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Jack and Annie are the only sellers of otters in a three-state area. The inverse market...
5. (10 points) Jack and Annie are the only sellers of otters in a three-state area....
5. (10 points) Jack and Annie are the only sellers of otters in a three-state area. The inverse market demand for otters is given by P = 100-0.5Q, where Q = the total quantity offered for sale in the marketplace. Specifically, Q = 4 + 4A, where q, is the amount of otters offered for sale by Jack and qa is the amount offered for sale by Annie. Both Jack and Annie can produce otters at a constant marginal and...
Suppose that the inverse market demand for a commodity is given by P = 240 Q...
Suppose that the inverse market demand for a commodity is given by P = 240 Q The cost curves of the three firms which could serve this market are TC,(a) 30q +300 and TC2() (d) Suppose that firms engage in Stackelberg rather than Cournot competition. Firm 1 moves first by choosin its output level. After Firm 1 has chosen its output level, Firm 2 observes ql and chooses its output leve Find the subgame-perfect Nash equilibrium of the Stackelberg game....
Problem 4. Three firms operate in an oligopoly market with inverse demand function given by D(Q)a...
Problem 4. Three firms operate in an oligopoly market with inverse demand function given by D(Q)a Q, where Q- 1 42 +q3 and q, represents the quantity produced by firm i. Each firm has constant marginal cost of production c and no fixed cost, assume that 0<c<a. The firms compete in the market by choosing quantities in the following way. Firm 1, the industry leader, chooses gi20. Firms 2 and 3 both observe qi. Firm 2 then chooses q2 2...
Suppose that the (inverse) market demand function for wax paper is P=400-2Q where Q is total...
Suppose that the (inverse) market demand function for wax paper is P=400-2Q where Q is total industry output. There are only two firms, Firm1 and Firm 2, that produce wax paper. Thus, Q=q1+q2. Each firm has no fixed cost but a constant marginal cost of production equals $40. (a) Suppose that the two firms decide to form a cartel. Calculate the output quantity for Firm 1 (b) Suppose that the two firms decide to form a cartel. Calculate the profit...
Suppose the inverse demand curve for a commodity in a perfectly competitive market takes the functional...
Suppose the inverse demand curve for a commodity in a perfectly competitive market takes the functional form: P (Q) = -.1Q + 10. Additionally, the firm’s marginal cost (MC) takes the following functional form: MC = 4 + 2Q. Recalling that a perfectly competitive firm is a price-taker in the market and its profit-maximizing output level (Qe) is always found by equating its price with its marginal cost: P = MC. Given all this, how much output (Qe) should the...
Suppose there are two firms, 1 and 2, competing in quantity. The market demand is p...
Suppose there are two firms, 1 and 2, competing in quantity. The market demand is p = 15-(q1 +q2), where q1 and q2 are the quantities produced by rms 1 and 2. Both rms have constant marginal cost c1 = c2 = 3. (a) [10] Find the Cournot equilibrium of this market. Compute the consumer surplus in equilibrium. b) Now suppose firms 1 and 2 merge, so that they become a monopolist with demand function p = 15 ? q,...
Please Answer Part 2. The market for fabric has only one producer. Assume that daily market...
Please Answer Part 2. The market for fabric has only one producer. Assume that daily market demand for fabric is y = 100,000 - 100p, where y denotes the quantity and p denotes the unit price. Also assume that producing y units of fabric costs 100y. 1. How many units of fabric should the producer produce and sell in order to maximize profits? Calculate the profit-maximizing price and the profit. 2. Now suppose that to produce one unit of fabric...
3. The market illustrated below has inverse demand p(Q) = 130 - 3Q and industry-wide marginal...
3. The market illustrated below has inverse demand p(Q) = 130 - 3Q and industry-wide marginal cost MCQ) = 10 + 2Q. If production is competitive, this is the market (inverse) supply curve. If production is consolidated under a monopolist, this is the monopolist's MC curve. a. Suppose there is a monopolist. Explain how marginal revenue for a monopolist is different than for a firm under perfect competition. Then derive the profit-maximizing market outcome (including the monopoly price and quantity...
Question 2: Simultaneous quantity choiceTwo firms F1 and F2 produce a homogeneous product and compete on...
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...
can I get help please A firm under perfect competition has the following inverse demand function...
can I get help please
A firm under perfect competition has the following inverse demand function given by Q=210-3P and it costs $50 to provide an extra unit. (a) Write the equation representing the demand function (1 mark) (b) What is the firm's marginal revenue? (4 marks) (c) What is the profit maximizing quantity? (5 marks) Suppose the industry had only one firm faced with the demand curve faced in part (a) of question 3. How would output price and...
5. (10 points) Jack and Annie are the only sellers of otters in a three-state area. The inverse market demand for otters is given by P = 100-0.5Q, where Q = the total quantity offered for sale in the marketplace. Specifically, Q = 4 + 4A, where q, is the amount of otters offered for sale by Jack and qa is the amount offered for sale by Annie. Both Jack and Annie can produce otters at a constant marginal and...
Suppose that the inverse market demand for a commodity is given by P = 240 Q The cost curves of the three firms which could serve this market are TC,(a) 30q +300 and TC2() (d) Suppose that firms engage in Stackelberg rather than Cournot competition. Firm 1 moves first by choosin its output level. After Firm 1 has chosen its output level, Firm 2 observes ql and chooses its output leve Find the subgame-perfect Nash equilibrium of the Stackelberg game....
Problem 4. Three firms operate in an oligopoly market with inverse demand function given by D(Q)a Q, where Q- 1 42 +q3 and q, represents the quantity produced by firm i. Each firm has constant marginal cost of production c and no fixed cost, assume that 0<c<a. The firms compete in the market by choosing quantities in the following way. Firm 1, the industry leader, chooses gi20. Firms 2 and 3 both observe qi. Firm 2 then chooses q2 2...
3. The market illustrated below has inverse demand p(Q) = 130 - 3Q and industry-wide marginal cost MCQ) = 10 + 2Q. If production is competitive, this is the market (inverse) supply curve. If production is consolidated under a monopolist, this is the monopolist's MC curve. a. Suppose there is a monopolist. Explain how marginal revenue for a monopolist is different than for a firm under perfect competition. Then derive the profit-maximizing market outcome (including the monopoly price and quantity...
can I get help please
A firm under perfect competition has the following inverse demand function given by Q=210-3P and it costs $50 to provide an extra unit. (a) Write the equation representing the demand function (1 mark) (b) What is the firm's marginal revenue? (4 marks) (c) What is the profit maximizing quantity? (5 marks) Suppose the industry had only one firm faced with the demand curve faced in part (a) of question 3. How would output price and...
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