Let the market price for shirts is P=$100 and let the marginal cost of a single firm be MC(q)=50+q. Assume there are 10 firms in the shirt market. What is the market quantity of shirts assuming perfect competition between the 10 firms? O 500 100 50 O 200
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- Suppose we have two identical fırms A and B, selling identical products. They are the only firms in the market and compete by choosing quantities at the same time. The Market demand curve is given by P=287-Q. The only cost is a constant marginal cost of $13. If Firm A produces a quantity of 60 and Firm B produces a quantity of 33, what is market price? Enter a number only, no $ sign. 194The daily demand for bungee jumping over a river in South Africa is given by Q=5000-200P. There are two firms operating and the first one has a daily capacity of 600 people and the second one of 400 people. The marginal cost of operation is 5 for both firms. The two firms compete in prices and announce their prices simultaneously. Calculate the price and profits of both firms.4
- Consider a city that has a number of hot dog stands operating throughout the downtown area. Suppose that each vendor has a marginal cost of $1.50 per hot dog sold and no fixed cost. Suppose the maximum number of hot dogs that any one vendor can sell is 100 per day. Please enter numbers only, for example, 22 for quantity or 1.20 for price. a) If the price of a hot dog is $2, how many hot dogs does each vendor want to sell? () hot dogs per day b) If the industry is perfectly competitive, will the price remain at $2 for a hot dog? If not, what will the price be? The price will be $() per hot dog. c) If each vendor sells exactly 100 hot dogs a day and the demand for hot dogs from vendors in the city is QD = 4400 - 1200P, how many vendors are there in the long-run equilibrium? There are () vendors in the long run. d) Suppose the city decides to regulate hot dog vendors by issuing permits. If the city issues only 20 permits and if each vendor continues to sell 100 hot dogs a day,…0:29:15 Suppose that the market demand for a certain product is given by P = 670 – Q. where Qis total industry output. There are only three firms F, F,, F, that manufacture that product. The three firms have the following marginal costs: c = 32, c2 = 34 and C3 = 36. The leader (F) makes a production decision q1. F2, after observing the quantity chosen by F chooses its own quantity q2. Finally F3, after observing the quantities chosen by F, and F, chooses its own quantity q3. a) Determine the output levels that will be produced in a Stackelberg -Nash equilibrium 91 = 93 = b) Determine the price level in such an equilibrium P= c) Determine the profit levels in such an equilibrium U1 = uz=Consider the fish market where demand is given by the following equation: P=52-Q where P is the price in dollars and Q is the quantity in kilos. All firms are identical and the marginal cost is 12. 15-If the market were competitive, what would the price be and how many units would be produced? You must provide your calculations. 16-If the market was made up of only one firm (a monopoly), what would the price be and how many units would be produced? You must provide your calculations. 17-If the market was made up of two firms (a duopoly) and they chose their level of production simultaneously: what would the price be and how many units would be produced by each firm? You must provide your calculations. 18-If the market was made up of two firms (a duopoly) and firm 2 was dominant (i.e. it chose its level of production first): what would the price be and how many units would be produced by each firm? You must provide your calculations. 19-Compare the quantities produced by each of the…
- ******ONLY ANSWER PART 3 IN PICTURE PLEASE**** Demand for Thunder games in Oklahoma City is given by: P(0)=430-20 Seattle does not currently have an NBA team, but they would like to attract the the Thunder. ok ok ok Demand for Thunder games in Seattle is given by: P (Q) = 490 -20 The marginal cost of production in both cities is constant at MC = 70. Suppose that the Thunder faces an extra fixed cost of 10000 in Seattle because they need to build a new stadium if they move. If the Thunder decides to stay in Oklahoma City, they don't need to pay the fixed cost. Cities can still offer bids to attract the team. a) Will the Thunder move to Seattle? b) How much is the winning bid? c) What is the profit plus bid for the Thunder? d) What is the value minus bid for the winning city?The market for fidgets has only three firms, (A, B, and C), that compete in quantities. The market shares of the firms are sA = 60%, sB = 30%, and sC = 10% respectively. The demand in the market is P = 1 − Q. The marginal cost of firm A is zero. (a) Calculate the HHI in this market (in the year of your data). (b) Suppose that firm B buys firm C. (i) What type of merger would this be? (ii) According to EU rules (on HHI level and change), would this merger be concerning? (iii) According to US rules (on HHI level and change), would this merger be concerning? (c) Call the merged firm BC. Suppose that, after the merger, A and BC compete a la Cournot again and the market shares of the firms are in equilibrium sA = 60% and sBC = 40%. What must be the marginal cost firm BC? Comment on your answerTwo dairy farmers produce milk for a local town with local milk demand given by Q=100-0.3333333333P(P denotes price measured in Rands, Q denotes the quantity measured in liters). Both farmers have the same cost function given by TC=150+2q(wheredenotes output). (h) What if farmer 1 is a leader and farmer 2 a follower, determine the price, quantity and profits made by these two farmers.
