The inverse demand for a homogenerous-product STakelberg duopoly is P=18,000-5Q. The cost structures for the leader and the follower, respectively, are CL(QL=2,000QLand CF(QF)=4000Qf. What is the follower's reaction function? Determine equilibrium output level for both leader and follower. Determine the equilibrium market price. Determin the profits of the leader and the follower.
Q: Amanufacturing company leases a building for $100 000 per year for es manufacturing facites in…
A: Lease Cost = 100,000 Paid for instalment = 18,000 Labor Cost = 15 per Labor Material Cost = 9 per…
Q: Suppose 4 firms compete in a homogeneous-product Cournot oligopoly. If each firm's marginal cost…
A: The firm produces and sale in the market to make profit. The profit is the main aim of firms.…
Q: Firms A and B operate in a market with inverse demand given by p = 160 - (q_{A} + q_{B}) Their total…
A: Nash equilibrium is the point where best response of both players intersect
Q: Make a research regarding the recent bank closures: What tools that they government used to curb…
A: [Please note that the two questions are answered in a generalized manner] Bank failures occur when a…
Q: What are the three stages of the demographic transition? For each stage describe: a. Is population…
A: A population's age distribution can significantly change as a result of a long-term pattern of…
Q: Describe Malthus’ pessimistic model of population. What empirical facts about population in the…
A: ***Since the student has posted multiple questions, hence, the expert is required to solve only the…
Q: Constructing a new road at a cost of $ 670,000 will result in a saving of travel time for users…
A: The Rate of Return (ROR), which is calculated as a percentage of the initial investment, is a metric…
Q: mong the following, which statement does not reflect the globalization of business?
A: Globalisation is the process of interaction among the people , the companies , the business…
Q: Tim Urban, owner/manager of Urban's Motor Court in Key West, is considering outsourcing the daily…
A: The concept of a crossover point is used in comparing the costs/benefits of two alternative ways of…
Q: O O O Note: Please make sure to properly format your answers. All dollar figures in the answers need…
A:
Q: Based on the criteria used by the Bureau of Labor Statistics (BLS), identify each person’s status as…
A: People who are willing to work and have a paid job are considered to be employed. People who are…
Q: Based on the production possibility c Health Care 700 Production Possibility Frontier A 6000 500 400…
A: Production possibilities frontier shows the combinations of two goods that can be produced with the…
Q: Suppose the government decides to transfer money to households in their bank account. What will…
A: If the government transfers money to households' bank accounts, the overall money supply in the…
Q: Use the following graph to answer the next question. Price Level AS3 AS₁ Real Domestic Output, GDP…
A: Supply refers to the number of services and products that a manufacturer is able to manufacture and…
Q: D Question 9 Long-run costs are a reflection of price controls O capacity price ceilings scale
A: Since you have posted multiple questions, we will provide the solution only to the first question as…
Q: Suppose that the equilibrium wage in the low-skilled labor market is $14.00. Further, suppose the…
A: Equilibrium wage is the market wage rate that equates the demand for labor with the supply of labor,…
Q: The variable in a normal distribution can assume any value between Multiple Choice O -3 and +3. -4…
A: In economics, probability distribution refers to a mathematical function that describes the…
Q: Consider a perfectly competitive market, with demand given by and supply given by The government…
A: The information which has been given is as follows:- Per unit tax imposed by government = $2…
Q: Find the payback period (in terms of decimal years) for a milling machine that has an initial cost…
A: A financial metric known as the payback period is used to calculate how long it will take an…
Q: 6. Using the labor market, production function. and AS/AD graphs of the classical model, show the…
A: The supply and demand for labour, wherein employees give the supply and employers provide the…
Q: Assume that the cconomy of Country X his an actual unemployment rate of 7%, a natural rate of…
A: The Phillips curve is a graphical representation of the inverse relationship between unemployment…
Q: If you were playing a game of Stag Hunt, would you rather play the simultaneous version of the game…
A: Simultaneous and sequential game: Game theory explains how players choose their strategies to…
Q: Vigor Pharmaceuticals Ltd. is considering investing in a new production line for its pain-reliever…
A: The weighted average cost of capital (WACC) is a crucial financial principle that is frequently…
Q: B. Consumer Price Indexes (CPI) are index numbers and are used to compare the evolution of prices…
A: Consumer Price Index refers to weighted price index of consumption goods which is a very widely used…
Q: Using the Consumer Price Index (CPI) detailed in the table below, Year 1990 1991 1992 1993 1994 1995…
A: Inflation is defined as a rise in the cost of consumer goods and services. Rising prices are…
