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The platypus is a shy and secretive animal that does not breed well in captivity. But two breeders, Sydney and Adelaide, have discovered the secret to platypus fer- tility and have effectively cornered the market. Zoos across the globe come to them to purchase their output; the world inverse demand for baby platypuses is given by P=1,000-20, where Q is the combined output of Sydney (qs) and Adelaide (qA).s quide a. Sydney wishes to produce the profit-maximizing mquantity of baby platypus. Given Adelaide's choice of bb output, 9A, write an equation for the residual demand faced by Sydney. ceutilong C. b. Derive Sydney's residual marginal revenue curve. Assume that the marginal and average total cost of ivou raising a baby platypus to an age at which it can be 0 sold is $200. Derive Sydney's reaction function.

The platypus is a shy and secretive animal that does not breed well in captivity. But two breeders, Sydney and Adelaide, have discovered the secret to platypus fer- tility and have effectively cornered the market. Zoos across the globe come to them to purchase their output; the world inverse demand for baby platypuses is given by P=1,000-20, where Q is the combined output of Sydney (qs) and Adelaide (qA).s quide a. Sydney wishes to produce the profit-maximizing mquantity of baby platypus. Given Adelaide's choice of bb output, 9A, write an equation for the residual demand faced by Sydney. ceutilong C. b. Derive Sydney's residual marginal revenue curve. Assume that the marginal and average total cost of ivou raising a baby platypus to an age at which it can be 0 sold is $200. Derive Sydney's reaction function.

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter10: Monopolistic Competition And Oligopoly
Section: Chapter Questions
Problem 20P: May and Raj me the only two growers who provide organically grown corn to a local grocery store....
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10. The platypus is a shy and secretive animal that does not breed well in captivity. But two breeders, Sydney and Adelaide, have discovered the secret to platypus fer- tility and have effectively cornered the market. Zoos across the globe come to them to purchase their output; the world inverse demand for baby platypuses is given avby P=1,000-20, where Q is the combined output of blu Sydney (qs) and Adelaide (qA). vide a. Sydney wishes to produce the profit-maximizing quantity of baby platypus. Given Adelaide's choice of output, 9A, write an equation for the residual demand faced by Sydney. 19125 non c. ab. Derive Sydney's residual marginal revenue curve. Assume that the marginal and average total cost of raising a baby platypus to an age at which it can be sold is $200. Derive Sydney's reaction function. d. Repeat steps (a), (b), and (c) to find Adelaide's reac- tion function to Sydney's output choice. 18 e. Substitute Sydney's reaction function into Adelaide's to solve for Adelaide's profit-maximizing level of output. Then use your answer to find Sydney's profit-maximizing level of output. f. Determine industry output, the price of platypus, and the profits of both Sydney and Adelaide. g. If Adelaide were hit by a bus on her way home from work, and Sydney were to become a monopolist, what would happen to industry quantity, price, and profit? us bisn
Transcribed Image Text:10. The platypus is a shy and secretive animal that does not breed well in captivity. But two breeders, Sydney and Adelaide, have discovered the secret to platypus fer- tility and have effectively cornered the market. Zoos across the globe come to them to purchase their output; the world inverse demand for baby platypuses is given avby P=1,000-20, where Q is the combined output of blu Sydney (qs) and Adelaide (qA). vide a. Sydney wishes to produce the profit-maximizing quantity of baby platypus. Given Adelaide's choice of output, 9A, write an equation for the residual demand faced by Sydney. 19125 non c. ab. Derive Sydney's residual marginal revenue curve. Assume that the marginal and average total cost of raising a baby platypus to an age at which it can be sold is $200. Derive Sydney's reaction function. d. Repeat steps (a), (b), and (c) to find Adelaide's reac- tion function to Sydney's output choice. 18 e. Substitute Sydney's reaction function into Adelaide's to solve for Adelaide's profit-maximizing level of output. Then use your answer to find Sydney's profit-maximizing level of output. f. Determine industry output, the price of platypus, and the profits of both Sydney and Adelaide. g. If Adelaide were hit by a bus on her way home from work, and Sydney were to become a monopolist, what would happen to industry quantity, price, and profit? us bisn
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