Find the utility function for a Cournot Duopoly firm if the consumer demand function is Q=a1+bP for some a > 0 and b > 0 rather than Q = a − bP.
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: The project should be executed for options a, b, and d, but not for option c
Q: When a country opens its markets to international trade, if the world price is…
A: FEEL FREE TO ASK FOR CLARIFICATIONS
Q: The following table shows the approximate income distribution for Peru, Bulgaria, and Lithuania in…
A: Detailed explanation: Understanding Lorenz Curves The Lorenz curve is a graphical representation…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: Reference Graph 1 Reference Graph 2. Effect of Tarrif..The green area is the new consumer surplus…
Q: - Draw the long-run aggregate supply curve when potential GDP is $20.5 trillion. Label it.…
A: Reason for the Vertical Line:The LRAS represents the economy's capacity to produce at full…
Q: The Industrial Engineering at Shocker Communications has devised one alternative method involving…
A: To determine the production quantity required for the alternative method to be more economical, we…
Q: A company has predicted EBIT of $40,000 per year and a degree of operating leverage of 1.7 at the…
A: Step 1:Operating Leverage = %change in EBIT / %change in sales => 1.7 = % change in EBIT /…
Q: Question II - Solow Model with Population or Technology Growth Consider the Solow growth model with…
A: Detailed explanation:1. Growth Rate Calculation $\hat{z}$This calculation is derived from the…
Q: Why did Solow model assume At as a black box in economics? Explain in brief.
A: The Solow model, also known as the Solow-Swan growth model, is an economic model of long-run…
Q: 12:42 PM 74 Coal 4 to 9 Natural gas Wind 4 to 10.5 8.6 4.8 to 9.1 8.2 4.5 to 15.5 8.8 Solar National…
A: The document you provided contains two case studies: Case Study 1: Lechricity Cost (LEC)…
Q: Externalities Application-no credit given for answers based outside of course sources Part 2 (16…
A: It appears that the graph you mentioned shows Seher City's supply and demand curve for potatoes. The…
Q: Suppose labor's share of output is 60% and capital's share of output is 40%. If labor grows at a…
A:
Q: 5 CUPS OF COFFEE 4 3 2 K Graph (a) 13 N M 2 3 4 5 6 DONUTS Refer to Figure 2-4, Graph (a).…
A: The graph (a) shows the production possibility frontier (PPF) curve. Now, a production possibility…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A:
Q: Refer to the information provided in Figure 14.7 below to answer the questions that follow. LRPC…
A: Step 1:Unemployment refers to the condition where individuals who are willing and able to work are…
Q: Consider a piece of equipment that has the following cost and benefit estimates, and the interest…
A: Additional Considerations:Although the B/C ratio is a useful tool, it's crucial to take other…
Q: In order for deflation to be occurring, overall prices must be increasing during the period being…
A: Deflation is the opposite of inflation. While inflation refers to a general increase in the price…
Q: Your boss has asked you to evaluate the economic viability of refinancing a loan on your plant's…
A: The objective of this question is to determine if refinancing a loan is economically advantageous…
Q: a) What is the value of the following before AND after tariff? (i) Domestic production (ii)…
A: In summary:Domestic Production: Likely increases after a tariff.Domestic Consumption: Likely likely…
Q: Suppose Jim and Tom can both produce two goods: baseball bats and hockey sticks. Which of the…
A: FEEL FREE TO ASK FOR CLARIFICATIONS.
Q: Item (dollars) GDP (income approach) 7,050 Consumption expenditure 7,300 Indirect taxes less…
A: 1. GDP (expenditure approach):This approach calculates GDP by summing the final expenditures within…
Q: K Click on the table icon that shows the fixed costs, variable costs, and total costs for different…
A:
Q: Analyze the impact of economic growth in a developing country such as Rwanda according to the case…
A: The case study "Rwanda: A Success Story" by USAID (2023) highlights the significant impact of…
Q: Ali's Wheat Production Costs Quantity (bushels) AVC (dollars) ATC (dollars) MC (dollars) 0 — —…
A: The wheat market is composed of many firms selling a homogenous product (wheat). Therefore, Ali is…
Q: 3. The meaning of saving and investment Classify each of the following scenarios listed in the table…
A: Maria buys a new crane for her construction firm.Investment: This falls under investment. When Maria…
Q: Explain all option plz......you will not explain all option then I will give you down upvote...
A: A price floor is a legal minimum price that is set by the government in order to provide the sellers…
Q: Tew History (Official Ox + Bookmarks Profiles Tab Window Help H 4…
A: Approach to solving the question:The image shows a graph representing an economy's equilibrium in…
Q: Edwards and Bell market a single line of home computers, dubbed the XL-98. The master budget for the…
A: Edwards and Bell Budget Variance Analysis: A Detailed ExplanationThis analysis helps us understand…
Q: Plz explain all option ......you will not explain all option then I will give you down upvote...
