3-2-Assume a market with two firms selling two products. The demand of Firm 1 is Q1=7-3p1+3p2. The demand of Firm 2 is Q2=7-3p2+3p1. Assume all zero marginal and fixed costs. What is the reaction function of Firm 1? What is the reaction function of Firm 2? What is the equilibrium price of Firm 1? What is the equilibrium price of Firm 2? 30pts
Q: do fast i will 15 upvotes plz do fast don't use chatgpt answer.
A: The amount of revenue gotten form taxing as much as government to get is the product of multiplying…
Q: Q10 I don't know how I got them all wrong
A: At begining the demand function :P−64D−2100=64−162100−3900⇒P−64D−2100=−481800⇒D=4500−37.5P…
Q: In Thailand, assume that market of grains (animal feeds) is perfectly competitive. Suppose…
A: Scenario: Prices of inputs used in grains production are increasing The increase in the inputs in…
Q: 3. MUSEUM MONOPOLY MATH Once the museum has incurred the basic operating cost of 60 to open for the…
A: Let's break down each part of the problem in detail, elaborating on the concepts and calculations…
Q: PLS HELP ASAP ON BOTH
A: No. 1 QuestionAnswer: True- This includes the collection, transport, treatment, and disposal of…
Q: None
A: b)Higher interest rates increase the cost of borrowing for businesses and households. This can lead…
Q: Question 4 Consider the file named Gun Buyback Proposals. Currently, the equilibrium price of this…
A: Currently, the equilibrium price is $1,200 and the equilibrium quantity is 6,000 units, given by the…
Q: None
A: The world price is represented by P2, because at this price, quantity supplied is more than the…
Q: None
A: Willingness to Pay (WTP) is an economic concept that refers to the maximum amount an individual or…
Q: Assuming the change in demand from D1 to D2 was caused by a decrease in consumer income from $30,000…
A: Income Elasticity of demand , Ei , tells us how much the quantity demanded of a good will change in…
Q: Price 10 Quantity a. This firm will produce units of output at a price of b. The firm will earn a…
A: Here are some additional points to consider:This is a static analysis, and it does not take into…
Q: Suppose the current economy requires $6 million for transactions. The table below shows the interest…
A: The total asset demand when the interest rate is 6 percent can be calculated by referring to the…
Q: 05 A bank that has assets of $60 billion and a net worth of $20 billion must have Mc Sraw Hill…
A: Given information: Assets = $60 Billion Net Worth (or Equity) = $20 Billion Solution: We know…
Q: MCQ question 1 Two firms are deciding whether to invest in a new technology or not. The payoff…
A: Analyzing the Scenario for Nash EquilibriumWe've been given the decision-making scenarios for two…
Q: Question 1: 1-6 B to Ibar (U)=5x,x2 A. Consider Toni's expenditure minimization problem: min…
A: A. The following are the first-order requirements for Toni's spending minimization problem: \[…
Q: None
A: Marginal revenue product = change in total revenue/change in labor= [(42*80) - (38*85)]/(4 - 3)=…
Q: Need new answer
A: Approach to solving the question:The primary method for solving extensive form games such as this…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: Let's look at the PPF curves:Based on the circles on the blue PPF, the blue line is Elijah's PPF,…
Q: Letang Tsipane started a business restaurant called Letang Coffee on 1 May 2023 The following…
A: Transactions: Purchased inventory on credit from Wholesale Supplies R12,400Sold merchandise for cash…
Q: None
A: Referenceshttps://www.investopedia.com/terms/d/demand-curve.asp
Q: A firm's current profits are $400,000. These profits are expected to grow indefinitely at a constant…
A: The problem requires the determination of the firm value where it has current profits of $400,000…
Q: PLS HELP ASAP ON BOTH
A: Answer (1) At breakeven there is no profit no loss. Thus it is a business tool that is used by the…
Q: 1. Assume the payoff matrix for a game is as follows. Firm B X Y Firm A 6,6 14,2 2 2, 14 9,9 What is…
A: From the given payoff matrix, we know, Collusive payoff = 9Cheating payoff = 14Competition payoff =…
Q: . (a) If a firm sells Q tons of a product, the price P received per ton is P = 1000 - 13Q. The price…
A: a) The profit function (π) is determined by the total revenue and total cost functions. It is the…
Q: PLS HELP ASAP ON BOTH
A: True. SMART goals are indeed Specific, Measurable, Action-oriented, Realistic, and…
Q: 1. Assume the payoff matrix for a game is as follows. Firm B X Y Firm A 6,6 14,2 2 2, 14 9,9 What is…
A:
Q: Question 19 3.33 pts A firm faces the following demand function for its product: Q = 25 - 2P1 +…
A: P1 is the product of the firm; P2 is exogenous as it is not firm's product, hence taken as a…
Q: A restaurant has tracked the number of meals served at lunch over the last four weeks. The data show…
A: To determine the seasonal (daily) indices for the restaurant based on the number of meals served at…
Q: Ukraine recovery: After the war, Ukraine's capital stock declines. Choose one scenario that cannot…
A: Capital per capita increases in a standard Solow model with constant population and productivity up…
Q: in 2022 a loaf of bread would cost 2.49 euros. the CPI for 2000 and 2022 with base year 2015 is…
