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3. Given that the ith firm has a 20% market share, the elasticity of demand for the industry (nt) equals -1, and the...
If EF is the firm elasticity of demand and EM is the market elasticity of demand,...
If EF is the firm elasticity of demand and EM is the market elasticity of demand, the profit-maximizing markup for a firm operating in a monopolistically competitive industry with Nidentical firms is NEF/ (1 + NEF). NEM O /(1 + NEM). (1 + NEF) / NEF EF O/(1+EF).
A homogeneous good industry is composed of 3 firms. You are given the following information on...
A homogeneous good industry is composed of 3 firms. You are given the following information on output, price and marginal cost of each firm: q, 200 q2-500 93100 p- 50 41.7 c2 29.2 c3 45.8 Remember that for each firm where α, is the market share of firm i and η is the price elasticity of demand. a)Calculate the 2-firm concentration ratio. b)Calculate the Herfindahl index c) Calculate the number equivalent. d) Calculate the Lerner index of ach firm. e...
Please be descriptive. The market demand curve in a commodity chemical industry is given by Q...
Please be descriptive.
The market demand curve in a commodity chemical industry is given by Q 600 - 3P, where Q is the quantity demanded per month and P is the market price in dollars. Firms in this industry supply quantities every month, and the resulting market price occurs at the point at which the quantity demanded equals the total quantity supplied. Suppose there are two firms in this industry, Firm 1 and Firm 2. Each firm has an identical...
3. A market consists of 100 identical firms and the market demand curve is given by...
3. A market consists of 100 identical firms and the market demand curve is given by D(P) = 60 - P. Each firm has a short-run total cost curve STC(q)-0.1+150q2. What is the short-run equilibrium price and quantity in this market? 4. The short-run marginal cost curves of two types of firms in an industry are given as MC1 = 3q and MC2 = 5q respectively. There are 100 firms of each type. If these firms behave competitively, determine the...
Consider a perfectly competitive industry in which each firm i has a total cost function given...
Consider a perfectly competitive industry in which each firm i has a total cost function given by the equation: TC= 128 + 4q+2q^2. Further assume that the industry demand function is given by the following: P = 84 – 2Q. a) Describe the long run market equilibrium. That is, identify the equilibrium price and quantity, output for each firm, the number of firms in the industry and the level of producer and consumer surplus. What is the value of own...
The bicycle industry consists of seven firms. Firms 1, 2, 3, 4 each has 10% market...
The bicycle industry consists of seven firms. Firms 1, 2, 3, 4 each has 10% market share, and firms 5,6,7 each has 20% market share. Using the concentration measures, answer the following questions: (i) Calculate 4-firm concentration ratio for this industry. (ii) Calculate the Herfindahl-Hirschman index (HHI) for this industry. (iii) Now, suppose that firms 1 and 2 merge, so that the new firm will have a market share of 20%. 1) Calculate the post merger I(x) 2) Calculate the...
Problem #4: Own-price elasticity Suppose the market labor demand curve is given by LD = 20-(1/2,W...
Problem #4: Own-price elasticity Suppose the market labor demand curve is given by LD = 20-(1/2,W and the market labor supply curve is given by LS 2 1. Graph the labor demand curve and the labor supply curve on the same graph (with L on the horizontal axis and W on the vertical axis, as we have done in class) 2. Determine the equilibrium employment (L and wage (W in this market 3. Now suppose the government implements a minimum...
A Cournot oligopoly has four firms in the industry. The market price elasticity of demand is...
A Cournot oligopoly has four firms in the industry. The market price elasticity of demand is -2.5 and the marginal cost of production is $200. What is the profit maximizing price, rounded to the nearest dollar? O $200 O $500 5354 $222 More information is needed to answer this question
Problem #4: Own-price elasticity Suppose the market labor demand curve is given by LD 20- (1/2)W...
Problem #4: Own-price elasticity Suppose the market labor demand curve is given by LD 20- (1/2)W and the market labor supply curve is given by LS-2W 1. Graph the labor demand curve and the labor supply curve on the same graph (with L on the horizontal axis and W on the vertical axis, as we have done in class). 2. Determine the equilibrium employment (L") and wage (W") in this market. Now suppose the government implements a minimum wage (WM)...
Problem #4: Own-price elasticity Suppose the market labor demand curve is given by LD-20-(1/2)W and the...
Problem #4: Own-price elasticity Suppose the market labor demand curve is given by LD-20-(1/2)W and the market labor supply curve is given by LS-2 1. Graph the labor demand curve and the labor supply curve on the same graph (with L on the horizontal axis and W on the vertical axis, as we have done in class) 2 Determine the equilibrium employment (L') and wage (W) in this market 3. Now suppose the government implements a minimum wage (WM) of...
If EF is the firm elasticity of demand and EM is the market elasticity of demand, the profit-maximizing markup for a firm operating in a monopolistically competitive industry with Nidentical firms is NEF/ (1 + NEF). NEM O /(1 + NEM). (1 + NEF) / NEF EF O/(1+EF).
A homogeneous good industry is composed of 3 firms. You are given the following information on output, price and marginal cost of each firm: q, 200 q2-500 93100 p- 50 41.7 c2 29.2 c3 45.8 Remember that for each firm where α, is the market share of firm i and η is the price elasticity of demand. a)Calculate the 2-firm concentration ratio. b)Calculate the Herfindahl index c) Calculate the number equivalent. d) Calculate the Lerner index of ach firm. e...
Please be descriptive.
The market demand curve in a commodity chemical industry is given by Q 600 - 3P, where Q is the quantity demanded per month and P is the market price in dollars. Firms in this industry supply quantities every month, and the resulting market price occurs at the point at which the quantity demanded equals the total quantity supplied. Suppose there are two firms in this industry, Firm 1 and Firm 2. Each firm has an identical...
3. A market consists of 100 identical firms and the market demand curve is given by D(P) = 60 - P. Each firm has a short-run total cost curve STC(q)-0.1+150q2. What is the short-run equilibrium price and quantity in this market? 4. The short-run marginal cost curves of two types of firms in an industry are given as MC1 = 3q and MC2 = 5q respectively. There are 100 firms of each type. If these firms behave competitively, determine the...
Problem #4: Own-price elasticity Suppose the market labor demand curve is given by LD = 20-(1/2,W and the market labor supply curve is given by LS 2 1. Graph the labor demand curve and the labor supply curve on the same graph (with L on the horizontal axis and W on the vertical axis, as we have done in class) 2. Determine the equilibrium employment (L and wage (W in this market 3. Now suppose the government implements a minimum...
A Cournot oligopoly has four firms in the industry. The market price elasticity of demand is -2.5 and the marginal cost of production is $200. What is the profit maximizing price, rounded to the nearest dollar? O $200 O $500 5354 $222 More information is needed to answer this question
Problem #4: Own-price elasticity Suppose the market labor demand curve is given by LD 20- (1/2)W and the market labor supply curve is given by LS-2W 1. Graph the labor demand curve and the labor supply curve on the same graph (with L on the horizontal axis and W on the vertical axis, as we have done in class). 2. Determine the equilibrium employment (L") and wage (W") in this market. Now suppose the government implements a minimum wage (WM)...
Problem #4: Own-price elasticity Suppose the market labor demand curve is given by LD-20-(1/2)W and the market labor supply curve is given by LS-2 1. Graph the labor demand curve and the labor supply curve on the same graph (with L on the horizontal axis and W on the vertical axis, as we have done in class) 2 Determine the equilibrium employment (L') and wage (W) in this market 3. Now suppose the government implements a minimum wage (WM) of...
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