If two identical firms with marginal cost of 4 and demand curve P=45-Q compete using the Cournot model, find profit 2 Select one: O a. 70. O b. 54.68. O c. 23.75. O d. 69.43.
Q: A] Measurement error in the dependent variable leads to biased OLS estimates? a-Yes, always b No,…
A: Hi! Thank you for the question. As per the honor code, We’ll answer the first question since the…
Q: Compare and contrast the way that monopolistic competitors set price with the way that perfectly…
A: In general equilibrium theory, "perfect competition," sometimes known as "atomistic competition," is…
Q: Following a demand-side recession, what happens to full employment GDP (C+l+G) after a few…
A: When AD and AS interact then goods market archive equilibrium point at certain price level and…
Q: A firm faces the demand curve: P = 1,350 - 8Q. What is the firm's revenue maximizing price? Enter as…
A: Total revenue is the product of price and quantity.
Q: Explain the function of commercial banks in Oman;
A: Commercial banks are defined as financial entities that accept public deposits and distribute those…
Q: Discuss how the production possibility frontier model can be used to basic economic problem of…
A: "Since you have posted multiple questions ,we will solve first question for you.If you want…
Q: X** a. Show on the above graph the substitution and income effects. b. Which of the income and…
A: In order to find the income and substitution effect, we will increase the individual's nominal…
Q: Bird Wing Bedding can lease an asset for 4 years with payments of $19,000 due at the beginning of…
A: A lease rate is paid for renting an asset, such as real estate or a car, for a certain period. The…
Q: There is a famous saying that “the monopolist is the conservationist's friend." Explain why this…
A: The Non-renewable resources are limited in quantity and such resources must be used judiciously. the…
Q: Question 18 Consider an economy characterized by the AS and AD curves in the textbook. Moreover, you…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: In the standard AS-AD framework, after a positive one-period inflation shock at time t (that is, ō,…
A: inflation is the pace of increase in costs throughout a given timeframe. inflation is commonly a…
Q: Price Per Unit Demand (MPB) MSB Supply Quantity
A: Externality is a situation where the third party/economic agent is associated with the cost/benefit…
Q: Now suppose 4,000 of the people looking for work get discouraged and give up their searches. What…
A: A percentage representation of the number of jobless people in relation to the total number of…
Q: 3.
A: The outcome of a situation of interactions between persons with competing interests is studied by…
Q: A monopolist has a cost function given by C(y)=y2 and faces a demand curve given by P(y) = 120-y.…
A: The structure of a market where there is a single seller in the market who is a price maker due to…
Q: Suppose a producer can manufacture her smartphones at a constant marginal cost of $300. She…
A: Rule of thumb for pricing with an "incremental margin percentage" Incremental margin percentage =…
Q: Parameter z = 1 How many pure strategy profiles exist in this game
A:
Q: Question 2 Compute the BC ratio at i 10%, for the following project and justify if you selected it…
A: The ratio that is used in the analysis of cost and benefit that attempts to summarise the overall…
Q: Suppose the following table: 2014 2015 2016 Product Quantity Price Quantity Price Quantity Price…
A: d) Real GDP;
Q: The use of gasoline creates a negative externality through air pollution. What is the size of the…
A: Market inefficiency, which arises when supply and demand are out of balance, results in a deadweight…
Q: Exercise #1: Write two paragraphs on the impact of borrower liquidity (think, cash like assets and…
A: The term borrower liquidity basically refers to the sum availability under the Revolving credit…
Q: Grapes and bananas are perfect complements for Jane and Betty. Jane eats one grape per three…
A: *Answer: Complement Function Jane's utility function = min {20 Grapes, 10 Bananas} Betty's…
Q: As a part of their benefits program, Lonny's Grocery Store offers its employees a PTO package that…
A: 1. Employee benefits support your employees' indirect pay.
Q: Consider the following game in strategic form. e 3, 1 10,5 1,4 6,6 7, 10 4,8 1,9 7,3 2,5 7,2 3, 4 a…
A: Weakly dominant strategy gives the equal or less payoff compared to its other available strategies.
Q: Suppose in the economy of Richlandia the GDP in 2021 was $ 150 billion. Also, assume that gross…
A: Given: GDP=$ 150 billion Gross investments =$ 40 billion Personal consumption expenditure = $ 80…
Q: A rice farmer in Japan analyzed the sales data. The data showed that when the product price (pe:…
A: price elasticity of demand is the proportion of the rate change in the amount requested of an item…
Q: Explain the quantity theory of money and the effects of an expansion of the money supply. Does the…
A: The quantity theory of money According to the quantity theory of money, an economy's money supply…
Q: The Lahiri family rents a room in their home on Airbnb. They deposit all of the money that they earn…
A: Revenue is the total measure of cash an organization procures by selling items and services at a…
Q: a) Explain, in your own words, the idea of comparative advantage and why it creates an argument for…
A: a) Comparative advantage in trade refers to having a lower opportunity cost in production of the…
Q: 1. Assume a neo-classical aggregate supply model with both long run and short run aggregate supply…
A: Aggregate demand is defined as the total demand of all final commodities and services at a given…
Q: 1. Production engineers of a manufacturing firm have proposed a new equipment to increase…
A: An investment of 500,000 a uniform annual revenue of 200,000 for 5 years a salvage value of 100,000.…
Q: - 7), where b = 2, = 1/5, and R - T = 0.01. ock where the economy goes from ā = -0.01 to ā = 0.0,…
A: *Answer:
Q: Explain why monopsony gives rise to union development in labor markets.
