Beta's Price PolicyHighLowAB$20$30HighAlpha'sPricePolicy$20$10CD$10$15Low$30$15Refer to the diagram, where the numerical data show profits in millions of dollars. Beta's profits are shown in the northeast corner and Alpha's profits in thesouthwest corner of each cell. If both firms follow a high-price policy.Multiple ChoiceBeta will realize a $10 million profit and Alpha a $30 million profit.each will realize a $15 million profitAlpha will realize a $10 million profit and Beta a $30 million profit

Let's examine the potential results depending on the information provided:- If Alpha and Beta both…

Answered: Beta's Price Policy High Low A B $20…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that a monopolistically competitive restaurant is currently serving 230 meals per day (the output where MR = MC). At that output level, ATC per meal is $10, and consumers are willing to pay $12 per meal. What is this firm's profit or loss? Will there be entry or exit? Will this restaurant's demand curve shift left or right? In long-run equilibrium, suppose that this restaurant charges $11 per meal for 180 meals and that the marginal cost of the 180th meal is $8. What is the firm's profit? (LO3)
Archer Daniels Midland (ADM) and Cargill are the biggest makers of high-fructose corn syrup (HFCS), used to sweeten Coke, Pepsi, and other non-diet soft drinks. Each firm is currently choosing between increasing or decreasing their price for HFCS. The table below gives each firm's profits in each possible situation. A is Archer Daniels Midland and C is Cargill. For purposes of this question, ignore the existence of other HFCS makers. Cargill P increase P decrease P increase A: $500 million A: $200 million C: $400 million C: $500 million ADM P decrease A: $600 million A: $350 million C: $200 million C: $300 million a. Assuming the two firms do not cooperate, does either have a dominant strategy? If so, what is it? b. If ADM and Cargill decide to cooperate, how, if at all, will the outcome differ from part a? Would this case be an evample of a repeated or a pon-reneated game?
Scenario 2: Suppose a stream is discovered whose water has remarkable healing powers. You decide to bottle the liquid and sell it. The market demand curve is linear and is given as follows: P = 30-Q The marginal cost to produce this new drink is $3. Refer to Scenario 2. What will be the price of this new drink in the long run if the industry is a Bertrand duopoly? OA. $13.50 OB. $9 OC. $12 O D. $3 OE. None of the above D
PArt C D E last parts
In the Stackelberg model, the firm that sets output first has an advantage. Explain why using your own words.
12. Consider a duopoly market. Two firms are selling identical products and all costs are assumed to be zero for simplicity. Market demand schedule is given in the following table. Note that firms always choose an integer value for the quantity of production. Quantity Price Total Profit 3 $12 4 11 5 8 6 6. 7 4 8 2 1 10 a. Fill in the column of total profit.
Compare an oligopolistic industry that has a great deal of communication among its members with an oligopolistic industry that has little communication and the firms want to maximize profits for themselves. The first industry will likely earn _________ profits and produce __________ output than the second industry. a. lower; moreb. higher; morec. lower; lessd. higher; less
The table below shows the payoffs for two firms competing through advertisement. Firm A and Firm B can each choose to advertise, or to not advertise. A's Strategy Advertise Don't Advertise Table 14.2 B's Strategy Advertise A's profit $100 million B's profit $100 million A's profit $50 million B's profit $200 million What is Firm A's dominant strategy? Don't Advertise A's profit $200 million B's profit $50 million C. Advertise d. Firm A does not have a dominant strategy A's profit $75 million B's profit $75 million a. Don't advertise b. Indeterminate from this information, as no information is provided on Firm A's risk preference.
evaluate the following statement:“Managers should specialize by acquiring only the tools needed to operate in a particular market structure. That is, man- agers should specialize in managing either a perfectly competitive, monopoly, monopolistically competitive, or oligopoly firm.”
Please answer fast please help 1.2.3
Consider an oligopolistic industry with N competing firms. Suppose that these firms have no fixed costs and that they all have the same marginal costs. Each firm must choose what quantity to produce independently of each other, and all firms must choose at the same time. If we decrease the number of firms in this industry (to, for example N−1), the market price Group of answer choices A. increases B. decreases C. remains unchanged D. becomes nil E. none of the above
*You only need to answer question D*

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