Tad's bait shop has a monopoly on the bait market at Sanderson's Lake. The demand curve for bait is QD = 36 - 6P. Tad has two employees he can use to search for bait. The marginal cost of using Amanda to search for bait is: MCM (QM) = 0.5??. The marginal cost of using Andrew to search for bait is: MCN(QN) =QN a. Determine how many units of bait each employee should gather. b. Which employee gathers more and why? c. What is the price Tad receives for selling the bait?
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Tad's bait shop has a
for bait is QD = 36 - 6P. Tad has two employees he can use to search for bait. The marginal
cost of using Amanda to search for bait is: MCM (QM) = 0.5??. The marginal cost of using
Andrew to search for bait is: MCN(QN) =QN
a. Determine how many units of bait each employee should gather.
b. Which employee gathers more and why?
c. What is the price Tad receives for selling the bait?
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- The soluation avilible I believe it is wrong so please solve it carefully Carl and Simon are the only sellers of pumpkins at the market, where the total demand function for pumpkins is q =3 ,200−1,600p. The total number of pumpkins sold at the market is q = qC + qS, where qC is the number that Carl sells, qS is the number that Simon sells. The cost of producing pumpkins for each farmer is $.50 per pumpkin; the fixed costs are zero. .a. Find the Cournot equilibrium price and quantities. .b. Find the Bertrand equilibrium price and quantities. . .c. Suppose now that every spring the snow thaws off of Carl’s pumpkin field a week before it thaws off of Simon’s. Therefore, Carl can plant his pumpkins one week earlier than Simon while predicting Simon’s choice based on the previous year information. Simon observes Carl’s choice and chooses how much pumpkin to plant. Find the new equilibrium price and quantities. .d. Compare the quantities and prices in parts a, b, and c. Rank these outcomes…A computer hardware firm sells both laptop computers and printers. Through the magic of focus groups, their pricing team determines that they have an equal number of three types of customers, and that these customers' reservation prices are as illustrated in the figure below. Bundle Laptop $700 $950 $600 Printer Customer A $100 $150 $50 $800 $1,100 $650 Customer B Customer C Assume for simplicity the marginal cost of production for laptops and printers is zero. If the firm were to charge only individual prices (not use the bundle price), what prices should it set for its laptops and printers to maximize profit? Assuming for simplicity that the firm has only one customers of each type, how much does it earn in total? To maximize profit using individual prices, the firm should charge a price for laptops of and a price for printers of p=: (Enter your responses as whole numbers.)Suppose a monopoly market has a demand function in whichquantity demanded depends not only on market price (P) butalso on the amount of advertising the firm does (A, measuredin dollars). The specific form of this function isQ =(20 - P2) (1 + 0.1A - 0.01A2).The monopolistic firm’s cost function is given byC = 10Q + 15 + A.a. Suppose there is no advertising (A = 0). What outputwill the profit-maximizing firm choose? What market price will this yield? What will be the monopoly’sprofits?b. Now let the firm also choose its optimal level of advertising expenditure. In this situation, what output levelwill be chosen? What price will this yield? What will thelevel of advertising be? What are the firm’s profits in thiscase? Hint: This can be worked out most easily by assuming the monopoly chooses the profit-maximizing pricerather than quantity.
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