A: Monopsony is defined as a market condition where the entire market is dominated by a single buyer.…
Q: 7. What is the cost in real dollars today of spending $25,000 four years from now if your effective…
A: Total Spending = 25,000 n = 4 inflation = 7% MARR = 3%
Q: An investment of 105,815.40 can be made in a project that will produce a uniform annual revenue of…
A: An investment of 105,815.4 a uniform annual revenue of 53,000 for 5 years a salvage value of 30,000.…
Q: When interest rates increase in the United States O there is a tendency for the value of the dollar…
A: Interest rate is.the rate at which monetary instruments are exchanged in the market.
Q: Question 32 The last unit purchased of good "X" gave you marginal utility = 3 and c $10/unit. The…
A: A consumer will maximise utility at a point where marginal rate of substitution is equal to the…
Q: 5) Two used car dealerships compete side by side on a main road. The first, Harry's Cars, always…
A: A warranty is a written assurance of quality from a product manufacturer or service provider to a…
Q: 4. The marginal social cost (MSC) of an electricity generating plant that uses coal is estimated by…
A: a) Given that, p=60-2Q TR = pQ We get, TR= 60Q-2Q^2 Differentiating TR w.r.t Q we get, MR=60 - 4Q…
Q: If two identical firms with marginal cost of 2 and demand curve P=50-4Q compe profit 2 Soloct
A:
Q: Explain how opening up, freeing economy, or allowing foreign investor to invest in the Philippines…
A: Philipines economy is one of the dynamic economy of East Asia Pacific region that is open to trade…
Q: A construction company intends to build a fly-over that costs P3,000,000. The annual maintenance is…
A: Total cost is the cost that is incurred in the production of goods and services. The total cost is…
Q: The figure shows the graphs of the cost and revenue functions for a company that manufactures and…
A: A break-even point is the point at which a company's costs and revenues equal each other, often…
Q: There is a 20% tax on the first $15,000 of income, a 30% tax on income above $15,000 until $30,000,…
A: Given, 20% tax on the first $ 15000 of income , a 30% tax on income above $ 15000 until $ 30000 and…
Q: Grapes and bananas are complements for Jane and Betty. They always eat bananas and grapes in exact…
A: A natural extension to the analysis is general equilibrium analysis or how demand and supply…
Q: the economy's ability to produce goods and services increases the demand for goods and services will…
A: The money supply curve is vertical because the Fed sets the amount of money available without…
Q: In a simple, private economy, suppose that the MPC is 0.8 and investment rises by $20 million.At the…
A: The investment multiplier says that how much change of investment would cause how much change in…
Q: (Figure: Price Controls in the Market for Strawberries) Use Figure: Price Controls in the Market for…
A: Price control aims to preserve the welfare of the public by establishing a minimum and maximum price…
Q: 1) In the medium run monetary and fiscal policies are neutral. 2) An increase in the workers…
A: Since you have posted a question with multiple sub-parts, we will solve first three questions for…
Q: Questions 2: Issue 2: 2.1. Does the behavior of Plesco about entering the US market and selling…
A: Property Right refers to the rights that the government or the law of a country bestows on the owner…
Step by step
Solved in 3 steps
- If two identical firms with marginal cost of 2 and demand curve P=50-4Q compete using the Cournot model, finc profit 2 Select one: O a. 5. O b. 70. O c. 69.43. O d. 23.75.If two identical firms with no cost and demand curve P=20-2Q compete using the Cournot model, find price. Select one: a. 12.24. O b. 4.167. O c. 2.5. O d.4.Refer to the figure at right. Two firms operating in the same market must choose between a collude price and a cheat price. Firm A's profit is listed before the comma, B's outcome after the comma. If each firm tries to choose a price that is best for it, regardless of the other firm's price, which of these statements is correct? O A. Both firms should charge a cheat price. OB. Firm A should charge the collude price; Firm B should charge a cheat price. C. D. Both firms should charge a collude price. Firm A should charge a cheat price; Firm B should charge a collude price. Cheat Price Firm A Firm B Cheat Price Collude Price Collude Price 18, 18 6,30 30,6 24, 24
