I need step by step solution to the following this question asap .I have limited time so please do it quickly with detailed explanation
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Answer: 3
I need step by step solution to the following this question asap .I have limited time...
Question . Consider the market for the homogenous good “space dust” with the following inverse demand function: ?(?) = 12 − ? where y is total sold quantity of the good on the market and ?(?) is the price for which it sells. Due to Imperial regulations and restrictions there are only two firms on this market, “Lando inc” and “Jabba enterprises”, who both produce this homogenous good. Lando’s cost function is ?? (?? ) = 2?? and Jabba’s cost...
I need step by step solution to the following this question asap
.I have limited time so please do it quickly with detailed
explanation
thanks in advance/Ha
Consider a market with 2 firms where the inverse demand function is given by p=56–24 , where q=9z+q2 . Each firm has a cost function given by c(qi)=8qi , where i={1,2}. a) Compare price level, quantities and profits in this market calculating the Cournot equilibrium and the Stackelberg equilibrium. Draw a graph with...
I need step by step solution to the following this question asap
.I have limited time so please do it quickly with detailed
explanation
thanks in advance/Ha
Consider a market with 2 firms where the inverse demand function is given by p=56–24 , where q=9z+q2 . Each firm has a cost function given by c(qi)=8qi , where i={1,2}. a) Compare price level, quantities and profits in this market calculating the Cournot equilibrium and the Stackelberg equilibrium. Draw a graph with...
I need step by step solution to the following this question asap
.I have limited time so please do it quickly with detailed
explanation
thanks in advance/Ha
a) A monopoly has the inverse demand function P=200-Q and the cost function C=40 Q . Set up the profit maximization problem and solve for the profit- maximizing price and quantity. How much will the monopoly raise the price if it faces a quantity tax, t=40 ? Show the (additional) welfare loss of...
In Little Town, there are two suppliers of mineral water: A and B. Mineral water is considered a homogenous good. Let pA and pB denote the price and qA and qB the quantity sold by firms A and B, respectively. Suppose that the municipality provides all the water for free, so firms don't bear any production cost. The inverse demand function for mineral water is given by P=12-1/3Q where Q=qA + qB denotes the aggregate supply of mineral water. Suppose...
I need step by step solution to the following this question asap
.I have limited time so please do it quickly with detailed
explanation
thanks in advance/Ha
a) A monopolist faces two totally separated markets with inverse demand p=100 – 9a and p=160 – 298 respectively. The monopolist has no fixed costs and a marginal cost given by mc=q . Find the profit maximizing total output and how much of it that is sold on market A and market B...
EC202-5-FY 10 9Answer both parts of this question. (a) Firm A and Firm B produce a homogenous good and are Cournot duopolists. The firms face an inverse market demand curve given by P 10-Q. where P is the market price and Q is the market quantity demanded. The marginal and average cost of each firm is 4 i. 10 marks] Show that if the firms compete as Cournot duopolists that the total in- dustry output is 4 and that if...
I need step by step solution to the following this question asap
.I have limited time so please do it quickly with detailed
explanation
thanks in advance/Ha
Kim has the utility function U(x1,x2) = NU a) Set up the Lagrangian and derive an expression for the marginal rate of substitution and calculate the Marshallian demand for both goods. (9p) b) Are both goods normal goods to Kim? (4p) c) Calculate the price elasticity of demand for both goods at prices...
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Firm A and Firm B are two companies that manufacture identical prod- ucts, and are the only firms in the market for that good. The marginal cost of producing a unit of the good is $20, and there are no fixed costs. The inverse market demand for their product is P = 140 – Q, where Q is the number of units, and P is the price. (a) What is the...
4. For this question you will be analyzing a market where firms compete under Bertrand com petition. That is, firms will strategically compete by selecting prices in order to maximize their profit. For this market, let the market demand be o 50-2p (a) Suppose firm I has a marginal cost of 10 and firm 2 has a marginal cost of 5. What is the equilibrium price p., what are the equilibrium quantities the firms produce q1-q2, and what is the...