20. (product and constant marginal cost.a. Under complete information equilibrium prices are equal to marginal costs.b. Under incomplete (private) information about marginal costs firms enjoy market power in equilibrium.c. Under incomplete (private) information about marginal costs firms achieve expected positive profits inequilibrium where equilibrium prices are pi = L+2a for i = 1,2.d. Under complete information the market share for each firm can only be a half if marginal costs areidentical.Choose and mark the statements that are true. Consider a Bertrand duopoly for a homogenous

As we know that the assumptions of the Bertrand's Duopoly Model is 1) There are two firms 2) both…

Answered: 20. (. product and constant marginal…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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4. A certain company's total cost function is C= 9000 + 5q. Its revenue function is R=5q. Both C and R are expressed in dollars, and q represents the quanity of items produced. (a) What is the fixed costs? (b) What is the marginal cost per item? (c) What is the price at which this item is sold?
PB The demand equations for related products A and B are given by QA = 14 PA dollars) per unit. = 25. (a) Find the values of the two marginal demands for product A when PA = 9 and PB (b) If pB is reduced to 23 from 25, with PA fixed at 9, use part (a) to estimate the corresponding change in demand for product A. O A. O B. apa (a) Find the marginal demand for A with respect to PA. Select the correct choice below, and fill in the answer box to complete your choice. (Simplify your answer.) ?qA 29A and q = 3 apA PA Рв where qÅ and q are the quantities of A and B demanded, and PÅ and på are the corresponding prices (in C
Consider the following model of a firm. The firm can sell any number of units at the constant price, p, The marginal cost of production is given by MC = c + dq. If the technical parameters of the model are c=5 and d=2 and the price, p= £50, how much profit will the firm make if it produces and sells 17 units of the good? a. £11 b. -£374 c. £476 d. £850
The demad function for A and B are as follows- **see picture** where qA and qB are the quantities of A and B demanded and pA and pB are the corresponding prices (in dollars) per unit.i. Find two marginal value for product A when pA = 10 and pB = 18.ii. If pB 16, with pA 10, use part (a) to estimate the corresponding change in the demand for product A.
17. The table below shows the number of cakes that could be baked daily at a local bakery, depending on the number of bakers. Number of Number of MPL VMPĮ Bakers Cakes 1 10 18 3 23 4 27 a. Calculate the marginal product of labor. (Please report your answers in the table above.) Do you observe the law of diminishing marginal returns? b. Suppose each cake sells for $10. Calculate the marginal revenue product of labor. c. Draw the marginal revenue product of labor curve, which is the demand curve for bakers. d. If each baker is paid $80 per day, how many bakers will the bakery owner hire, given that the goal is to maximize profits? How many cakes will be baked and sold each day?
2. A simple curve that often makes a good model for the variable costs of a company, as a function of the number of units produced, x, has the form: y = b₁x + b₂x² + b3x³. (There is no constant term because fixed costs are not included.) Consider the following table of recorded variable costs versus units produced for some company:
Please don't provide handwritten solution...
6. If the cost function for a commodity is C(x)=+4x+4.x+18. 90 a. Find the marginal cost of making 4 units. b. Find the total cost of producing 0 to 2 units.
4. If the marginal cost of a firm is 15e** and the fixed cost is 85, find the total cost function. What is the total cost, average cost and variable cost at Q = 8?

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