(Multi-Variable Unconstrained Optimization -pete in a market with inverse demand given by p = 10-2g1 - 292. Firm 1 faces costfunction C = 2q1 and Firm 2 faces cost function C2 = 4q2. How much should eachfirm produce? What will be the market price?Two Cournot duopolists com-%3D%3D

Inverse demand function: P = 10-2q1-2q2 Firm 1 marginal cost = 2q1 Firm 2 marginal cost = 4q2

(Multi-Variable Unconstrained Optimization - pete in a market with inverse demand given by p = 10 - 291 - 292. Firm 1 faces cost function C1 firm produce? What will be the market price? Two Cournot duopolists com- 291 and Firm 2 faces cost function C2 = 4q2. How much should each %3D %3D

(Multi-Variable Unconstrained Optimization - pete in a market with inverse demand given by p = 10 - 291 - 292. Firm 1 faces cost function C1 firm produce? What will be the market price? Two Cournot duopolists com- 291 and Firm 2 faces cost function C2 = 4q2. How much should each %3D %3D

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q1: Firms A and B are two firms supplying products in two separate differentiated goods markets. Equations (1) and (2) give the total cost functions of the two firms: - Firm A: TC = 2Q -----------------------------(1) - Firm B TC = 10 + 2Q -------------------------(2) Each firm has the ability to produce a maximum quantity of 80,000 units in ten batches of 8,000. (a) Explain the relationship between the zero-profit curve and the marginal cost curve for the two firms using the quantity schedule of the two firms and the relevant plots of equations (1) and (2). (b) Use the plots in Q 1(a) and plots of isoprofit curves valuing $34,000 and $60,000 for the two firms to identify any differences in the shape of the two firms’ isoprofit curves. Please provide an explanation for any differences that may exist? *PLEASE ANSWER PART (B) ONLY WITH DIAGRAMS AND EXPLANATION*
asap please
Q1: Firms A and B are two firms supplying products in two separate differentiated goods markets. Equations (1) and (2) give the total cost functions of the two firms: - Firm A: TC = 2Q -----------------------------(1) - Firm B TC = 10 + 2Q -------------------------(2) Each firm has the ability to produce a maximum quantity of 80,000 units in ten batches of 8,000. Question : Use the information given above about firms A and B and appropriate diagrams/figures to explain how the equilibrium for both firms will change if a rival company slashes its prices?
Firm X is going to apply a 2nd degree price discrimination. They plan to charge P1 for the first units and P2 for the subsequent units. The inverse market demand curve is P=100 - 0.4q, and the total cost function is TC = 10q + 130. Answer the following questions: 4. the quantities (q1 & q2) the firm is going to sell after applying 2nd price discrimination are: O q1=300 and q2 =150 O q1=75 and q2 =150 O q1=150 and q2 =300 O qt=150 and q2 =75 5. the prices (P1 & P2) the firm is going to charge after applying 2nd price discrimination are: O P1=70 and P2=40 O P1=40 and P2=70 O P1=20 and P2=40 O P1=60 and P2=30
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Q1: Firms A and B are two firms supplying products in two separate differentiated goods markets. Equations (1) and (2) give the total cost functions of the two firms: - Firm A: TC = 2Q -----------------------------(1) - Firm B TC = 10 + 2Q -------------------------(2) Each firm has the ability to produce a maximum quantity of 80,000 units in ten batches of 8,000. Question: Explain and draw the relationship between the zero-profit curve and the marginal cost curve for the two firms using the quantity schedule of the two firms and the relevant plots of equations (1) and (2) ? *Please draw diagram and answer asap*
Q1: Firms A and B are two firms supplying products in two separate differentiated goods markets. Equations (1) and (2) give the total cost functions of the two firms: - Firm A: TC = 2Q -----------------------------(1) - Firm B TC = 10 + 2Q -------------------------(2) Each firm has the ability to produce a maximum quantity of 80,000 units in ten batches of 8,000. Question: Use the zero profit, marginal cost curve and isoprofit curves valuing $. 34,000 and $ 60,000 on both firms to assess whether the higher isoprofit curves would always get closer to the average cost curve as quantity increases. Explain why or why not?
how do you solve for profit to get optimal level for both firms and optimal selling price?
Q1: Firms A and B are two firms supplying products in two separate differentiated goods markets. Equations (1) and (2) give the total cost functions of the two firms: - Firm A: TC = 2Q -----------------------------(1) - Firm B TC = 10 + 2Q -------------------------(2) Each firm has the ability to produce a maximum quantity of 80,000 units in ten batches of 8,000. Question : Use the information given about firm A above and use appropriate diagrams/figures to explain how the equilibrium will change if it’s cost of production rises to $5?