A: Approach to solving the question: To solve this problem, we need to use the concept of the Consumer…
Q: None
A: 1. Price Charged by the Firm:In a perfectly competitive market, the price remains the same for all…
Q: None
A: According to the graph, which depicts the long-run aggregate supply (LRAS), short-run aggregate…
Q: None
A: Supply and Demand Curve for Research FundingThe supply curve represents the quantity of research…
Q: Alpha can produce either 18 oranges or 9 apples an hour, while Beta can produce either 16 oranges or…
A: In economics, the opportunity cost of a choice is the value of the best alternative forgone, in a…
Q: Supply and demand curves are shown in the figure below. A price of $4 is artificially imposed.…
A: At the Artificially Imposed Price of $4:Consumer Surplus: This is calculated as the area between the…
Q: At P = $6, this firm's total profit or loss will be:
A: In pure competition, there are many firms in the market, each producing an identical product, and no…
Q: 5:08 Suppose there is a decrease in money supply, as a result interest rates will Multiple Choice O…
A: Option a) rise and the quantity of money will remain constant: This option is incorrect because…
Q: At which point is production efficiency attained? (a) a (b) b (c) c…
A: Production efficiency occurs when a company or firm produces goods and services at the lowest…
Q: 1. Use the model of the production possibility frontier below to answer the following questions.…
A: Approach to solving the question:Recognize the idea of economic development and how it affects the…
Q: Exercise 3.8. Find the Nash equilibria and the subgame-perfect equilibria of the following game. A 2…
A: To analyze this game, we will start by finding both the Nash equilibria and the subgame-perfect…
Q: If the free trade price is IP and this country imposes a trade tariff of $3, the amount of tariff…
A: Area b represents the tariff revenue of the government.Option B is the right answer while a…
Q: None
A: QTCTFCTVCAFCAVCATCMC100560500605.00.65.6…
Q: Starbucks and Krispy Kreme are trying to decide whether or not to open a shop in the new Mall of…
A: Detailed Explanation: The Nash equilibrium in the payoff matrix for this game can be found by…
Q: Question comp 20 20 16 12 8 4 ---- L ------ ------ S D 0 04 8 12 16 20 24 Q 16. Assuming this market…
A: Step 1:Step 2: Step 3: Step 4:
Q: The following table gives output levels for different levels of workers at Ken & Larry's Ice Cream.…
A: The Marginal Product (MP) of labor is the additional output that is produced when one more unit of…
Q: A present asset (defender) has a current market value of $81,000 (year 0 dollars). Estimated market…
A: Step 1:Marginal cost is the cost for keeping the defender for 1 more yearMarginal cost= Loss of…
Q: The United States is very large and very diverse in terms of economy. For example,someone would…
A: [2] The AD-AS Model, or Aggregate Demand-Aggregate Supply Model, can be used to illustrate the…
Q: What is the profit maximizing level of output for the monopoly firm represented above? (a)…
A: Based on the graph, the profit-maximizing level of output for the monopoly firm is (b) 14. This can…
Q: The table below shows information for United Bank. Deposits Reserves Reserve Requirement $300…
A:
Q: Suppose the current economy requires $7 million for transactions. The table below shows the interest…
A: FEEL FREE TO ASK FOR CLARIFICATIONS
Step by step
Solved in 2 steps with 4 images
- There are only two driveway paving companies in a small town, Asphalt, Inc. and Blacktop Bros. The inverse demand curve for paving services is ?= 2040 ―20? where quantity is measured in pave jobs per month and price is measured in dollars per job. Assume Asphalt, Inc. has a marginal cost of $100 per driveway and Blacktop Bros. has a marginal cost of $150. Answer the following questions: Determine each firm’s reaction curve and graph it. How many paving jobs will each firm produce in Cournot equilibrium? What will the market price of a pave job be? How much profit does each firm earn?Suppose we have two identical fırms A and B, selling identical products. They are the only firms in the market and compete by choosing quantities at the same time. The Market demand curve is given by P=287-Q. The only cost is a constant marginal cost of $13. If Firm A produces a quantity of 60 and Firm B produces a quantity of 33, what is market price? Enter a number only, no $ sign. 1947. A honey farm is located next to an apple orchard and each acts as a competitive firm. Let the number of apples produced be measured by A and the amount of honey produced by H. The cost functions of the two firms are CH (H) = H²/100 and C₁(A)=4-H. The price of honey is £2 and the price of apples is £3. 100 a. If the firms operate independently, what is the equilibrium number of apples and amount of honey produced? Are these amounts the Pareto-efficient? Explain. b. Suppose the two firms merge. What is the profit maximising amount of apples and honey that the merged firm produce? Explain. c. What is the socially optimum amount of honey and apples? Discuss methods to induce the independent firms to produce the socially optimal number of apples and amount of honey. Explain.
