I ONLY NEED PART (E) PLEASE!
On a market with monopolistic competition, a firm meets the
demand Q
D
= 400 – 4P. The
firm’s marginal cost is given by MC = 40 + 2Q.
A. Which quantity should the firm produce to maximize its profit?
Which is the profit
maximizing price on the market?
B. Draw a figure that shows the firm’s profit maximizing quantity
and price.
C. What is the firm’s long-term profit?
D. Now instead assume the market is a duopoly, and that the total
demand is given by Q
D
=
1600 – 2P. The two firms on the market, Delta and Gamme, have
identical cost functions
TC
D
= TC
G
= 200 + 50Q. The firm’s respective boards have agreed to
collaborate to
maximize their collective profit. What is the profit of Delta and
Gamma if the firms together
agree on which quantity to produce?
E. Gamma’s board doesn’t trust Delta’s board and therefore lays out
a strategy for what
would happen if Delta deviates from the firms’ mutual agreement.
Since Gamma’s chief
economist recently brushed up on his game theory, he’d like to make
use of it immediately.
What would the result matrix that the chief economist would produce
look like, based on your
calculations from part A of this question? As your starting point,
consider that the firms can
choose to produce the agreed-upon quantity from part A, and another
quantity. Also provide
the combinations of strategies that provide the Nash equilibrium
points.
I ONLY NEED PART (E) PLEASE on this one!
I ONLY NEED PART (E) PLEASE! On a market with monopolistic competition, a firm meets the demand Q...
I ONLY NEED PART (E) PLEASE! On a market with monopolistic competition, a firm meets the demand Q D = 400 – 4P. The firm’s marginal cost is given by MC = 40 + 2Q. A. Which quantity should the firm produce to maximize its profit? Which is the profit maximizing price on the market? B. Draw a figure that shows the firm’s profit maximizing quantity and price. C. What is the firm’s long-term profit? D. Now instead assume the...
i just need the answer for "e". Problem 1 (4 points) Knope Industries is a firm that produces miniature model souvenirs with total cost function TC(Q) = 2500 + 50Q +0.02Q2 (e) Sketch a graph with the demand curve, marginal revenue curve, and marginal cost curve, and label the profit-maximizing price and quantity. (1 pt) Problem 1 (4 points) Knope Industries is a firm that produces miniature model souvenirs with total cost function TCQ) = 2500+ 500+ 0.02Q (a) Write...
3. Suppose the firm in monopolistic market faces the following demand function: Q = 5,000 - 125P ; and total cost function TC - 50 +0.00802 a. Write the equation for the inverse demand function. (1 pt) b. Find the marginal revenue function. (1 pt) c. How much output should the manager produce to maximize profit? What price should be charged for the output? (2 pt) d. Calculate the marginal cost function. (2 pt) e. At the output level, how...
11.3 A single firm monopolizes the entire market for Batman masks and can produce at constant average and marginal costs of AC=MC=10: Originally, the firm faces a market demand curve given by Q=60-P a. Calculate the profit-maximizing price-quantity combination for the firm. What are the firm’s profits? b. Now assume that the market demand curve becomes steeper and is given by Q=45-0.5P with the marginal revenue function given by MR=90-4Q: What is the firm’s profit-maximizing price quantity combination now? What...
3. Consider a market of two firms with demand given by P = 200 – Q. Each firm has a constant marginal cost of $20 and fixed costs of $2,000. Competition is characterized by making simultaneous profit-maximizing quantity decisions. a. What will be an individual firm’s quantities and profits if n = 2? n = 3? n = 4? (Make sure to include fixed costs in your profit calculations.) b. Assuming no changes to demand or cost structure, how many...
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...
The market demand curve of a local pizza is QD= 100 − 4P. The total cost curve of Pat’s Pizza Kitchen is TC = 0.5Q2 + Q+5. Assuming Pat’s Pizza is doing business in a competitive industry and the price of the pizza is $10 for all firms. Using Excel to calculate the firm’s total revenue, total cost, and profit for q = 1 to q = 25 in increments of 1. (Note: your answers should be rounding decimals to...
Need only part e,f and g. Need only part e,f and g. Need only part e,f and g. Need only part e,f and g. Need only part e,f and g. Need only part e,f and g. Need only part e,f and g. Need only part e,f and g. Need only part e,f and g. Need only part e,f and g. Need only part e,f and g. Need only part e,f and g. Need only part e,f and g. Need only...
Question 2: A monopolistic firm produces goods in a market where the demand function is P = 43 - 0.3Q and the corresponding total cost function is TC =0.0103 – 0.4Q2 +3Q (a) What can you say about the fixed costs of this firm? (b What can you say about the variable costs of this firm? (c) Find the (non-zero) output for which average cost is equal to marginal cost, and explain the significance of this value. (d Find the...
Use the following to answer questions (7) through (9): A monopolist faces the following market demand: Q = 1000 - P, where Q is quantity demanded and P is the price. Suppose the firm’s total cost is given by: TC = 200Q. Hence, marginal cost equals average total cost equals 200. [7] Absent the ability to price discriminate, the monopolist wishing to maximize profit will produce and sell a quantity equal to: A. 200 B 400 600 800 [8] Absent...