Suppose that the market demand for facial mud packs are given as follows: P = 2.200 - Q. Mud packs can be produced at no cost. Determine the level of output that would be produced by each firm in a cournot duopoly in the long run. Calculate th price charged for mud packs. Show all calculations.
Q: Question 21 If. using the same factors of production, France is able to produce more wine than…
A: The ability of an economy to produce a specific good or service at a lower opportunity cost than its…
Q: How China became the production center of the world? Explain using Comparative Advantage theory of…
A: A country's comparative advantage in economics is its ability to manufacture a specific product or…
Q: The graph shows the market for pesticide. The firm that produces the pesticide dumps waste into a…
A: In economics, market equilibrium is a situation in which economic forces such as supply and demand…
Q: 3. The components of marginal revenue Manuel's Fire Engines is the sole seller of fire engines in…
A: Demand curve shows a negative relationship between price and quantity demanded. Decrease in price…
Q: 1. In a simple economy, people consume only 2 goods, food and clothing. The market basket of goods…
A: Answer: (a). Percentage increase in price of food=Price of food2003-Price of food2002Price of…
Q: Consumption expenditure Investment Government expenditure on goods and services Exports of goods and…
A: Gross Domestic Product (GDP) is defined as the monetary value of all final goods and services…
Q: Jane Doe has the following assets: $100 in her wallet $800 in…
A: M1 includes:- 1) Coin and banknotes are forms of cash.2) Demand deposits.3) Traveler's cheques4)…
Q: what advantages did adopting a single currency, the euro, give Europeans?
A: When talking about a single currency, it is the situation when two or more countries are using same…
Q: 40. When we want to measure wage inflation in the labor market, we use the: O Consumer Price Index O…
A: Option 3rd is correct. 1st option - incorrect Consumer price index is used to measure change in…
Q: A. Modified TRUE of FALSE. Write T if the statement is TRUE and CHANGE the underline word if the…
A: Commerce:- The transfer of commodities, services, and anything of worth among firms or organizations…
Q: A negative net export (import is greater than import) can be offset by a positive net factor income.…
A: When talking about international trade, balance of payment account is used to make a record of…
Q: impacts of marginal utility. Imagine that you are a seller of phones: How can you increase the…
A: Marginal Utility: When an individual consumes something then by consuming the extra amount of goods…
Q: Can the Philippines benefit from the UN Sustainable Development Goals?
A: There are 17 sustainable development goals, many countries are adopting them in order to make the…
Q: Question 10 If look at the indifference curves and budget constraint for two goods, X and Y, we can…
A: PLEASE FIND THE ANSWER BELOW. INDIFFERENCE CURVE: An indifference curve shows a combination of…
Q: Some critics argue that under the current deposit insurance regulations, neither insured depositors…
A: Deposit insurance is a form of insurance that protects depositors against losses in the event of a…
Q: You are given the following consumption function: C = RM150 million + 0.75Yd Based on the above…
A: Autonomous consumption is the consumption when you income is zero.Hence when we do not get income we…
Q: Complete the numbered boxes on the following table, by writing the word or words needed to…
A: The central bank uses the monetary policy to check and balances the inflation rate, interest rate,…
Q: 6. Describe how public choice economics model the behavior of various political actors (citizens,…
A: "Economic tools" are employed in public choice theory to answer "classic political science problems"…
Q: Calculate the perpetual equivalent annual cost (years 1 to ∞o) of $950,000 now and $825,000, 5 years…
A: The correct answer is given in the second step.
