(7) For each situation, solve for the Stackelberg equilibrium 7a) Suppose Sarah's constant MC is $5 but Joe's is $8. (Using P(Q) = 20-0.1Q again and assuming Joe goes first) 7b) Suppose Joe and Sarah have the same marginal cost ($5) but market inverse demand is now P(Q) = 30 -0.2 Q
Q: 8. Given these equations, C = 210 + b Yd₁ I = 460 G=270-0₁1Y X=530 M=485, and T=13+02Y If the…
A: Keynesianism has grown in the postwar century in terms of its potential to ease economic downturns…
Q: reviews the following table, which shows the IRS tax rates for a single taxpayer in 2022. On Annual…
A: Thе marginal tax ratе is thе ratе at which an additional dollar of incomе is taxеd. In othеr words,…
Q: 6) A firm's short-run revenue is given by R=10e -e², where e is the level of effort by a typical…
A: The short run is a notion that asserts that at least one input is constant while the others are…
Q: << pols earch CENGAGE MINDTAP Homework (Ch 03) In the following table, select the amount of each…
A: Opportunity cost is the distinction between a project's projected costs and another choice that must…
Q: QA QB QC Which of the following represents the shortage that would result in this market at a price…
A: There is a shortage in the market when the quantity supplied is lower than the quantity demanded.…
Q: 3) So far we have assumed that the fiscal policy variables G and T are independent of the levels of…
A: a) Y=C+I+GY=c0+c1(Y-T)+I+GPutting the value of TY=c0+c1(Y-t0-t1Y)+I+G
Q: Suppose that both of the events you have just analyzed are partly responsible for the increase in…
A: A supply curve can shift to right or left due to changes in various factors affecting the supply of…
Q: Several growers are happy with this advancement in technology because now they can sell more crops,…
A: Elasticity of demand, often referred to as price elasticity of demand, is a measure in economics…
Q: 2. A particular country had consumption equal to 675, residential investment was 158, nonresidential…
A: Consumption = 675Residential investment = 158Non-residential investment = 344Change in business…
Q: 1) Cournot Model with Asymmetric Information - Suppose the inverse demand function is P(Q) = 30−0.2…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first three subparts for…
Q: 4. A different economy can be modeled with these équations: C = 150+ b Yd₁ F = 260, 16 = 20₁ |X= 280…
A: C=150+b*YdIn consumption function, b is marginal propensity to consume (MPC).MPC tells how much…
Q: You are the manager of a firm. The data on the demand for your product is saved in HW3_1.xlsx. The…
A: Log-linear model lnY=a+b ln*x+u
Q: (2) Two competing firms are each planning to introduce a new product. Each will decide whether to…
A: The correct answer is given in the second step.
Q: Assume that there are four consumers A, B, C, and D, and the prices that each of them is willing to…
A: Consumer surplus: It is the measurement of the benefit that the consumer derives from buying a…
Q: 6b) Suppose Joe and Sarah have the same cost functions as earlier (constant MC of $5) but market…
A: Cournot Nash equilibrium is the point of intersection of best response curve of each firm which…
Q: 3. In that economy, If investment rises by 5 to 255, what is the new value of Y? (2 decimals) |C=…
A: The total value of all final goods and services produced by a country within a specific time frame,…
Q: The figure below is the production possibilities curve showing production of T-Rex costumes and…
A: Opportunity Cost: It refers to the foregone revenue on the next best alternative if we pick a…
Q: 1. Assume an economy can be modeled with these equations: |C=150+ 0.68 Ydp I=250 16=20 X=290, M=355,…
A: Aggregate Expenditure (AE) is the current value of all the finished goods and services in the…
Q: Suppose the Federal Reserve sets the reserve requirement at 10%, banks hold no excess reserves, and…
A: The money multiplier alludes to the possible expansion in the money supply that can be created by…
Q: From the previous graph, you can tell that Yakov is willing to pay $ bowl, the consumer surplus he…
A: Consumer surplus is a concept in economics that represents the difference between what consumers are…
Q: 1) Label each of the following statements true, false, or uncertain. Explain briefly. a. The largest…
A: GDP refers to the all final value of goods and services that produced in the domestic territory of…
Q: A survey taken by residents from the imaginary town of Cardsburgh tells economists that the…
A: Income elasticity of demand is a measure of how sensitive the demand for a good or service is to…
Q: From the previous graph, you can tell that Hilary is willing to supply her 8th slice of pizza for s…
A: Hilary’s weekly supply curve is given as below. Producer surplus is represented by the Yellow shad…
Q: (5) For each situation, solve for the Bertrand-Nash Equilibrium (differentiated Product). 5a)…
A: Nash Equilibrium is a set of strategies that a player chooses that maximizes the pay-off, given the…
