTIONS