Suppose there are two firms in a Cournot type setting (choosing quantity simultaneously). How would an increase in the marginal cost of firm 1 change the equilibrium output of firm 1 and firm 2? Depict your answer graphically.
Q: Consider the labour market model studied in class. A(n) ______ in the job separation rate s ______…
A: The labor force refers to the sum of employed and unemployed. The labor market is calculated by the…
Q: 4. Two firms face the following payoff matrix, where each is choosing whether to charge a low or…
A: Pure strategy Nash Equilibrium: Nash equilibrium with 2 players is the strategy profile where both…
Q: f market price is greater than the minimum of AVC but below the minimum of AC, then _____. Group of…
A: A firm makes a profit when the price is greater than the minimum AC A firm makes zero economic…
Q: What is the role of the Fed and the FOMC in the U.S. economy? A. The Fed is the world's central…
A: The Federal Reserve System also known as the Federal Reserve or the Fed is the central banking…
Q: The Sisyphean Company's common stock is currently trading for $27.25 per share. The stock is…
A: Growth rate is the rate at which the earning is growing. We have the formula : - P = Dividend /…
Q: A. Jack enjoys a cup of cappuccino every morning, which is made with equal parts of steamed milk (m)…
A: Indifference curve: Indifference curve shows different combinations of 2 goods such that consumer’s…
Q: 1. Draw a effect on and supply minimum (a) cheap low-quality. demand diagram to illustrate the of…
A: The lowest price that can be legally set is known as a minimum price, such as the minimum salary or…
Q: Consider a perfectly competitive market. The industry demand curve is QD = 7-2P. The industry supply…
A: A subsidy is introduced by the government it decreases the price consumers pay and reduces the price…
Q: The table below shows revenue data for different firms producing frying pans. Use the given…
A: Market share is the sale of one company divided by total sales and then multiplied by 100 So ,…
Q: By demonstrating competence in words the theory and evolution of international trade with emphasis…
A: The various explanations for international commerce are merely known as international trade…
Q: Define economies of scale and economies of learning, and provide an example of each. Why are they…
A: Economies of scale are cost benefits that businesses enjoy as a result of efficient manufacturing.…
Q: 1. Open market operations as a monetary tool Suppose that the Federal Reserve buys $6 million worth…
A: When the Federal Reserve buys 6 million dollars government securities from a consumer then its…
Q: The following table contains data for country A for the year 2019. Household purchases of durable…
A: Import is the domestic purchase of foreign goods and services Export is the foreign purchases of…
Q: Give examples of the factors that shift the Aggregate Demand Curve.
A: Aggregate demand is the sum of Consumption, Investment , government spending. So, AD = C + I + G.…
Q: Below is a table of production possibilities for a company that produces soft drink bottles and…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first 3 subparts question for…
Q: Consider the Solow model without technological progress and an economy with the following production…
A: Given information Y=A[Kα+Gα]1/α Here K is private capital and G is public capital Private capital is…
Q: Let Qd stand for the quantity demanded equation, Qs stand for the quantity supplied equation, and P…
A: Here, demand function is given as: Qd=25-2P And, supply function is given as: Qs=15+3P To find: the…
Q: how does transportation address the economic problem of scarcity
A: Scarcity refers to the limited availability of economic resources with the economies. The economic…
Q: 4. Let u denote the unemployment rate, f the job finding rate, and s the separation rate. The law of…
A: We can see how capital per unit of effective labor changes over time by using the law of motion. In…
Q: If you choose two people at random, what is the probability that both have the same blood type?
A: Probability of an event E is given as : P(E) = (number of elements in the event set / number of…
Q: Why does sharecropping continue to exist as opposed to laborers renting land and paying for the rent…
A: For recently liberated individuals, a large number of whom worked a similar land, lived in a similar…
Q: Price and costs (pounds per unit) A Oooo F C+D. D E GH 1 A+B Which area(s) in the above figure shows…
A: For a monopoly, Profit is maximum where MR = MC Consumer surplus is the area below demand curve…
Q: A firm in a perfectly competitive market has a fixed cost of $5 and a MC function of 9X, where X is…
A: In a competitive market , The optimal production level is where P = MC Where , P is the price MC…
Q: Suppose the Australian dollar floats against the US dollar and the demand for Australian dollars in…
A: Equilibrium is where demand equals supply. Demand curve is the graphical representation of demand…
Q: Price OA+B+C OB+C Refer to the figure. When the price is P₁, consumer surplus is OC A 9₂ Question 5…
A: Consumer surplus is the area below demand curve and above price. Consumer surplus is the difference…
Q: data analysis, please show work Here is a table showing the approximate breakdown of blood types in…
A: Probability of an event E is given as : P(E) = (number of elements in the event set / number of…
Q: In 3-5 sentences, evaluate if the United States has been a leader in the global economy in recent…
A: United States is a highly developed market economy which has the largest level of nominal GDP in the…
Q: O Calculate the elasticity of demand at a price of $9. Elasticity = (Round to three decimal places.)…
A: Elasticity of demand refers to responsiveness of quantity demand with respect to change in price…
Q: A consumer’s utility only depends on the consumption of goods A and B according to the following…
A: Budget constraint: given the price of 2 goods and consumer’s income. The budget constraint shows…
Q: Suppose your utility for goods x1 and x2 is represented by the following utility function:…
A: Budget constraint: given the price of 2 goods and consumer’s income. The budget constraint shows…
Q: 1. Obtain a formulation for the coefficient of determination.