Q: The demand for Good X is given in the graph shown here. Which of the following could cause the shift…
A: The demand curve is a graphical representation of the inverse relationship between price and…
Q: W₁ = $200 - T, W₂ = $240-2T, W3 = $320-2T. Suppose public television is a pure public good that can…
A: The demand curve is the graphical representation of the relationship between the quantity demanded…
Q: 2. With that same model, what is the multiplier on +? (When I increases by I, what is the change in…
A: Consumption function:It is a relationship between consumption the income. As income increases,…
Q: 8) Consider the economy of Hicksonia. a. The consumption function is given by C=200 +0.75(Y-T) The…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: The opportunity cost of holding money (what households are giving up by holding their wealth in the…
A: Opportunity cost is the cost of doing one thing in terms of other. Opportunity cost shows the…
Q: 3. You are hired as the consultant to a monopolistically competitive firm. The firm reports the…
A: By dividing the total cost(TC) by the total amount of output produced, the Average Total Cost (ATC)…
Q: 3) Jack's Labor Demand Problem Jack hires craftswomen like Jane to help produce widgets. Jack acts…
A: As per our guidelines we are answering the first three sub parts for you. For other parts of the…
Q: 5. Assume an economy can be modeled with these equations: C=280 +0.7204 I=450₁ 6=300-0,14Y₁ X=460, M…
A: The equation Y = C + I + G + X - M represents the GDP equation in macroeconomics, illustrating the…
Q: For that same economy, what is the multiplier on investment? (2 dec
A: Any increase in public or private investment spending is said to have a greater than proportionately…
Q: Consider an economy described by the following equations Y = C +I + G C = 100 + 0.75(Y – T) I = 500…
A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…
Q: 6. With these same equations: C = 220 +0,76rd, I = 440₁ 6=270-dosk X=530, M=535, and T = U+01127
A: The equation for equilibrium is as follows:Given the provided equations:
Q: Suppose the market for tennis shoes has one dominant firm and five fringe firms. The market demand…
A: Since you have posted a question with multiple sub-parts, we will provide the solution to only the…
Q: 5. Suppose a US Investor has $2450 to invest and can choose either a US investment paying 5.4%⁰ or a…
A: Foreign investment refers to the purchase of an asset in another country. It can be FDI i.e. foreign…
Q: 1. A country had real GDP per person of 5800 in 2005 and has had average real GOP growth of 8,4% per…
A: GDP refers to the total monetary value of all final goods and services that a nation produces in its…
I need help with this question
![(7) For each situation, solve for the Stackelberg equilibrium
7a) Suppose Sarah's constant MC is $5 but Joe's is $8. (Using P(Q) = 20-0.1Q again
and assuming Joe goes first)
7b) Suppose Joe and Sarah have the same marginal cost ($5) but market inverse
demand is now
P(Q)= 30 -0.2 Q](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fff7e5d2d-207e-4291-a67c-99eb9ef485a4%2F1631b1bf-d6ea-4e6e-9ecb-6488ce6c3c43%2F5nuhg2_processed.png&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- Suppose you are the economic adviser ofa company producing three brands of mobile pnones;Nokia 10, Samsung X and iPhone 7. Suppose further that, your company currently sells 120units of iPhone Z at e800 per unit, 150 units of Samsung X at e800 per unit and 200 units ofNokia 10 at e100 per unit, but in a bid to maximize profit, the company's managing directorproposes an increase in price of Samsung X from e800 to e1000 per unit for which quantitydemanded is anticipated to fall from 150 to 100 units; iPhone Z from e800 to e 1200 per unitfor which quantity demanded is anticipated to fall from 120 to 100 units; and Nokia 10 from100 to 200 per unit for which quantity demanded is expected to fall from 200 to 100 unitsUsing the mid-polint formula. compute the price elasticity of demand for each brand.From your answer in i, what is the type and economic interpretatiom of each brand'sii.value of elasticity.Presently, Able High Lift and Baker Overhead are the only suppliers of services that can lift heavy construction material to the heights required for high-rise construction projects the Northwest. No other suppliers have the equipment necessary to perform these lifts. The market inverse demand for these services is given below. P = 800 - 8Q where l on9: Suppose there are two restaurants on an island, Ace's (A) and Betty's (B). They both have to decide how many meals, qa and qB, to sell per day. For Q = qA + ¶B, the market demand function for meals is p = 120 – Q || Both restaurants face a marginal cost per meal of $30. (1) Find the Cournot equilibrium quantities and prices. (2) What if the restaurants decide to form a cartel and split the production and profits evenly. How much will each firm produce and what price do they charge? (3) Suppose they competed with prices instead of quantities. Find the Bertrand equilibrium quantities and prices. (4) Find the deadweight loss of Cournot competition, Bertrand competition, and of the cartel outcome. Then rank each of these from least deadweight loss to most deadweight loss. For the rest of the problem, assume firms compete in quantities (Cournot) and there is no cartel. (5) Suppose Betty's marginal cost per meal increases to $60. Ace's marginal cost remains at $30. What are the new…