A: Hope you got your answer.Kindly do rate this helpful ....Thank You
Q: Explain all options compulsory and solve all questions ....you will not solve all questions then I…
A: A. Neither country has an absolute advantage in both goods because the United States can produce…
Q: Figure 9-20 The figure illustrates the market for rice in Vietnam. 16 10 8 4 Price 1,500 2,000 3,000…
A: Step 1:Total economic surplus, also termed total welfare or overall economic welfare, is an economic…
Q: Figure 2-14 23. Refer to Figure 2-14. Given the technology available for manufacturing doghouses and…
A: It is challenging to offer a firm response in the absence of the particular circumstances of Figure…
Q: The following table was generated from the sample data of 10 newborn babies regarding the weight of…
A: Given:CoefficientsIntercept: 20.43 = β0 Mother's weigth: -1.048 = β1Father's weight: -0.934 =…
Q: A monopolist’s inverse demand function is estimated as P = 400 − 2Q. The company produces output at…
A: Answers:a)P=400-2QTR=P×QTR=400Q-2Q^2 MR=∆TR/∆QMR=400-4QQ=Q1+Q2MR=400-4Q1-4Q2 b)For plant 1 MR=MC1…
Q: A recently-installed machine earns the company revenue at a continuous rate of 51000t + 11000…
A: Step 1: first revenue cost for 6 month Step 2: remaining 6 month Step 3: cost of revenue =cost of…
Q: Give explanation also please
A: Imposition of a Tariff:If Universitania imposes a tariff on the chocolate imported from Collegia, it…
Q: Suppose researchers use observational data to study the effect of class size and teacher experience…
A: Step 1:Concept -In this scenario, a confounding variable is a variable that is correlated with both…
Q: 3. Y₁ = 3k+0.5 St = 0.3Yt d = 0.1 n = 0.05 What are the steady-state values of the capital-labor…
A: The objective of the question is to find the steady-state values of the capital-labor ratio (k),…
Q: Critical Thinking Question #39: Consider the demand for hamburgers. If the price of a substitute…
A: Graphical representation:If the price of a substitute good (for example, hot dogs) increases then,…
Q: Use a graph and rationale to show the type of inflation considered to be the most…
A: HyperinflationHyperinflation is an extremely high and typically accelerating inflation rate. It…
Q: Explain all option compulsory...
A:
Q: When real GDP increased in the first quarter of 2015, personal consumption expenditure, private…
A: The increase in private inventory investment in the first quarter of 2015 likely had a positive…
Q: Please do fast asap with proper explanation and calculation.
A: The shortrun equilibrium price is the price level where the aggregate demad is equal to shortrun…
Q: Are market supply curvy typically more elastic in the short run or in the long run
A: Market supply curves tend to be more elastic in the long run compared to the short run. In the short…
Q: - A bad economy is starting to drag down wages for millions of workers. The average weekly wage of…
A: A decrease in the minimum wage and the average weekly wage may have different short-term effects on…
Q: A university student was bequeathed $2,000 upon graduation at age 20 years. This person was hired by…
A: Lifetime Resources and Consumption Smoothing1. Expression for Lifetime Resources:Let's define the…
Q: • Is the assumption of no perfect collinearity satisfied in the following cases: • A) income = ßo +…
A: The assumption of no perfect collinearity in a regression model implies that none of the independent…
Q: 6. Deriving the short-run supply curve The following graph plots the marginal cost (MC) curve,…
A:
Q: Compare alternatives A and B with the present worth method if the MARR is 14% per year. Which one…
A: To compare alternatives A and B using the Present Worth (PW) method with a Minimum Acceptable Rate…
Q: Explain all option plz......you will not explain all option then I will give you down upvote...
A: The statement about the downward sloping labour supply curve is incorrect. The labour supply curve…
Step by step
Solved in 2 steps
- 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.What is the homogeneous-good duopoly Cournot equilibrium if the market demand function is Q=4,000-1,000p, and Firm l's and Firm 2's variable cost functions are V (q1) = 0.22qlandV (q2) = 0.22q2 , respectively. Select one alternative: Both firms produce 1300 units of outpuit. Both firms produce 1280 units of output. Both firms produce 1240 units of output. Both firms produce 1260 units of output.Consider a Bertrand duopoly. Market demand is P(Q)=41-3Q, and each firm faces a marginal cost of $4 per unit. How much is the sum of firms' total revenue in the Nash equilibrium?