Q: c. total reserves. $ 3000 d. excess reserves. $ e. Calculate the cumulative change in the banking…
A: C. 3,00,000 pennies=$3,000 Total reserve= Deposit * reserve requirement Total reserve= 3,000 *5%…
Q: Assume Tom's utility for tacos is as follows: Tom's utility from consuming tacos Total Utility 0 35…
A: Answer: The formula to find the marginal utility (MU) from 3rd taco is given below: MU3rd…
Q: Q3. For a linear demand curve q(p)-20-2p. (1) calculate the price elasticity at p-0, 2, 5, 8, 10;…
A: Answer; Answer 3 I)q=20-2p ∆q/∆p=-2 Elasticity formula=(p/q)(∆q)/∆p) Elasticity=(p/q)(-2) p…
Q: 5. Monopoly outcome versus competition outcome Consider the daily market for hot dogs in a small…
A: In a competitive market, profit is maximised at a point where price is equal to marginal cost. In a…
Q: 4. Ellen borrowed P100,000 from a local bank at 10% annually. She must pay back the loan in five…
A: Given; Amount borrowed= P100000 Interest rate= 10% annually Time period= 5 years Number of…
Q: Question 3 This schedule relates to celebration of 25th birthday of Lovina, a student of Valley View…
A: Formula for MU(Q2) = TU(Q2) - TU(Q1)
Q: Monopoly has a fixed cost FC=10 and her MC=4. The first group of customer has demand Q=20-0.5P, the…
A: Marginal costs are a function of the total cost of production, which includes fixed and variable…
Q: Question 22 Refer to Figure 3-1 in Question 16. Assume that Tom has an income of $50. Based on the…
A: Answer: Given, Price of tacos = $5 Total income = $50 Let us check whether the cost of optimal…
Q: Prospect Y = ($6, 0.25 ; $15, 0.75) If Will's utility of wealth function is given by u(x)=x0.25,…
A:
Q: Michigan currently has a 1% unemployment rate, which is 50,000 unemployed workers. After stagnant…
A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…
Q: 3. What are the differences between the internal and external economies of scale?
A: When it increases its level of output, it often experiences some cost advantage, referred to as…
Q: Question 2 For which of these goods would the market demand be more elastic, jeans or pants? Why?…
A: Elasticity is the concept which represents the change in the quantity demanded of a good due to…
Q: Question 1 The formula for calculating GDP using the expenditures method is GDP = C+I+G+(X-I)
A: Ans. 1. GDP is the value of the final goods and services produces within an economy during a given…
Q: A government monument is being built that is expected to last forever. The first cost is $7,000,000.…
A: Below I attached complete answer
Q: SCENARIO 3 Two samples each of size 25 are taken from independent populations assumed to be normally…
A:
Q: For example, the sticky-wage theory asserts that output prices adjust more quickly to changes in the…
A: Since in the short run the supply curve is directly proportional to the price level hence, The…
Q: What does a declining national debt indicate? Group of answer choices The government is…
A: The sum of all obligations due by a country's government is referred to as the national debt.Bonds…
Q: now the impact of the increase in government purchases on the interest rate by shifting one or both…
A: Answer - Monetary Policies :- These are the policies which is used by the Central Banks of…
Q: Which of the following is an injection in the circular flow of income? O Investment O Taxes O…
A: The injections are economic factors (or variables) that help in increasing the output level in an…
Q: 1. The table below uses data for the year 2003 provided by the BLS and adjusted to be comparable to…
A: The correct answer is given in the second step.
Q: Recommend valid changes Livestock Wealth can make to their mission statement to make it more…
A: Economics is the study of how the scarce resources of society are exploited. It is a social science…
Q: 360 315 270 225 180 135 90 45 S SMC MR D 0 1500 4500 7500 10500 The figure above shows the demand…
A: Profit maximizing or loss minimizing output is produced where MR=MC.
Q: The following six mutually exclusive projects have a life of 10 years. Use the rate of return method…
A: Given cash flow MARR=12% N=10 years
Q: Businesses wanted to reduce their cost to the minimum without compromising the product quality and…
A: Economies of scale:- Economies of scale can be explained as the cost advantages that businesses gain…
Q: warranty expired after 3 years of ownership. The cost of periodic mainten $800 every 2 years. If the…
A: First we compute Calculate the present worth of the repair and maintenance. Second we compute…
Q: Question 11 When leakages are greater than injections the economy will
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Suppose that a firm is producing in the short run with output given by: Q=64L-L² The firm hires…
A: Answer; The firm should optimally use 31.44 units of labor.