- The concert promoters of a heavy metal band, WeR2Loud, know that there are two types of concert - goers: die - hard fans and casual fans. For a particular WeR2Loud concert, there are 1.000 die - hard fans who will pay $150 for a ticket and 500 casual fans who will pay $50 for a ticket. There are 1,500 seats available at the concert venue. Suppose the cost of putting on the concert is $50,000, which includes the cost of the band, lighting, security, etc. Refer to Scenario 15-6. How much additional profit can the concert promoters earn by charging each customer their willingness to pay relative to charging a flat price of $150 per ticket? Group of answer choices $25,000 $50,000 $ 75,000 $100,0005. Suppose there is a Chinese firm that could produce a "widget" at a cost of 9qw, where qw is the number of widgets. It can then ship these widgets to a U.S. firm at a transport cost of $1 per unit and for a price of pw. The U.S. firm can then turn one widget into one car at a cost of $10. Cars are then sold on the world market, where inverse demand for cars is given by: P = 500-2Q. (a) If the Chinese firm is a perfect competitor, what is P = TU.S. = Q = qw= Pw= Chinese = (b) If the Chinese firm is a monopolist, what is P = = TU.S. Pw= qw= TChinese =Firm A and firm B are battling for market share in two separate markets.Market I is worth $30 million in revenue; market II is worth $18 million.Firm A must decide how to allocate its three salespersons between themarkets; firm B has only two salespersons to allocate. Each firm’srevenue share in each market is proportional to the number ofsalespeople the firm assigns there. For example, if firm A puts twosalespersons and firm B puts one salesperson in market I, A’s revenuefrom this market is [2/(2 1)]$30 $20 million and B’s revenue is theremaining $10 million. (The firms split a market equally if neitherassigns a salesperson to it.) Each firm is solely interested in maximizingthe total revenue it obtains from the two markets.a. Compute the complete payoff table. (Firm A has four possibleallocations: 3–0, 2–1, 1–2, and 0–3. Firm B has three allocations: 2–0,1–1, and 0–2.) Is this a constant-sum game?b. Does either firm have a dominant strategy (or dominated strategies)?What is the…
- Problem # 1 You are the marketing manager of a firm that produces Titanium and sells this metal to two distinct kinds of customers: aircraft producers and golf club manufacturers. Demand for Titanium by these two market segments is quite different, as described by the respective price equations: PA = 10 - QA./600 and PG = 12 - QG./100, where annual quantities are in thousands of pounds and prices are in dollars. Your firm estimates the marginal cost of titanium production at $4 per pound. a) What is the optimal price and quantity for the aircraft segment? b) What is the optimal price and quantity for the golf segment?QUESTION 10 Mary is the only one in town who can make red velvet cupcakes. Each cupcake costs her $4 to make (i.e. her marginal cost is constant at $4 per cupcake). Currently, Mary charges $4.50 for a cupcake. Below is the table of potential prices she could charge and the corresponding quantities. Price ($/cupcake) 6.50 6.00 5.50 5.00 4.50 4.00 Quantity (cupcakes) 30 42 56 72 92 105 Answer the following questions: a. What is Mary's marginal revenue when the price is $4.50 per cupcake? Answer to the nearest two decimal places. $ per cupcake. b. At a price of $4.50 per cupcake, should Mary decrease or increase the number of cupcakes sold to maximise profit? Type D for Decrease or I for Increase. c. Calculate Mary's profit-maximising quantity of cupcakes to sell. Answer to the nearest whole number (with no decimal places). cupcakes.Suppose Tasty Cakes is deciding its pricing strategy: it is debating whether to offer a single linear price for its sheet cakes or to offer non-linear pricing. Suppose on any day, it gets 2 customers–who are of Type A and TypeB with the following maximum willingness-to-pay for the cakes: Units Type A Type B 1 $100 $90 2 $75 $40 Suppose it costs $10 to bake each of the cakes. (a) If Tasty Cakes decides to pick a linear pricing strategy, what will be the profit-maximizing price it should choose? How many cakes will it end up selling and what will be its total profit? (b) If Tasty Cakes decides to pick a non-linear pricing strategy where it may offer a different price depending on the number of cakes purchased, what should be the profit-maximizing set of prices? How many cakes will it sell and what will be its total profit? (c)Comparing Tasty Cakes’profits in (a) and (b), explain IN WORDS why we see this difference in profits