- Consider two firms that produce the same good and competesetting quantities. The firms face a linear demand curve given by P(Q) =1 − Q, where the Q is the total quantity offered by the firms. The costfunction for each of the firms is c(qi) = cqi, where 0 < c < 1 and qiis the quantity offered by the firm i = 1, 2. Find the Nash equilibriumoutput choices of the firms, as well as the total output and the price, andcalculate the output and the welfare loss compared to the competitiveoutcome. How would the answer change if the firms compete settingprices? What can we conclude about the relationship between competitionand the number of firms?Suppose the total demand for specialty coffee per hour in Ruston is Q = 640 - 80P. There are six (n = 6) monopolistically competitive firms currently in the market selling some variety of specialty coffee, each with total cost curves given by: TC₁ = 20+q; +0.0125q²| a. Find the proportional demand faced by one coffee shop, denoted Firm i. That is, suppose the firms have equal market share and determine the demand function for a single firm. b. Calculate the optimal quantity produced by Firm i. c. Calculate Firm i's profits. Will there be entry or exit by other coffee shops over time? d. Provide a generic graph the long-run outcome for Firm i given your prediction from (c). Label curves, axes, and intersection points.Consider a Cournot Duopoly model. The inverse demand for their products is given byP = 200 − 6Q, where Q is the total quantity supplied in the market (that is, Q = Q1 + Q2). Each firm has an identical cost function, given by TCi = 2Qi, for i = 1, 2.(a) In the Cournot model, what does each firm choose?(b) What is the timing of each firm’s decision?
- Consider a single manufacturer (M) and a single retailer (R). Suppose the final demand function is Q=20-4p. M produces at AC=MC=2. The game is played out as below: In stage 1, M decides the wholesale price pw. In stage 2, R decides the retail price pr to consumers. a. Find the values of pr and pw in equilibrium b. Suppose M and R vertically integrate. Find the optimal price for the integrated firmYou are hired as a consultant to a monopolistically competitive firm. The firm reports the following information about its price, marginal cost, and average total cost. Can the firm possibly be maximizing profit? If not, what should it do to increase profit? If the firm is maximizing profit, is the market in a long-run equilibrium? If not, what will happen to restore long-run equilibrium? P < MC, P > ATC P > MC, P < ATC P = MC, P > ATC P > MC, P = ATCConsider the following oligopolistic market. In the first stage, Firm 1 chooses quantity q. Firms 2 and 3 observe Firm 1's choice, and then proceed to simultaneously choose q2 and q1, respectively. Market demand is given by p(O) = 100 – Q, and Q = q1 + 42 + 41. Firm 1's costs are c, (41) = 34, firm 2's costs are cz(4,) = 34; and firm 3's costs are cs(qs) = 3q,. Starting from the end of the game, you can express Firm 2's best response function in terms of q and q3, and you can similarly express Firm 3's best response function in terms of qi and q2. Using these, answer the following questions. a) If Firm 1 chooses q1 = 9, what quantity will Firm 2 choose? b) If Firm 1 chooses qi = 100, what quantity will Firm 2 choose? c) in the subgame perfect Nash equilibrium of this game, firm 1 produces what quantity? d) In the subgame perfect Nash equilibrium of this game, firm 2 and firm 3 each produce what quantity?
- The laptop industry is monopolistically competitive. Each firm's total cost function is given by TC = 80,000 + 10Q, where Q is the firm's output. Each firm's demand function is given by Q = S((1/n) - (1/800)(P-V)), where S is industry output, n number of firms, P price of this firm, and V average price of competing firms. (Hint: each firm's marginal revenue function is MR = P - (800Q/S).) Note: show the key steps in your work. a. Home's market size is 4,900. Find the equilibrium in the Home market: what will be each firm's output, price, and number of firms? b. Foreign's market size is 57,600. Find the equilibrium in the Foreign market: what will be each firm's output, price, and number of firms? c. Suppose Home and Foreign integrate their laptop markets. Find the equilibrium in the integrated market: what will be each firm's output, price, and number of firms? d. Intuitively, why does market integration allow both countries to be better off?Consider the following oligopolistic market. In the first stage, Firm 1 chooses quantity q1. Firms 2 and 3 observe Firm 1's choice, and then proceed to simultaneously choose q2 and q3, respectively. Market demand is given by p(Q) = 100 – Q, and Q = q1 ++ q2 + q3. Firm 1's costs are c (q1) = lq,, firm 2's costs are c2(q2) = 442 and firm 3's costs are c3(q3) = 4q3. Starting from the end of the game, you can express Firm 2's best response function in terms of qi and 93, and you can similarly express Firm 3's best response function in terms of q and q2. Using these, answer the following questions. a) (0.5 point) If Firm 1 chooses q = 12, what quantity will Firm 2 choose? b) (0.5 point) If Firm 1 chooses g = 100, what quantity will Firm 2 choose? c) (1 point) In the subgame perfect Nash equilibrium of this game, firm 1 produces what quantity? d) (0.5 point) in the subgame perfect Nash equilibrium of this game, firm 2 and firm 3 each produce what quantity? Finish attempt .. ious page Site…The 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…