A: 1. Coefficient of determination is a measure of the goodness of fit by which we mean how well the…
Q: What types of things are added or subtracted from GDP to form GPI? (Check all that apply) A. +…
A: GDP tracks shifts in the overall level of production throughout the economy. It is a measurement of…
Q: Although tourism has the potential to earn foreign exchange, it carries a great risk of causing…
A: Economy An economy is defined as the production, distribution, and trade of goods and services as…
Q: The Pyro Corporation has outstanding twenty thousand shares of common stock, of which nineteen…
A: Introduction A corporation is a legal entity that is separate and distinct from its owners.A…
Q: 6.27 For each of the following scenarios, state whether an incremental investment analysis is…
A: The benchmark used to assess projects is the minimum acceptable rate of return (MARR), commonly…
Q: In 1992, several European countries had their individual currencies pegged to the ECU (a pre-cursor…
A: a) The graph indicates that when interest rates rise, the money supply will fall and the value of…
Q: How can the theory of duality help policymakers regarding supply-side economics? Discuss.
A: The theory of duality is a very advanced and powerful and important concept. This theory was…
Q: B. Use the public demand schedule above and the following supply schedule to ascertain the optimal…
A: In economics, a demand schedule is a table that shows the quantity demanded of a good or service at…
Q: Suppose the Sunglasses Hut Company has a profit function given by P(q) - 0.01q² +5q - 40, = where q…
A: Profit is measured as the difference between total revenue and total cost. Profit= total revenue -…
Q: Consider the labour market model studied in class. A(n) equilibrium labour market tightness,…
A: The labor force refers to the sum of employed and unemployed. The labor market is calculated by the…
Q: Ten years ago, Johnson Recovery purchased a wrecker for $330, 000 to move disabled 18-wheelers. He…
A: Cost of wrecker 10 years before = 330000 Salvage Value = 25000 Annual revenue = 60000 Interest rate…
Q: Assume that the demand of chocolate of a local producer is given by q = 9-√p in hundreds of…
A: You have posted, multiple-part questions, so as per Bartleby Policy only the first three parts are…
Q: What Causes a Country to Economic Inflation
A: Inflation is the increase in the general price level of the economy.
Q: The chart below gives a firm's total cost of producing different levels of output. The profit…
A: For profit maximization, in a competitive firm the marginal cost should be equal to the marginal…
Q: Consider consumption involving a negative externality. Which of the following is wrong? Group of…
A: Here, it is given that negative externality is associated with the consumption of a good. It implies…
Q: 4. The average price of gasoline was given P77.50 per liter. We computed the average annual rate of…
A: For a given present value (P) the future value (F) is given as: F = P(1+R)t : per annum rate of…
Q: A cost analysis is to be made to determine what, if anything, should be done in a situation offering…
A: The alternative providing the highest net annual worth and the highest rate of return is to be…
Q: The table shows the balance sheets for the Federal Reserve Bank of New York and Wells Fargo. The Fed…
A: When the Fed sells securities to banks then it is termed as open market sales. This is part of…
Q: A computer company produces a $2,000 computer using $1,200 worth of electronic components and $600…
A: Answer to the question is as follows:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Please help me ASAP. I will really appriciate it. Thank you Assume a Nash-Cournot equilibrium. How much output does firm 1 produce? Assume a Nash-Cournot equilibrium and no fixed cost. How much profit does firm 2 make? Now assume a collusive equilibrium. What is firm 1's output?3. Two poultry farms supply companies with chicken feeds. The unit costs of shipping from the farms to the companies are given on the table below. The farm's goal is to minimize the cost of meeting customer's demands. (a) Generate a mathematical model for finding the least cost way of shipping chicken feeds from the farms to the companies. (b) if the demand of company number 2 increased by 3 units. By how much would the costs increase? Show your solution. Ic). Solve the total cost using the solver add-in in excel From Company 1 Company 2 Company 3 Supply Farm A 55 65 80 35 Farm B 10 15 25 50 Demand 10 10 10Mavi and Diesel both make basic blue jeans. The demand curves for the two firms are given by Qm=135,000−3000Pm+1200Pd Qd=154,000−4000Pd+1000Pw suppose it is a price equilibrium for Mavi to set a price of $30 per pair of jeans and Diesel to set a price of $25. What is marginal cost for Mavi What is marginal cost for Diesel
- Suppose the market for fast-food value meals is monopolistically competitive, with many restaurants selling their own brand of food. Assume the restaurants in the industry behave optimally by maximizing profit. The figure to the right represents the market for one monopolistically competitive firm's value meals. How will this figure change as the market moves toward long-run equilibrium? In the long run, O A. the average cost curve and the marginal cost curve will shift up because the firms are currently making profit. O B. the demand curve will shift to the left and become more elastic because the firms are currently making profit. nothing will change because monopolistically competitive markets have barriers to new firms entering. OC. O D. the demand curve will shift to the right and become more elastic because the firms are currently experiencing losses. O E. nothing will change because the firms in this market are breaking even. Price and cost (per value meal) 