me second-order conditions for a firm maximizing its profits operating in a perfectly competitive market include all of the following exe Multiple Choice (²(Q)/Q²)< -(dMC/dQ) <0. (d²π/dQ²) <0. (d²π/dQ²) = 0.

The inverse demand function for a homogeneous product Stackelberg duopoly is P = 18, 000 − 5Q. Thecost structure for the leader and follower, respectively, are CL(QL) = 2, 000QL and CF (QF ) = 4, 000QF .(a) What is the follower’s reaction function?(b) Determine the equilibrium output level for both the leader and follower.(c) Determine the equilibrium market price.(d) Determine the profits of the leader and the follower.

In the following problem, find the profit maximizing quantity and graph the marginal revenue and marginal cost. Interpret your first-order condition in terms of marginal benefit and marginal cost. max π = (12 - Q)Q-20² 9

Suppose a large of firms have cost function C(q ) = = 72+ 4q+2q 2 and the market demand Q_{D = 712 4p What is equilibrium and the long-run number of firms? (a) Q = 600 and N = 100 (b) Q 688 and V100 (c) Q = 600 and N = = 688 and N = 115 (e) None of the above 115 (d) Q

The Jones are small farmers in the wheat industry – they are price takers.  Their cost function is:  TC = 600,000 + 3,000Q + Q2 and MC = 3,000 + 2Q.  The market price is $5,000 per ton. Assuming the Jones are maximizing profits (or minimizing loses), how much profit are they making? You must show your work.

There are two ma jor producers of corncob pipes in the world, both located in Herman, Missouri. Suppose that the inverse demand function for comcob pipes is described by p = 120 4q where q is total industry output and suppose that marginal costs are zero. What is the Cournot reaction function of firm 1 to the output, q2, of firm 2? (a) 120-4q22

Sport O Rama Equipment Inc., makes two different types of baseball gloves: a regular model and a catcher’s model. The firm has 900 hours of production time available in its cutting and sewing department, 300 hours available in its finishing department, and 100 hours available in its packaging and shipping department. The production time requirements and the profit contribution per glove are given in the following table: MODEL Production time (hrs): Cutting & Sewing Production time (hrs): Finishing Production time (hrs): Packaging & Shipping Profit/Glove ($) REGULAR 1 1/2 1/8 $ 5 CATCHER'S 3/2 1/3 1/4 $ 8 Assume that Sports O Rama Equipment Inc. is interested in maximizing the total profit contribution, answer the following: How many hours of production time will be scheduled in each department? What is the slack time in each department?

If marginal cost is given by dc/dq= q? + 7q + 6, and fixed costs are 2500, determine the total cost for producing 6 units.

Air Canada announces a 15% off sale on its flights, so fans can watch Toronto Raptors play against the Golden State Warriors in the NBA Finals. What effect will this sale have on Air Canada's flights to destinations other than Canada?

Two firms producing identical products may merge due to the existence oft Multiple Choice economies of scope. economies of scale. cost complementarities All of the statements are comect