Q: 10. Suppose economists have found current job separation rate (s) and job finding rate () in the US…
A: * SOLUTION :- (5) Given that , The job seperation rate (s) = 5% = 0.05 The job finding rate…
Q: Components Wages and salaries Rent, dividend & interest Companies profits Depreciation Transfer…
A:
Q: What are some of the impacts that the National Labor Relations Act have on employment in the United…
A: The demand curve for labour, under the ceteris paribus assumption, shows the amount of labor…
Q: a. the biggest increase in output? Consensus Hybrid (C) Keynesian (A) Monetarist (B) b. the biggest…
A: AS curve represents the total quantity of output.
Suppose that the market demand for facial mud packs are given as follows: P = 2.200 - Q.
Mud packs can be produced at no cost. Determine the level of output that would be produced by each firm in a cournot duopoly in the long run. Calculate th price charged for mud packs. Show all calculations.
Step by step
Solved in 2 steps
- Suppose that the market demand for facial mud packs are given as follows: P = 2,200 – Q. Mud packs can be produced at no cost. Determine the level of output that would be produced by each firm in a Cournot duopoly in the long run. Calculate the price charged for mud packs. Show all calculationsThe market for dark chocolate us characterized by Cournot duopolists - Honeydukes and Wonka industries. The market demand for dark chocolate is: P = 8 - 0.005Qd where P is the price per bar in dollars and Qd is dark chocolate's daily quantity demanded in bars (use qh to represent the quantity of dark chocolate sold by Honeydukes and qw to represent the quantity of dark chocolate sold by Wonka Industries). Honeydukes has a constant marginal cost of $2.50 per bar, while Wonka Industries has a constant marginal cost of $3.00 per bar. The firms move simultaneously in choosing their profit-maximizing quantity of output. a. Given the firms move simultaneously, what is the equation for Honeydukes' reaction function with qh expressed as a function of qw? b. Given the firms move simultaneously, what is the equation for Wonka's reaction function with qw expressed as a function of qh? c. What quantity of dark chocolate will each firm produce in equilibrium and what price will be established for a…Suppose a country's mobile phone industry is supplied by only two firms (i.e. an oligopoly). Explain how the presence of two firms affects the price elasticity of demand of each firm's output.
- Consider a Cournot duopoly with the inverse demand P = 260 2Q. Two Örms compete choosing their quantities. Both Örms have constant marginal and average cost MC = AC = 20. Find each firms best response function. Find the Cournot equilibrium. c. Plot the best response curves and illustrate the equilibrium pointTwo Cournot competitors face inverse demand p = 50-Q, where Q = 9₁ +92 is the total output of firms 1 and 2. Both firms have marginal cost of 2. What are the equilibrium output levels q₁ and 92? 16 and 16 25 and 25 20 and 9 36 and 3QUESTION 4: The graph below shows the demand and costs data for a one of firms operating in a market with a highly differentiated product/All underlying work must be shown MC ATC $11.50 $10.00 $9.00 $6.00 D MR 200 400 700 s00 Quantity A) Refer to the graph above. If the firm in the graph above maximizes profit, it will produce units of output and charge price per unit. A) 400; $10 B) 600; $6 C) 900; $9 D) 600; $11.50 B) Refer to the graph above. At the profit maximizing output level, the firm from above will earn: A) zero economic profit. B) $900 total economic profit. C) $2,700 economic profit. D) $2,700 economic loss. C) Refer to your answer above. You can conclude that if there are no barriers to entry: a) new fims will enter this industry in the long run in a search of profit. b) existing firms will exit this industry in the long run because of the short-run losses. c) this industry is in long-run equilibrium, and there are no incentives to enter or exit. d) the price per unit of…
