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There are two auto producers in Karmaa, F1 and F2. The cars they produce are essentially...
There are only two luxury electric car producers in Carmania, Firm 1 and Firm 2. The cars they produce are essentially identical. The market inverse demand function for luxury electric cars in Carmania is given by P = a – bQ, where P is price (in thousands euros); Q market output (in number of cars); and a and b are parameters. Competition in the Carmania auto market works as follows: At the beginning of each year, both firms simultaneously and...
There are only two luxury electric car producers in Carmania, Firm 1 and Firm 2. The cars they produce are essentially identical. The market inverse demand function for luxury electric cars in Carmania is given by P=a−b*Q, where P is price (in thousands euros); Q market output (in number of cars); and α and b are parameters. Competition in the Carmania auto market works as follows: At the beginning of each year, both firms simultaneously and independently decide how many...
Question 2: Simultaneous quantity choiceTwo firms F1 and F2 produce a homogeneous product and compete on the same market. The market price is described by the inverse demand curveP= 11−2Q, where Q is total industry output andPis the market price. To keep things simple, suppose that each firm can produce either 1 or 2 units (these are the only possible choices of production).Further suppose that both firms have a constant marginal cost equal to 2, so that the total cost...
Giocattolo is a profit-maximizing firm producing toy cars, which it can produce and sell in its home country, Italy, and abroad in Spain. The average cost (AC) curve on the following graph represents Giocattolo's cost of producing toy cars within one factory, whether in Italy or in Spain. COST (Dollars per toy car) O 0 10 90 100 20 30 40 50 60 70 80 QUANTITY (Thousands of toy cars) Suppose that at the current market price of toy cars,...
Consider a market in which two firms i = 1,2 produce a homogeneousproduct at constant marginal cost c= 4, facing total demand described by the linear inverse demand curve P= 16−Q. First assume that the firms compete by simultaneously choosing prices a la Bertrand. a. Suppose that F1 expects F2 to set some price p2 above the marginal cost c but below the monopoly price pm. What is F1’s best response BR1(p2) to this price p2? b. What is the...
i need question b please 1. The town of Springfield has two steel producers that pollute the air with Sulfur Dioxide (SO). Their supply curves are shown below, with quantities and kilotons and price per kilo. Producer + Producer B 2 . . . 10 12 # 16 Drano * 12 HM De a. Suppose the price of steel is $8/kho (demand is perfectly elastic). Draw the market supply curve and the equilibrium quantity of steel produced by the two...
The equations represent the demand and supply for silver pendants. The government is considering imposing a $4 per unit tax of buyers of silver pendants. QD= 50,000-2,000P QS= -10,000+2,000P QD (with tax)= 50,000-2,000(P+T) 1. What is the before tax equilibrium price (P) and quantity (Q- in thousands) of pendants? a. P= $50; Q= 10 thousand b. P= $20; Q= 15 thousand c. P= $15; Q= 20 thousand d. P= $10; Q= 30 thousand. 2. Who carries the highest incidence of...
In the market of cars, there are two firms operating. The Industry Demand Curve is a function of the outputs being produced by both firms, and is given as: P = 240−(X1+X2), where X1 and X2 are the outputs of Firm 1 and Firm 2 respectively. The Total Cost faced by Firm 1 is TC1 = 20X1 and by Firm 2 is TC2 = 20X2. Each firm maximizes its own profit by choosing its own output, while taking the output...
Do question 3: Sequential quantity choice please Question 2: Simultaneous quantity choice Two forms F1 F2 produce home product and compete on the same Themat described by the inve c e P-11-20. Whet her output and Pis the market price Top this simple w ow that each firm cam produce either lo units there the coll e c t ion Further power that both firm we ac c etta 2 se that the total cost of fimi-1.2 pedacin i ty...
Imagine you and your friends have created a new prototype of an electric car and you are discussing the possibility of opening a start-up to produce and sell it. Your big shot is represented by the US! Even though it is still a market niche, US electric car demand is high enough to allow you high returns to your investments. To this extent, you start gathering information to be able to draw a production plan. Yet, there is a big...