Q: The following question has 5 parts (a.-e.), parts b. to e. will be revealed after submitting your…
A: In this case, we have to discuss the unemployment rate. Unemployment rate is the rate of unemployed…
Q: Suppose you have $1000 to invest and you are considering putting your money in either bonds, stocks,…
A: Investment is the method of putting money into assets that create wealth and benefit to to the…
Q: In 2019, a. what percentage of the labor force was employed? b. what percentage of the labor…
A: Labor Force consists of both employed and unemployed people. Labor Force = Employed + Unemployed A…
Q: Considerthe following problem. There are five firms producing a homogenous good and competing in…
A: The demand is the willingness of an individual to pay in the market and his ability to purchase the…
Q: KidzPoses Inc., a profit-maximizing business, is the only photography business in town that…
A: Total Revenue is the product of price and quantity Marginal revenue is the revenue generated from…
Q: Complete the following table. Note that the firm in question is profit-maximizing in a competitive…
A: A firm in a perfectly competitive market maximizes profit by producing at MC = P Here MC = Marginal…
Q: If a local government is willing to provide a plot of land and buildings for an incoming FDI, the…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: a) Find and highlight the consumer surplus in the monopoly in the diagram. b) Draw a possible…
A: The term monopoly is derived from the combining of two words, namely 'Mono' and 'Poly'. The term…
Q: Suppose Valerie is currently using combination D, producing one crochet hat per day. Her opportunity…
A: Opportunity cost is the cost of producing 1 good in terms of other good. Opportunity cost shows the…
Q: How does the law of supply and demand affect prices? Investopedia. Most goods respond to the…
A: Law of demand states the relationship between demand and prices. Law of supply states the…
Q: Quantity Demanded (in kgs) 100 90 80 70 60 50 40 1. Plot and graph the data on the supply curve. P P…
A: ***Since the student has asked to solve some specific parts of the question, hence, the expert is…
Q: Use the information in the following paragraph and Table 1 to answer questions 1 through 10. Assume…
A: Marginal cost is defined as an additional cost incurred by a producer when he produces an additional…
Q: Section Four: Compare using necessary graph and examples: (Assign) The non price factors increasing…
A: Demand means the quantity of goods that all the consumers are willing and able to buy at a given…
Q: What voter ID policy would result in the most free and fair electoral process?
A: The answer to this question is highly dependent on various contextual factors, including the…
Q: What are the roots of today's global economy?
A: The global economy refers to the interconnected system of economic activity that spans national…
Q: uppose that the production function is Yt = AtKt^(1/2) Lt^(1/2) where Yt is output, Kt is the stock…
A: Optimal input demand problem: The optimal input demand bundle is such that at that bundle the firm…
Q: 3. Consider the following production functions along with their corresponding marginal product of…
A: Introduction When a corporation adds a single labour unit while maintaining the same level of…
Q: Inflation distorts savings when real interest income, rather than nominal interest income, is taxed.…
A: Nominal interest income refers to the income that is earned from interest on borrowings that is not…
Q: Youngstown-Warren Regional Airport (YNG) has had a difficult time securing passenger service from a…
A: A company's economic profit is calculated by deducting its explicit and hidden costs from its…
Q: Exercise 3.1 A publisher must take a decision on the pricing of a new book based on the following…
A: Cost is the payment in the production process in such a way that rent, wages, interest, and profit.…
Q: Suppose that the production function is What is the average product of labor AP₁, holding capital…
A: Production function shows the relationship between the inputs used and output produced. The average…
Q: Determine a scenario where government imposes a binding restriction on price (ceiling or floor).
A: Price ceilings means through which a good's price is kept from increasing past a specific point. The…
Q: In a survey of 250 households regarding the ownership of desktop and laptop computers, the following…
A: The total number of households = 250. Number of households that own only desktop computer = 130…
Q: (3) 9=7%, i=15% Sooo 01 Pw=n + 2 3 4 5 6 789 10
A: A cash flow diagram represents the inflow or the outflow of cash above and below the horizontal line…
Q: Figure Z 430 220 100 40 16 Price 2 n Supply 20 Quantity Refer to Figure Z. When is this supply curve…
A: Elasticity measures the percentage change in quantity due to percentage change in price. The supply…
The inverse demand for a homogenerous-product STakelberg duopoly is P=18,000-5Q. The cost structures for the leader and the follower, respectively, are CL(QL=2,000QLand CF(QF)=4000Qf. What is the follower's reaction function? Determine equilibrium output level for both leader and follower. Determine the
Please answer correct please asap please
Don't answer by pen paper plz
Trending now
This is a popular solution!