8.00- 7.60- 7.20 6.80…EOC 17.07 Imagine the potato chip market is made up of two businesses: Jay's potato chips and Leah's stackable potato chips. Each company has just come up with an idea for a new flavour of chip, which it would sell for $3 a bag. Assume that the marginal cost for each new bag of chips is a constant $1 and the only fixed cost is advertising. Each company knows that if it spends $5 million on advertising, it will get 2 million consumers to try its new product. Jay's potato chips' market research suggests that its new flavour does not have any staying power in the market. Even though it could get 2 million consumers to buy the product once, it is unlikely that they will continue to buy the product in the future. Leah's stackable potato chips' research suggests that its product is very good, and consumers who try the product will continue to be buyers over the ensuing year. On the basis of its market research, Leah's stackable potato chips estimates that its initial 2 million customers will…Profit is the incentive that drives our market economy. Firms make production, pricing, andhiring decisions based on their quest for profit. But what happens when a firm discoversthat it can make dramatically higher profits by stopping production altogether? In December2000, due to wild swings in the market for electricity, Kaiser Aluminium faced just such adecision.Kaiser Aluminium had contracted with Bonneville power for all of its electricity needs andfound itself in the unique position of being an electricity consumer and, potentially, anelectricity reseller. By December 2000, Kaiser faced a difficult decision of continuing itscurrent aluminium production and profit levels, or closing the plant to dramatically increaseits profit by simply reselling its electricity.When making production decisions, firms must consider both their costs and revenues. Oneimportant concern for many firms is utility costs. In 1996, Kaiser Aluminium Corporation inSpokane, Washington, entered into a…
- Profit is the incentive that drives our market economy. Firms make production, pricing, andhiring decisions based on their quest for profit. But what happens when a firm discoversthat it can make dramatically higher profits by stopping production altogether? In December2000, due to wild swings in the market for electricity, Kaiser Aluminium faced just such adecision.Kaiser Aluminium had contracted with Bonneville power for all of its electricity needs andfound itself in the unique position of being an electricity consumer and, potentially, anelectricity reseller. By December 2000, Kaiser faced a difficult decision of continuing itscurrent aluminium production and profit levels, or closing the plant to dramatically increaseits profit by simply reselling its electricity.When making production decisions, firms must consider both their costs and revenues. Oneimportant concern for many firms is utility costs. In 1996, Kaiser Aluminium Corporation inSpokane, Washington, entered into a…Profit is the incentive that drives our market economy. Firms make production, pricing, andhiring decisions based on their quest for profit. But what happens when a firm discoversthat it can make dramatically higher profits by stopping production altogether? In December2000, due to wild swings in the market for electricity, Kaiser Aluminium faced just such adecision.Kaiser Aluminium had contracted with Bonneville power for all of its electricity needs andfound itself in the unique position of being an electricity consumer and, potentially, anelectricity reseller. By December 2000, Kaiser faced a difficult decision of continuing itscurrent aluminium production and profit levels, or closing the plant to dramatically increaseits profit by simply reselling its electricity.When making production decisions, firms must consider both their costs and revenues. Oneimportant concern for many firms is utility costs. In 1996, Kaiser Aluminium Corporation inSpokane, Washington, entered into a…Question: Suppose we have a market with two firms who have constant marginal costs and face a linear market demand curve. Will consumers be better off if the firms are competing in a Cournot-type setting or a Stackelberg type setting? Briefly explain.You don't need cost and demand functions to solve this. Explain it theoritically.
- 7. 2 firms are engaged in Bertrand competition. They each face the following cost curve C(Q) = 3Q² +3. Market demand is representated by D(P) = 50 - P. What is the Bertrand Nash equilibrium? Why is this a Nash Equilibrium?In the model of Bertrand Competition, it been found that firms would compete, driving price down to marginal cost so that firms make zero economic profits. This means there are firms essentially behaving as if they are perfectly competitive, even with just two firms. Despite this very clear prediction, evidence of this outcome is not ofter seen, even in markets where it is believed that firms are indeed competing via price. Why might this be? For instance, what assumptions are made about costs of firms and how might things play out if those assumptions fail? What are some things firms could do in this situation to prevent prices from dropping as low as marginal cost, even if the assumptions on costs are true?5. N - Σ Consider a Cournot model in which N firms compete with each other by setting quantities. The market inverse demand function is P = a i=1 qi, where a > 0 and q; is the quantity of firm i. Firm i's cost function is quadratic: q, where c₂ > 0. (a) Suppose N 2. Find the Nash equilibrium. Show which firm produces more in the equilibrium and explain your result. (b) = Suppose N≥ 2 and ci = c for all i. Find the Nash equilibrium. Show whether the firms produce more or less than the constant marginal cost case where the cost function is cqi, with a>c>0.