Sub : EconomicsPls answer Fast .Dnt CHATGPT.I ll upvote. Thank You 41. Consider the situation of two firms in the same industry and operating in the same mar-5 ket. Firm A controls over 70% of the annual sales in the market. Firm B shares the remainingroughly 30% of annual sales with three other firms which also compete in this market. Firm7 B's share of annual sales averages about 7%. Both firms seek to maximize profit.689 Firm A's monthly demand function and total cost function are as follows:1011 Demand Q = 20,000 - 100P1213 Firm B's total cost function is1419 (1) Perfect competition20Cost151617 a. What is the market structure in which these firms are competing (select one with "x")?1821 (2) Monopolistic competition2223 (3) Oligopoly--dominant price leadership24TC = 30,000 + 80Q+0.02Q^225 (4) Oligolopoly--barometric price leadership2627 b. What will be the amount of Firm A's monthly profit?2829 c. What will be the amount of Firm B's monthly profit?30 e. At the profit maximizing level of output and sales (Q), what is the degree of operatingleverage of each firm?Firm AFirm B

Firm A controls 70% of the market share Firm B controls 7% of the market share Other 3 firms share…

1. Consider the situation of two firms in the same industry and operating in the same mar- ket. Firm A controls over 70% of the annual sales in the market. Firm B shares the remainin roughly 30% of annual sales with three other firms which also compete in this market. Firm B's share of annual sales averages about 7%. Both firms seek to maximize profit. Firm A's monthly demand function and total cost function are as follows:

1. Consider the situation of two firms in the same industry and operating in the same mar- ket. Firm A controls over 70% of the annual sales in the market. Firm B shares the remainin roughly 30% of annual sales with three other firms which also compete in this market. Firm B's share of annual sales averages about 7%. Both firms seek to maximize profit. Firm A's monthly demand function and total cost function are as follows:

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 1QR

See similar textbooks

Similar questions

Suppose for a single firm thatP = 15TC = 3Q + 2Q2 (a) What is the profit-maximizing quantity? (b) What is the profit at the profit-maximizing quantity? Only typed Answer
(A) Comment on marginal revenue and marginal cost values when it is given that marginal profit is 0. (B) Also comment on total profit value of the firm.
K Total revenue at the profit-maximizing level of output is OA $1,200 OB. $2,500 OC. $4,800 OD, $6,000. Revenue and cost (dollars per unit) $20 11 10 200 250 300 ATC AVC Quantity
After one month of operation, OU Café determined to shorten its business hours and close on weekends. What costs, fixed or variable, should OU Café have considered when it made the
Calculate the Total Revenue, Total Cost, and Profit for the firm below. Show your math. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Q3_A The Break even Analysis of firm show that: BEP = 1000 FC = 10,000 $ P = 3% of the quantity of zero profit. A) The point of intersection of TR with TC is at the cost point of $ 45,000 for TR. B) At the point where (zero units sold) TC equals $ 5,000 C) the start of the line drawing for TR is at cost point $ 0 D) the value UVC for the product in question equals $ 10) E)the FC value in a point for BFP equals $ 10,000 For the given choices, showing which one is True and which one is False, correcting the False ones and given a reasonable reason for the True. Write your answer below:
the choices for the three "quantity" column are (6000, 10400, 12000). the choices for the "price: column are (20,28,34,50) the choices for profit are (negative,prositve, zero) the choices for long run decision are (exit the industry, stay in business, stay or exit) please also do the rest of the questions. thankyouuuu
Output TFC TVC TC MC ATC A 25 25 В 1 25 25 50 25 50 C 2 25 40 65 32.5 3 25 70 95 E 25 110 33.75 F 5 25 160 50 What is the marginal cost of the 4th unit of output? 40 25 50 Cannot be determined.
What is the relationship between revenue cost and profit?
If a firm wanted to reduce the annual EOQ cost as a percentage of the annual purchasecost by 50 percent, how would the demand rate have to change?a. Decrease by 50 percentb. Remain unchangedc. Increase by 50 percentd. Doublee. Quadruple
5. In multiproduct situations, when sales mix shifts toward the product with the highest contribution margin, then: Breakeven quantity will decrease. O Operating income will decrease. O Total contribution margin will decrease. O Total revenues will decrease.
(a) Calculate this firm’s marginal cost for output level 5. (b) Calculate this firm’s marginal cost for output level 6. (c) What is the average total cost at which, this firm reaches its break even-point? (d) What is the average variable cost at which, this firm reaches its shut-down point?