Step by step
Solved in 6 steps
- The inverse demand for a homogeneous-product Stackelburg duopoly is P=24000-5Q. The cost structures for the leader and the follower respectively are CL(QL)=3000QL and CF(QF)=4000QF. a) What is the followers reaction function? b) Determine the equilibrium output level for both the leader and the follower. Leader output: Follower output: c) Determine the equilibrium markert price $ d) Determine the profits of the leader and the follower. Leader profits: $ Follower profits: $Please solve all the parts and only typed answer The inverse demand for a homogeneous-product Stackelberg duopoly is P = 16,000 – 4Q. The cost structures for the leader and the follower, respectively, are CL(QL) = 4,000QL and CF (QF) = 6,000QF. What is the follower’s reaction function? Determine the equilibrium output level for both the leader and the follower. Leader output: Follower output: Determine the equilibrium market price. Determine the profits of the leader and the follower. Leader profits: Follower profits:The inverse demand for a homogeneous-product Stackelberg duopoly is P= 24,000 -5Q. The cost structures for the leader and the follower, respectively, are CL(QL) = 3,000QL and CF(QH = 4,000QF. a. What is the follower's reaction function? QF=| 0.5 QL b. Determine the equilibrium output level for both the leader and the follower. Leader output: Follower output:
- The inverse demand for a homogeneous-product Stackelberg duopoly is P = 16,000 − 4Q. The cost structures for the leader and the follower, respectively, are CL(QL) = 4,000QL and CF(QF) = 6,000QF. a. What is the follower’s reaction function? b. Determine the equilibrium output level for both the leader and the follower. c. Determine the equilibrium market price. d. Determine the profits of the leader and the follower.The inverse demand for a homogeneous product Stackelberg duopoly is P = 14000 – 20. The cost functions for the leader and follower are C(Q) = 2000Q, and C;(QF) = 4000Q, respectively. a) What is the follower's revenue function? Note that MRF = 14,000-2Q1-4QF and MCF = 4,000. b) What is the follower's reaction curve? c) Determine the equilibrium output level for both the leader and the follower. [Note that for a quadratic revenue function R(Q)=aQ²+bQ+c, it holds that MR(Q)=2aQ+b.] d) Determine the equilibrium market price. e) Determine the profits of the leader and the follower.The inverse demand for a homogeneous-product Stackelberg duopoly is P = 12,000 −5Q. The cost structures for the leader and the follower, respectively, are CL(QL) = 4,000QL and CF (QF) = 5,000QF.a. What is the follower’s reaction function? QF = − QLb. Determine the equilibrium output level for both the leader and the follower.Leader output: Follower output: c. Determine the equilibrium market price. $ d. Determine the profits of the leader and the follower.Leader profits: $ Follower profits: $
- The inverse demand curve for a Stackelberg duopoly is P = 10,000 - 6Q. The leader's cost structure is CL(QL) = 15QL. The follower's cost structure is CF(QF) = 25QF. 1.1. Determine the reaction function for the follower. 1.2. Determine the equilibrium output levels for both the leader and the follower. 1.3. What are the profits for the leader? For the follower?The inverse market demand curve for salmon is given by P(Y) = 100 – 2Y, and the total cost function for any firm in the industry is given by TC(y) = 4y. a. Suppose that two Cournot firms operated in the market. What would be the reaction function for Firm 1 and the reaction function of Firm 2? (Notes: The marginal cost is not zero). If the firms were operating at the Cournot equilibrium point, what would the industry output and price be? b. For the Cournot case, draw the two reaction curves and indicate the equilibrium point on the graphThe inverse demand function in a particular homogenous product Cournot duopoly is P = 150 – 2(Q1+Q2). Each firm produces at constant marginal costs, equal to 20 and 28, respectively. [Notethat MRi(Qi) = a-bQj-2bQi] a) Determine each firm’s revenue function. b) Determine the reaction function for each firm. c) Calculate each firm’s equilibrium output. d) Calculate the equilibrium market price. e) Calculate the profit each firm earns in equilibrium.
- The industry demand is P(y) = 14 – 2y. There are two firms with cost functions C1(y1) = 0 and C2(y2) = 0, respectively. a) Find the Cournot equilibrium: quantities, prices, profits, and total surplus. b) Suppose now that the two firms are owned by the same owner. Find the quantity, price, profit, and surplus. Compare your findings to the magnitudes in part (a). c) Find the maximal surplus possible in this industry. Point out two different sources of inefficiency which makes this total surplus in part (a) smaller.Consider a homogeneous product industry with three firms 1, 2, and 3 that engage in simultaneous quantity competition. All firms incur identical constant marginal cost c and no fixed cost. Inverse linear demand is given by p = 1-q where q denotes total market output. (a) Find the equilibrium quantities, price, and profits. (b) Consider now a merger between firms 1 and 2, resulting in a duopolistic market structure. In fact, the merger gives rise to efficiency gains in the sense that the merged entity produces at marginal cost e c, where e < 1. The outsider to the merger still incurs marginal cost c. Find the post - merger equilibrium quantities, price, and profits. (c) Under what conditions does the merger reduce prices? Clearly explain the step by step solution, Please be sensible and give the complete answer for the quation asked. Please solve in detail. Dont give me the chatgpt answersOutput is homogenous and the demand curve is P = 448 - Q. There are two firms with identical %3D costs given by C = q2 i where qi is the production of firm i. The marginal cost of firm i is Mci(qi) = 2qi . (a) Find the Cournot equilibrium firm outputs. (b)