Answer to first part is 135(Q15), i want to confirm my answer for Q16 which i got as 3645 There are two firms in a homogenous product market described by the demand functionP(q1,q2)=131-(1/5)(q1+q2),and both firms have marginal costs of 50. Firms choose once and simultaneously quantities.How much does firm 1 produce in equilibrium?(answer to 2 decimal places) 16. Calculate the profits for firm 1 for the situation described in question 15 before, where the inverse demand function wasP(q1, q2)=131-(1/5)(q1+q2)and marginal costs for both firms were 50.Determine the equilibrium profits for firm 13645.00 (answer to 2 decimal places)

Answered: Image /qna-images/answer/21d18c64-348b-4518-91a6-d7dc462e244a.jpg

16. Calculate the profits for firm 1 for the situation described in question 15 before, where the inverse demand function was P(q1, q2)=131-(1/5)(q1+q2) and marginal costs for both firms were 50. Determine the equilibrium profits for firm 1. 3645.00 (answer to 2 decimal places)

16. Calculate the profits for firm 1 for the situation described in question 15 before, where the inverse demand function was P(q1, q2)=131-(1/5)(q1+q2) and marginal costs for both firms were 50. Determine the equilibrium profits for firm 1. 3645.00 (answer to 2 decimal places)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A simple random sample of size n is drawn from a continuous population with mean u and v. O N(H. O Nu, a) O SN(\mu, n \sigma)s LaTex: \text[$N(\frac{\mu}{n O N(nµ, no²)
Complete the first step in determining the sum of 2323 and 2929. 2/3+2/9 = = = The final, simplified sum of these two fractions is 8/9 .
RBMC Industry manufactures a special printing according to customer specifications with respect to the number of sheets the machine can produce per hour. With this, there is a $50 increase in the production rate x. A shop owner is considering buying one of these machines. From his past experiences, the owner estimates that the arrival rate is three per hour and each order averages 500 sheets. Contracts signed by the owner, and the customer says that there will be a penalty of 10$ per late order per hour. It is assumed that the actual production time is exponential. (a) Formulate the cost model as a function of the production rate x. (b) Determine the optimal production rate the owner should specify in his purchase of the machine from RBMC. Hint: Get the derivative of the cost function.
week before delivery, the customer indicated that it could only take 600 of the 800 items. Because of the long-standing relationship MFMI decided to accept this revised arrangement and mandate the sales team to sell the remaining 200 items in the market for at least $7000 per item. At the end of the period the sales team reported to management that they have identified buyers who were willing to purchase the 200 items at a rate of $6100 per item and at the management’s preferred price only 140 of the 200 would be sold. Give Evidence-based / calulations on recommendations on whether to overhaul/retool the factory and continue in operations, do not retool but continue operating or the sell the company and exit the industry.
pls help asap on both
The chairman of Heller Industries told a meeting of financial analysts that he expects the firm’s earnings and dividends to double over the next three years. The firm's current (that is, as of year 0) earnings and dividends per share are $3 and $1.5, respectively.(1) Estimate the compound annual dividend growth rate over the 3-year period.(2) Forecast Heller’s earnings and dividends per share for each of the next three years, assuming that they grow at the rate determined in Part (1).(3) Assuming that earnings and dividends per share of Heller Industries common stock grow at the rate determined in Part (1) for the next three years and then at 5 percent thereafter, what’s the price of that sock? (The investors’ required rate of return is 13%)
pls help asap on both
PLS HELP ASAP ON BOTH
Joosey Technologies have developed a new manufacturing process which they believe will revolutionize the smartphone industry. They are, however, uncertain how they should go about exploiting this advance. Initial indications of the likely success of marketing the process are 55%, 30%, 15% for "high success", "medium success" and "probable failure", respectively. The company has three options; they can go ahead and develop the technology themselves, license it or sell the rights to it. The financial outcomes (in R millions) for each option are presented in Table 3. Table 3: Financial outcomes (in R millions) Probable failure -100 0 25 Develop License Sell High success 80 40 25 Medium success 40 30 25 a) Draw a decision tree to represent the company's problem. b) Calculate the Expected Monetary Value (EMV) for all possible decisions the company may take and hence determine the optimal decision for the company.
Does the following dataset satisfy GARP?
A pressure transducer regulates a climate control system in a factory. The transducer fails according to an exponential distribution with rate one failure every five years on average. For the pressure transducer mentioned above, use the failure rate function to estimate the likelihood that a transducer that has been operating for six years fails in the seventh year. How close is the approximation to the exact answer?
33. Consider an expected utility maximizer whose utility function is U(w), where w denotes wealth, expressed in dollars. Suppose that U(0) = 0 and U(1,000, 000) = 1. Further suppose that the individual is indifferent between having w = 200, 000 for sure or a gamble in which w = 0 with probability .4 and w = 1,000, 000 with probability .6. For this individual, U(200, 000) is %3D