2. The market demand for a homogeneous good is given by P = 500 – Q, where P is the market price, and Q is the total quanti ty produced of skateboards. There are two firms, A and B that produce the good. The firms have identical total cost functions given by C = 20q. (a) Find the Cournot Nash equilibrium price and quantities produced by each firm. Determine the profits of each firm. (b) If the two firms collude to maximize their joint profits, what is the collusive quantity of each firm? What is the collusive price? Determine the profits of each firm. (c) Following from (b), show that each firm has an incentive to cheat on the collusive outcome. Determine the profits of the cheating firm and the profits of the other firm in this situation. (d) Using your answers from (a), (b), and (c), set up a payoff matrix and show that the oligopoly competitive market structure has the characteristics of a prisoners' dilemma game.

2. The market demand for a homogeneous good is given by P = 500 – Q, where P is the market price, and Q is the total quanti ty produced of skateboards. There are two firms, A and B that produce the good. The firms have identical total cost functions given by C = 20q. (a) Find the Cournot Nash equilibrium price and quantities produced by each firm. Determine the profits of each firm. (b) If the two firms collude to maximize their joint profits, what is the collusive quantity of each firm? What is the collusive price? Determine the profits of each firm. (c) Following from (b), show that each firm has an incentive to cheat on the collusive outcome. Determine the profits of the cheating firm and the profits of the other firm in this situation. (d) Using your answers from (a), (b), and (c), set up a payoff matrix and show that the oligopoly competitive market structure has the characteristics of a prisoners' dilemma game.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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I need help with HW.
At a price of $14, country 1 will (a) offer for export 9 units of this product. (b) seek to import 9 units of this product. (c) choose not to trade. (d) increase supply. (e) offer for export 18 units of this product
UNITS OF VARIABLE TOTAL MARGINAL AVERAGE PRICE OF INPUT PRODUCT PRODUCT PRODUCT INPUT TOTAL VARIABLE COST AVERAGE VARIABLE COST TOTAL FIXED TOTAL AVERAGE TOTAL MARGINAL COST COST COST COST 012345678 0 $1 $2 6 $1 2 15 $1 27 $1 37 $1 45 $1 50 $1 52 $1 50 $1 ଖ ଖ ଖ ଖ ଖ ଖ ଖ ଖ ଖ $2 $2 $2 $2 $2 $2 $2 $2
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
10. Mobile phone portability allows consumers to retain their phone number if they change to a different phone network, which will tend to (a) increase barriers to entry in the phone industry. (b) discourage product differentiation and increase switching costs. (c) encourage the formation of natural monopolies. (d) reduce market power in the phone industry. (e) (b) and (c) (f) (a) and (d) (g) (a) and (c) (h) (b) and (d) Answer: 10d.
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ctors) on of es 1. Relationship of data usage and bill Data Usage(GB/month) 0 10 20 30 Bill($/month) 10 30 50 70 A. Draw the graph, placing data usage horizontally(on the X axis) and bill vertically(On the Y axis). B. How much is the monthly fixed fee? C. How much is the charge per GB? D. What is the Equation that describes the relationship, where data usage is denoted by D, and bill by B? E. How much would be the charge for 50 GB use per month?
B. The late Anne Collins had 3 children, Mary, John and Hana who unfortunately all predeceased Anne leaving several Anne's grandchildren and great grandchildren. Unfortunately, Anne died intestate without a will or trust. She is survived by: Mary's daughters Emma and Joan John's son Patrick who has 2 children Joe and Frank; Frank has 1 child Eddy. Hana's daughter Elizabeth is also deceased leaving 2 children Jim and Eva. (i) Please fill in the table taking into consideration that Anne died without a will/trust and therefore the distribution shall be according to the CA intestacy laws (Modified Per Stirpes PC 240). Each Emma and Joan Mary's spouse Each of Patrick's 2 children Joe and Frank Each of Elizabeth's 2 children Jim and Eva Patrick's grandchild Eddy Patrick MPS Ø
Figure A Q Figure B Figure C Price (dollars per unit) 15- Price (dollars per unit) 15 Price (dollars per unit) 15- 14- 13- 12- 11- 10- MC MC 14- 14- 13- 12- 11- 10- „MC ATC 13- 12- 11- 10- ATC ATC MR MR MR 9- 9- 9- 8- 8- 8- 7- 7- 6- 90 100 100 100 1i0 Quantity (units) 90 110 90 110 15 Qua Quantity (units) Quantity (units) Consider a perfectly competitive firm in a short-run equilibrium. Figure shows a firm in bad times because the firm produces units and makes a(n) O A. A; 100; economic loss O B. B; 90; economic profit O C. A; 110; economic loss O D. C; 100; economic loss O E. C; 100; normal profit
A79. Which of the following is the most likely consequence of implementing the ‘Unified Payments Interface (UPI)’? (a) Mobile wallets will not be necessary for online payments. (b) Digital currency will totally replace the physical currency in about two decades. (c) FDI inflows will drastically increase. (d) Direct transfer of subsidies to poor people will become very effective.
3 Calculate the income taxes that a person has to pay considering the table below- If a person's income is $6,500, how much does he pay in taxes? If a person's income is $13,500, how much does she pay in taxes? (a) (b) Taxable Up to $5,000 $5,001-$10,000 $10,001-$15,000 Income Taxes 10% of taxable income 14% of taxable income 16% of taxable income