- If two identical firms with marginal cost 5 and demand curve P=70-2Q compete using the Cournot model, find Q1. Select one: a. 4.167. b. 13.67. c. 1.94. O d. 4.1.10 1.20 - 226 - 215 - 106 - 89 - 56 - 37 - 44 - 25 - 52 - 32 - 70 -51 - 93 -76 - 118 - 102 What are the firms' strategies? The firms pick O A. quantities. OB. profits. O C. advertising. O D. competition. OE. prices. Why is this situation an example of the prisoners' dilemma game? This game is a type of prisoners' dilemma because O A. the firms are rivals. O B. competing maximizes joint firm profits. O C. the game results in cooperation. Click to select your answer. P&G 1.10 1.20 1.30 1.40 1.50 1.60 1.70 1.80 1.30 - 204 - 73 - 19 -6 - 15 - 34 - 59 -87 1.40 194 - 58 2 4 12 3 - 18 -44 -72 1.50 - 183 - 43 15 29 20 -1 - 28 -57 1.60 - 174 - 28 31 46 36 14 -13 -44 1.70 - 165 - 15 47 62 52 30 1 -30 1.80 - 155 -2 62 78 68 44 15 - 17Please help me ASAP. I will really appriciate it. Thank you Assume a Nash-Cournot equilibrium. How much output does firm 1 produce? Assume a Nash-Cournot equilibrium and no fixed cost. How much profit does firm 2 make? Now assume a collusive equilibrium. What is firm 1's output?
- Which of the following is NOT an assumption of the model of monopolistic competition model? Select one: O a. each firm is independent in its decision making O b. there is freedom of exit and entry into the industry Oc. each firm produces a product which is identical to that of its competitors O d. many small firmsTable 17-4 Only two firms, ABC and XYZ, sell a particular product. The following table shows the demand curve for their product. Each firm has the same constant marginal cost of $8 and zero fixed cost. O a. $5 O b. $15 Price (Dollars per unit) O c. $20 O d. $10 28 26 24 22 20 18 16 14 12 10 8 6 4 2 0 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 Refer to Table 17-4. How much less do each of these firms earn in the Nash equilibrium than if they jointly maximize profits? Quantity Demanded (Units) Total Revenue (Dollars) 0 130 240 330 400 450 480 490 480 450 400 330 240 130 0Firms J and K produce compact-disc players and compete againstone another. Each firm can develop either an economy player (E)or a deluxe player (D). According to the best available marketresearch, the firms’ resulting profits are given by the accompanyingpayoff table.a. The firms make their decision independently, and each is seeking itsown maximum profit. Is it possible to make a confident predictionconcerning their actions and the outcome? Explain.Firm KE DE 30, 55 50, 60 Firm JD 40, 75 25, 50b. Suppose that firm J has a lead in development and so can move first.What action should J take, and what will be K’s response?c. What will be the outcome if firm K can move first?
- Home Depot and Lowe's Are Deciding on Building New Stores. Below is the their profit matrix based on the number of stores. The Nash equilibrium Home Depot # stores 5 7 10 16,16 14,21 10,20 Lowe 7 21,14 15,15 9, 12 10 20,10 12,9 5,5 Lowe 7, Home Depot 7 Lowe 7, Home Depot 5 Lowe 5, Home Depot 7 Lowe 10, Home Depot 5Consider two firms in a competitive market. The following table shows the marginal costs of the two firms. Marginal Cost ($) Output Firm 1 1 5 2 3 4 5 6 7 8 a. 11.5; 12.0 O b. 10.5; 11.5 c. 11.0; 11.5 d. 12.0; 14.0 e. 12.0; 12.5 6 Check 8 9 11 12 14 15 Firm 2 5.5 6.5 7.5 8.5 9.5 10.5 11.5 If the equilibrium price falls strictly between $[ Answer01] and $[ Answer02 ], the two firms will produce a total of 12 units and the allocation of production will be efficient. 12.51. Two firms (A and B) play a competition game (i.e. Cournot) in which they can choose any Qi from 0 to ¥. The firms have the same cost functions C(Qi) = 10Qi + 0.5Qi2, and thus MCi = 10 + Qi. They face a market demand curve of P = 220 – (QA + QB). a. Assume firm A chooses quantity first. Frim B observes this choice and then chooses its own quantity. What is Frim B's profit as a function of QA and QB? b. Firm B has MRB = 220 – 2QB – QA. What is firm B’s best response to an arbitrary QA selected by firm A? c. Given that firm A expects firm B’s best response, what is firm A’s profit as a function of QA? (Hint: the only unknown variable in the profit function should be QA) d. Firm A has MRA = 150 – 4QA/3. What are the equilibrium QA and QB selected in this game? e. What is the equilibrium price, and how much profit does each firm collect?
