Use the values in the table below to answer the following questions. Q TC ATC MC 1 5.31 6 22.8 7 -(C)- 25 286.8 26 -(D)- 5.31 -(A)- -(B)- 7171 -(E)- The value of 203.7 should be entered in cell O A. (A) B. (B) O C. (C) D. (D) E. (E) O F. None of the above 66.9 867

1. Two profit-maximising firms call them firm 1 and firm 2- compete in quantities. Before the firms choose their quantities, firm 1 has the option to spend money on advertising, which allows differentiating the two products. That is, firm 1 chooses a € [0, 1] (i.e., 0≤ a ≤ 1) and pays ca, with c> 0. The two firms then face the following inverse demand functions: P₁ = 1-q₁ (1-a)q2 and p2=1-92-(1-a)9₁. There is no cost of production so the profit of firm 1 is #₁ = pigi - ca and the profit of firm 2 is #2 = P292. (a) (c) (d) (b) Without doing any calculation, briefly explain what the market struc- ture would be if firm 1 one chose not to advertise at all (a = 0) and if it chose the maximal amount of advertising (a = 1). [max: 50 words] For any value of a € [0, 1], calculate the equilibrium quantities. Calculate the optimal level of advertising for firm 1. Briefly provide intuition for your results. [max: 50 words] And here is an example. When solving for the question given above, You can…

Number of wells Total water output (in 1000s of liters/day TR TC AVR Profit 0 0 0 0 0 0 10 100 10000 600 1000 9400 20 200 20000 1200 1000 18800 30 280 28000 1800 933.3 26200 40 340 34000 2400 850 31600 50 380 38000 3000 760 35000 60 400 40000 3600 666.7 36400 70 400 40000 4200 571.4 35800 80 380 38000 4800 475 33200 90 340 34000 5400 377.8 28600 Use your graph and the data in your table to identify the economically efficient numberof wells (Hint: What is the profit maximizing number of wells?)

K L Q MPL APL (Q/L) VML (MPL*P) FC VC (L*150) TC 5 0 0 0 0         5 1 50 50 50 50 25 150 175 5 2 125 75 62.5 150 25 300 325 5 3 225 100 75 200 25 450 475 5 4 375 150 93.7 300 25 600 625 5 5 450 75 90 150 25 750 775 5 6 450 0 75 0 25 900 925 5 7 400 -50 57.14 -100 25 1050 1075 5 8 425 -75 53.12 -150 25 1200 1225 5 9 450 -25 50 -50 25 1350 1375 5 10 500 -50 50 -100 25 1500 1525 5 11 525 25 47.7 50 25 1650 1675   Define the Firm’s Variable Costs. Next, what is the VC in the Table above?

48 44 40 36 32 28 24 20 16 12 8 4 100 0 0 Ⓒ (b) $25 (c) $10 (d) $27 (e) $18 4 8 a 12 16 38. What would this firm charge if it wanted to minimize production costs? (a) $5 b. MR 20 MC d 24 28 ATC- AVC- D 32 BENTONG

pls help

K L Q MPL APL (Q/L) VML (MPL*P) FC VC (L*150) TC 5 0 0 0 0         5 1 50 50 50 50 25 150 175 5 2 125 75 62.5 150 25 300 325 5 3 225 100 75 200 25 450 475 5 4 375 150 93.7 300 25 600 625 5 5 450 75 90 150 25 750 775 5 6 450 0 75 0 25 900 925 5 7 400 -50 57.14 -100 25 1050 1075 5 8 425 -75 53.12 -150 25 1200 1225 5 9 450 -25 50 -50 25 1350 1375 5 10 500 -50 50 -100 25 1500 1525 5 11 525 25 47.7 50 25 1650 1675   Define firm’s fixed costs. Next, what is Firm’s FC in the Table above. Why?

Pls help ASAP

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e. 0 10 20 11 12 13 14 15 16 17 18 19 20 $160,000 ▼ $160,000 V