Two firms competing on output choice face the following market demand curve P=30-Q where Q=q1+q2 and their cost functions are TC1=10q1 and TC2=20q2. What are the equilibrium prices of firm 1 and 2 respectively * 0;10 O None of the above O 6.67;3.33 3.33;6.67 O 10;0
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- for a certain product, if the number of units that gives maximum revenue is 300 units, the number of units that gives maximum profit is 250 units and each 1000 units comsumes 5000 dollers of raw materials and a sunk cost of 2000 dollers for the whole number produced. then the selling price equation is O a. p=30 05D O b. p=30 06D Oc. p=50 05D O d. p-42 07D O e. p=30_03D1. Suppose you are the economic adviser ofa company producing three brands of mobile pnones;Nokia 10, Samsung X and iPhone 7. Suppose further that, your company currently sells 120units of iPhone Z at e800 per unit, 150 units of Samsung X at e800 per unit and 200 units ofNokia 10 at e100 per unit, but in a bid to maximize profit, the company's managing directorproposes an increase in price of Samsung X from e800 to e1000 per unit for which quantitydemanded is anticipated to fall from 150 to 100 units; iPhone Z from e800 to e 1200 per unitfor which quantity demanded is anticipated to fall from 120 to 100 units; and Nokia 10 from100 to 200 per unit for which quantity demanded is expected to fall from 200 to 100 unitsUsing the mid-polint formula. compute the price elasticity of demand for each brand.From your answer in i, what is the type and economic interpretatiom of each brand'sii.value of elasticity.2. Briefly explain any three key features of a Perfect Competitive and a Monopolistic…Consider the diagram at the right depicting the revenue and cost conditions faced by a monopolistically competitive firm. 40- What are the total revenues experienced by this firm? $ 2800 35- MC What are the total costs experienced by this firm? S 2800 ATC What are the economic profits experienced by this firm? S0. This firm is more likely in long -run equilibrium because 22 O A. economic profits will stimulate entry (which is a long-run change). O B. normal profits will stimulate entry (which is a long-run change). 18 MR O C. normal profits will not stimulate entry (which is a long-run change). D 15- O D. None of the above are true. 100 160 10- 40 80 120 160 200' 240' 280 Quantity (units per day) Revenues and Costs ($ per unit)
- Kate and Alice are small-town ready-mix concrete duopolints. The market demand tunction is o- 20,000 - 200Pwhere Pis the price of a cubic yard of concrete and Ois the number of cubic yards demanded per year. Marginal cost is sa0 per cubic yard. Suppose Kate onters the market first and chooses her output belore Alice. What is the difference in Alice's profit when Kata enters the market tirst, compared to when they simultanecusly select ther outputa? When Kate entors the markat first, Alice's profit is $3,888.a0 lower. O When Kate enters the market fest, Alice's profit is 513,333.33 lower. O When Kate enters the market first, Alice's profit is $5,000 lower. O When Kate onters the market first, Alice's proft is $1.111.11 higher,O 4 QUESTION 9 In the Bertrand model, suppose that each firm has a marginal cost of £10 and that firm 1 sets a price of £9.99, which of the following a best-response for firm 2? Click all the correct answers. O £9.99 O £10.01 O £11.01 O E10.00 O £9.98Question 2 AnimoSpace Support ? Given the perfect competitor firm's supply curve below, what is the shutdown price? P(cost) MC AC 80 AVE 70 60 50 40 30 20 (10,10) 10 10 20 30 40 50 60 70 80 90 100 110 12 Qty Break-even quantity: Shutdown price: O 50 O 70 O 35 IS O 80 O 5 a Question 3 Which of these market structures is not correctly described? Monopolistic Nliaonoly Mononolhe o search
- bok ences Suppose Toyota and Honda must decide whether to make a new breed of side-impact airbags standard equipment on all models. Side-impact airbags raise the price of each automobile by $1,000. If both firms make side-impact airbags standard equipment, each company will earn profits of $1.6 billion. If neither company adopts the side-impact airbag technology, each company will earn $0.6 billion. If one company adopts the technology as standard equipment and the other does not, the adopting company will earn a profit of $2.5 billion and the other company will earn $-0.8 billion. If you were a decision maker at Honda, would you make side-impact airbags standard equipment? SO No O There is not enough information to answer the question. O Yes 4 If Toyota and Honda were able to cooperate, would you expect this same outcome? O No O There is not enough information to answer the question. O YesMN 00 25 Price %24 Question 42 of 60 > For the monopolistically competitive firm in the following figure, the profit-maximizing price is and the quantity is MC ATC 20. 16 Demand MR 40 Quantity O $20: 25 O $16: 25 O $32; 25 O $20; 40 10:55 PM 74 F 12/12/2021 Ins prt sc delete home 12 Oy 114 dn 6d pue 144 91 & backspace wnu lock 5. 7. 4. home 6d T. enter H. pause ↑ shift 2. LE ctrl alt SutFigure 16-3 This figure depicts a situation in a monopolistically competitive market. MC ATC Demand 100 O Refer to Figure 16-3. How much profit will the monopolistically competitive firm earn in this situation? O so O $80 O $200 O $400
- QUESTION 8 Two firms with the same (constant) marginal costs are engaging in Bertrand competition. One of the companies exits the industry. As a a consequence, the price for the other firm increases by 50%. What is the elasticity of demand at the new market price? O4 O 3 O 2.5 O More information is needed. 02Two firms competing about price face the following demand curves q1=20-p1+p2 and q2=20+p1-p1 and TC1=10q1 and TC2=10q2. Determine the equilibrium price for each firm * O 20 O None of the above O 30 О 15 О 10Assuming you are the managing director of a firm that produces three goods: A, Band C. The price elasticity of demand for A is 1.2, for B it is 1.00 and for C it is 0.75.It is known that he firm is experiencing serious cash flow problems and you have toincrease total revenue as soon as possible. If you were in a position to set the pricesfor these goods, what would be your pricing strategy for each product