Use the photos to solve the problem below  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.  Also it means you've done all the busy work already--assuming you did the assignment last week.....and got it right.  So this shouldn't require a lot of calculations, 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.]

Tim True increase production from 4 to 5 fire engines because the True or False: If Tim's Fire Engines were a competitive firm instead and $105,000 were the market price for an engine, increasing its production would not affect the price at which he can sell engines. False dominates in this scenario.

Alex's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Alex produced eight fire engines, but he has decided to increase production to nine fire engines. The following graph shows the demand curve Alex faces. As you can see, to sell the additional engine, Alex must lower his price from $80,000 to $40,000 per fire engine. Note that while Alex gains revenue from the additional engine he sells, he also loses revenue from the initial eight engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial eight engines by selling at $40,000 rather than $80,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $40,000. 200 180 Revenue Lost 160 140 120 Revenue Gained 100 Demand 80 60 40 20 1 2 3 5 6 7 8 9 10 QUANTITY (Fire engines) Alex increase production from 8 to…

In 2016, Walmart closed 150 stores in the United States and deeply discounted the merchandise in them. Some people bought the merchandise at these low prices and resold it on Amazon, eBay, and other sites. An article in the Wall Street Journal described one reseller who: "sent three employees in a 26-foot truck to the nearest closing Walmart, about 160 miles south. They hauled off $35,000 in merchandise, like Legos and Star Wars pajamas, which he said he expects to sell for as much as $100,000 on Amazon." Source: Greg Bensinger, "Wal-Mart Closures Bring Out the Amazon Sellers," Wall Street Joumal, January 29, 2016. Is the reseller making a $65,000 profit on these goods? Briefly explain. OA. Yes, the seller is making a $65,000 profit because his revenue is $ 100,000 and his cost is $35,000. B. No, the seller is making less than $65,000 because he incurs transactions costs. c. Yes, the seller is actually earning a $100,000 profit because the $35,000 is a sunk cost. D. No, the seller is…