- A study of ethanol as a transportation fuel reveals that the competitive equilibrium is expected to be at a price of $4 per gallon and a consumption rate of 100 million gallons/day. For a production rate of 10 million gallons/day, the marginal cost is found to be $1 per gallon. Also, a a price of $10 per gallon the demand is 10 million gallons/day. Answer the following questions for this system. 1. Determine the equations for the demand and marginal cost lines. 2. Calculate the consumer and producer surplus for the market equilibrium. 3. It was discovered later that the above information ignored a government subsidy of 50 cents per gallon. How will the demand and marginal cost lines, and the competitive equilibrium, change if this subsidy is removed?3. The (market) inverse demand function for a good is as follows: 12- 2q if q = [0,6], if q> 6. Pp(q) = { 12 There are two firms: N = {1,2}. Each firm's cost function is such that producing a units of the good incurs cost 2r. We consider the Cournot competition of the two firms. That is, they simultaneously choose their quantities. The firms are profit-maximizers. (1) Find a Nash equilibrium. (2) What is the size of the deadweight loss incurred by the Duopoly, compared to the competitive equilibrium allocation?Consider a market of 6 firms that compete through production. Demand is given as P = 220 – 2Q. Each firm has a marginal cost of $20. a. What will be the equilibrium firm quantities, market price, and firm profits? b. Suppose two firms merge in this market to become a leader. What will be the new equilibrium firm quantities, market price, and firm profits? Was it profitable for the firms to merge into a leader? Note that n = 5 after the merger. c. Suppose another two firms merge to form a second leader in the market. What will be the new equilibrium firm quantities, market price, and firm profits? Was it profitable for the followers to merge into a co-leader? Note that n = 4 and L = 2 after the merger:
- 2. An industry contains two firms and the inverse demand function for the firms' output is P-180-30, where Q is the total output Suppose that firm I's cost and marginal cost functions are C(q)- 30q; and MC(q)-30, while firm 2's cost and marginal cost functions are C(q)-q² and MC(q)-2q2 a. Determine each firm's Nash equilibrium output. b. Determine each firm's profit at the Nash equilibrium output.Consider the following market demand function: Q= 20-2P, where P is the market price. Suppose there are two firms- A,B in the market and they have the same cost function: the per unit cost of producing output is 4. The firms compete by choosing quantities. Find the reaction functions for both the firms if they are maximizing profits. What is the profit maximizing output for each firm and corresponding market price? If there was only one firm in the market how would your answer change?consider 2 gas stations in a remote village facing a simple linear markit demand Q=300-5P, but have different marginal costs of production, both constant, such that MCx=20 and MCy=10. 1. Measuring the quantities Qx on the horizontal axis and the quantities Qy on the vertical axis, draw the reaction curves for each of the gas stations.
- Short-run supply and long-run equilibrium Consiber the competitive market for rhodium. Assume that no matter how many firms operate in the induatry, every firm is identical and faces the same marpinal cost (MC), averapt total cost (ATC), and average variable cost (AVC ) curves plotted in the following praph. The following graph plots the market demand curve for thodium. If there were 10 firms in this market, the short-run equilibrium price of rhodium would be per pound. At that price, firms in this industry would. Therefore, in the long run, firms would the rhodium market. Because you know that competitive firms earn economic profit in the long run, you know the long-run equilibrium price must be per pound. From the graph, you can see that this means there will be firms operating in the rhodium industry in long-run equilibrium. True or False: Assuming implicit costs are positive, each of the firms operating in this industry in the long run earns positive accounting profit. True FalseY6 Suppose that a market consists of 300 identical firms, all with the same cost curve: TC(4) = 0.1 + 150g?. The market demand is given by Qd(p) = 60 - p (a) What is the equilibrium price and quantity? (b) What quantity must each firm produce and sell at equilibrium? (c) Do firms make positive profits in the market equilibrium? (d) Calculate consumers' surplus, producers' surplus and total surplus.1. An industry consists of three firms with identical cost functions, C(q.) = 18q; + q?, where i = 1,2, 3. Market demand is given by Q = 150 – P, where Q = E1q; is total industry quantity. (a) Are there fixed costs? Constant marginal costs? Economies of scale? (b) Solve for the Cournot Nash equilibrium quantities, price, and profits.