- The market for knitted scarves at a local, weekend farmers' market is a Stackelberg duopoly. Sammy's Scarves acts as the Stackelberg leader and Knitting Nancy as the Stackelberg follower. Both Sammy and Nancy know that the market demand for knitted scarves at the farmers' market is: Q=320-4P where Q is the quantity of knitted scarves demanded and P is the price of a knitted scarf. Solving the market demand for P as a function of Q gives the inverse market demand: P-80-0.25Q. Sammy produces qs knitted scarves, and Nancy produces q knitted scarves. Each incurs a total cost of producing q; knitted scarves of TC (91)= =30+20q Sammy will sell 140 knitted scarves and Nancy will sell 70 knitted scarves at the local, weekend farmers' market.SUB-SECTION B2 13 Electra and Luminux are the only two firms who provide electricity in a local market as a Cournot duopoly. The electricity provided by the two firms is identical and consumers are indifferent about which firm they will purchase electricity from. The market inverse demand for electricity is P = 100 - 2Q, where is the aggregate quantity of electricity produced by the two firms, qe qL. Electra has a marginal cost of 12, while Luminux has a marginal cost of 20. Assume that neither firm has any fixed costs. (a) Determine each firm's reaction curve and graph it. How much electricity will each firm produce in a Cournot equilib- rium? (c) What will the market price for electricity be? How much profit does each firm make? (e) Suppose now that the two firms move sequentially with one of them acting as a Stackelberg leader. Do you expect the outcome to the closer to perfect competition when Electra, or when Luminux, moves first? Explain your answer.What is the homogeneous-good duopoly Cournot equilibrium if the market demand function is Q= 1,800 - 1,000p. and each firm's marginal cost is $0.28 per unit? The Cournot-Nash equilibrium occurs where q, equals and 92 equals (Enter numenic responses using real numbers rounded to two decimai places.) Furthermore, the equilibrium occurs at a price of $ (Round your answer to the nearest penny.)
- Consider the following Stackelberg duopoly. Both firms produce a homogenous good. Firm 1 chooses how much to supply first. Firm 2 chooses how much to supply after observing the quantity supplied by firm 1. The market demand is Q= 100 – 4 P. For firm i, the total cost of production is TC(q) =5q,+2. What is the optimal quantity supplied by firm 12 10 20 30 40 QUESTION 6 Consider the following Stackelberg duopoly. Both produce a homogenous good. Firm 1 chooses how much to supply first. Firm 2 chooses how much to supply after observing the quantity supplied from firm 1. The market demand is Q= 100 - 4P. For firm i, the total cost of production is TC(q) =5q,+2. What is the market clearing price? O 10 O 15 20 O 25Cournot duopolists face a market demand curve given by P = 60 – 1/2Q, where Q is total market demand in units. Each firm can produce output at a constant marginal cost of $15/unit. a) What is the equilibrium price and quantity produced by each firm? b) What if the firm's engaged in Bertrand competition? c) What if one of the firms chose its quantity before its competitor? What is the name for this sort of competition? d) Which of the three forms of competition gives the greatest social surplus?1. Consider two duopolists who each have a constant marginal cost c = e2 = 3 and face inverse demand P = 15 – Q,where Q = Q1 + Q2 is the total output of both firms. 1. Find the Cournot equilibrium quantity for each firm, the resulting market price, and the profits for each firm. 2. Find the Stackelberg equilibrium quantities for each firm, and the price, and the profits for each firm supposing that Firm 1 is the industry leader. 3. Suppose that Firm 2 figures out a way to lower its marginal cost to ez = 0 while firm 1 still has a marginal cost equal to 1: c = 3. How does this affect the Cournot equilibrium quantities, price, and profits? 4. How does this affect the Stackelberg equilibrium (with Firm 1 still as the leader) quantities, price, and profits?
