Use the photo at exercise 14 to solve the problem below  With the Firm Y response function Qy=600-1/2Qx and the Firm XX response function Qx=600-1/2Qy  Imagine that firm X chooses their quantity first, then firm Y observes the quantity of firm X and chooses their own quantity.  What quantities will they end up choosing?  Is there a first or second-mover advantage here?  [You may assume that firm X can only choose quantities that are multiples of 200.  This prevents you from having to deal with prices that are not on the schedule. just a little thinking about how equilibrium works in a sequential-move game.  Oh, and just give me the quantity for each firm, don't worry about giving me a complete strategy for firm Y.]

After moving into Schine, Dunkin’ reported that their (donut) market equilibrium occurs when 450 donuts are sold at a price of $1.50 per donut. They also reported that the producer will supply no donuts when the price is $0.50 and the customers will demand no donuts at $2.00, what are that supply and demand equations, assuming that both are linear

When firms face downward sloping demand curves for their products,

Please match the following: ✓ Assume that both the demand curve and the supply curve for DVD players shift to the left but the demand curve shifts more than the supply curve. As a result ✓ Assume that both the demand curve and the supply curve for DVD players shift to the left but the supply curve shifts more than the demand curve. As a result ✓ Assume that the demand curve for DVD players shifts to the left and the supply curve for DVD players shifts to the right, but the supply curve shifts more than the demand curve. As a result ✓ Assume that the demand curve for DVD players shifts to the left and the supply curve for DVD players shifts to the right, but the supply curve shifts less than the demand curve. As a result A. Both the equilibrium price and quantity of DVD players will increase. B. Both the equilibrium price and quantity of DVD players will decrease. C. The equilibrium price of DVD players will increase; the equilibrium quantity will decrease. D. The equilibrium price of…

Consider the pharmaceutical company Mylan that produces epinephrine injection devices called EpiPens. In the presence of other firms producing substitutes for this good, the price of EpiPens is $150. Now suppose that competitors to Mylan no longer produce epinephrine injection devices, so Mylan now has pricing power in this market. As the economist on staff at Mylan, you are charged with the task of figuring out what your company's new pricing strategy should be. The following graph shows the marginal cost (MC), which is assumed to be constant, and the average total cost (ATC) of Mylan. The graph also shows the demand curve (D) for EpiPens and the marginal revenue curve (MR) once the firm has market power. On the graph, use the grey point (star symbol) to indicate the quantity of EpiPens demanded if Mylan continues to charge $150. Dashed drop lines will automatically extend to both axes. PRICE (Dollars per EpiPen) 1000 900 800 700 600 500 400 300 200 100 0 0 1 MR 4 2 3 7 5 6 QUANTITY…

Use the photo at exercise 14 to solve the problem below  With the Firm Y response function Qy=600-1/2Qx and the Firm XX response function Qx=600-1/2Qy  Imagine that firm X chooses their quantity first, then firm Y observes the quantity of firm X and chooses their own quantity.  What quantities will they end up choosing?  Is there a first or second-mover advantage here?  [You may assume that firm X can only choose quantities that are multiples of 200.  This prevents you from having to deal with prices that are not on the schedule. just a little thinking about how equilibrium works in a sequential-move game.  Oh, and just give me the quantity for each firm, don't worry about giving me a complete strategy for firm Y.]

Assume the inverse demand function in a market is given by P(Q) = 500 - Q where Q is the total industry output, that is the sum of the output of all firms in the market. There are two firms (indexed by i = 1,2) who both have a cost of producing the good given by c(qi) = 10 * qi The two firms are competing in the Cournot manner, that is they choose their quantities simultaneously in order to maximize profits.

After talking your managerial economics class, you realize that you can probably raise your profits by price discriminating by charging different prices in the two locations.  You then breakdown sales across the two locations In Laredo:  You sold 200 burger meals per week at $9 and 100 meals at $10 In San Antonio:  You sold 1200 meals per week at $9 and 1100 meals at $10 Using the two prices above, estimate your demand function in Laredo. What would demand be at the optimal price from Q1? Using the two prices above, estimate your demand function in San Antonio. What would demand be at the optimal price from Q1? Calculate the point price elasticity of demand at the optimal price for Q1 (and quantity from part A) in Laredo Calculate the point price elasticity of demand at the optimal price for Q1 (and quantity from part B) in San Antonio Assuming that your marginal costs are $3, are you charging more, less, or exactly the optimal price in Laredo Hint: Calculate the markup on price and…

1. It is 1908 and you are the CEO of Ford Motor Company. General Motors startedproducing cars this year and has quickly become your chief rival. Their recent entrance, as wellas your assembly line methods, allows you the advantage of producing cars faster and choosingyour output levels first. Assume the 1908 inverse demand function for cars is P = 3900 - Q(customers view cars as identical products at this point in time) and production costs are C(qi) =100qi. a. What is Ford’s profit-maximizing output level? GM's?b. What is the market equilibrium price?c. How much profit does each firm earn?d. As the assembly line is used by other firms, the first-mover advantage disappears (fast forward100 years to present day), and more firms have entered the market (e.g. FCA, Tesla, Hyundai,Toyota, Honda, etc.), what do you expect to happen to Ford’s profit (assume demand andcosts are the same)? Explain.e. From 1908 into the 1920s, Ford offered customers one car: the Model T. Further, Henry isfamous…

The manager of a bicycle shop has found that, at a price (in Rands) of p(x) = 150 –x/4 per bicycle, x bicycles will be sold . Answer the following:• Find an expression for the total revenue from the sale of x bicycles. (Hint: Revenue = Demand *Price. )• Find the expression for the quantity to be sold q if the demand function demand is given byp = -10q + 3200• What is the number of bicycles x, sold if the price is R40