Kate and Alice are small-town ready-mix concrete duopolints. The market demand function is o- 20,000 - 200Pwhere Pis the price of a cubic yard of concrete and Ois the number of cubic yards demanded per year. Marginal cost is sa0 per cubic yard. Suppose Kate onters the market first and chooses her output belore Alice. What is the difference in Alce's profit when Kate enters the market tirst, compared to when they simultaneously select ther outputs? When Kate enters the markat first, Alice's profit is $3,888.a0 lower. O When Kate enters the market fest, Alice's profit is $13,333 33 lower. O When Kate enters the market first, Alice's profit is $5.000 lower O When Kate onters the market first, Alice's proft is $1.111.11 higher,

Firms J and K produce compact-disc players and compete againstone another. Each firm can develop either an economy player (E)or a deluxe player (D). According to the best available marketresearch, the firms’ resulting profits are given by the accompanyingpayoff table.a. The firms make their decision independently, and each is seeking itsown maximum profit. Is it possible to make a confident predictionconcerning their actions and the outcome? Explain.Firm KE DE 30, 55 50, 60 Firm JD 40, 75 25, 50b. Suppose that firm J has a lead in development and so can move first.What action should J take, and what will be K’s response?c. What will be the outcome if firm K can move first?

Return to Figure 9.2. Suppose P0 is $10 and P1 is$11. Suppose a new firm with the same LRAC curve asthe incumbent tries to break into the market by selling4,000 units of output. Estimate from the graph what thenew firm’s average cost of producing output would be.If the incumbent continues to produce 6,000 units, howmuch output would the two firms supply to the market?Estimate what would happen to the market price as aresult of the supply of both the incumbent firm andthe new entrant. Approximately how much profit wouldeach firm earn?

Alex Anna Open Sans,s... v √¶" S 10pt Table 3: Maximum Price Ⓒ Refer to table 3. Suppose the restaurant engages in mixed bundling and charges $3 for a bundle, $2.52 for chicken nuggets, and $1.5 for fires. The restaurant's cost to produce chicken nuggets is $1, and the cost to product fries is $0.5. Show that the profit obtained under mixed bundling will be higher than that under pure bundling. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BI U Paragraph > ¶< Chicken Nuggets E $2.50 $2.55 田田田 Ix X XQ Fries 由用网 $0.5 $1.0 Q== < 0) Ⓒ 23 + X² X₂

If all of the firms in an industry are making positive economic profit, what does it mean for those firms? O The firms accounting profit the firms" opportunity cost O The firms' explicit cost firms' opportunity cost

17 of 16 BNW is one of many producers of luxury wheelchairs, which are differentiated to appeal to different market niches. BNW's Price per chair relevant demand and cost curves are depicted in the graph. $2,000 Average total Use this graph to answer the questions. Assume that there are 1,800 Marginal cost no significant barriers to entry. cost 1,600 Determine BNW's profit-maximizing price and quantity. 1,400 1,200 1,000 price per chair: $ 800 600 400 quantity of chairs: chairs 200 Demand Marginal revenue 100 200 300 400 500 600 700 800 900 Calculate BNW's profit. Chairs per week BNW's profit: $

Suppose a company called Clayton N. Inc. is selling a product known as "Iris' Giant Birthday Candles". The company has the following table: 9 P TR TC Profit MR MC AProfit 5 0 25 1 25 O 2 25 3 25 4 25 5 25 80 0 1 What is the quantity produced? 2 10 3 O 5 30 20 10

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Mo increase production from 5 O True O False 6 fire engines because the dominates in this scenario. True or False: If alternatively Mo's HookNLadder were a competitive firm and $160,000 were the market price for an engine, decreasing its price from $160,000 to $120,000 would result in a decrease in the production quantity, but an increase in total revenue.