TABLE 2 First Period First Second Second Total Profit Price Choice Period Period Price Period for both (High or Low) Profit Choice (High Profit or Low) periods Andrew $1,000 $1,000 Low $1,000 $1,000 $2,000 $2,000 Low Jasmine Low Low O a) Andrew plays "Tit-for-Tat" and Jasmine plays "Tit-for-Tat." O b) Andrew plays "Tit-for-Tat" and Jasmine "cheats." C) Jasmine "cheats" and Andrew "cheats." a) Jasmine plays "Tit-for-Tat" and Andrew "cheats." Expecting only one pricing period, Jasmine chooses the Nash Non-cooperative Equilibrium price strategy.

TABLE 2 First Period First Second Second Total Profit Price Choice Period Period Price Period for both (High or Low) Profit Choice (High Profit or Low) periods Andrew $1,000 $1,000 Low $1,000 $1,000 $2,000 $2,000 Low Jasmine Low Low O a) Andrew plays "Tit-for-Tat" and Jasmine plays "Tit-for-Tat." O b) Andrew plays "Tit-for-Tat" and Jasmine "cheats." C) Jasmine "cheats" and Andrew "cheats." a) Jasmine plays "Tit-for-Tat" and Andrew "cheats." Expecting only one pricing period, Jasmine chooses the Nash Non-cooperative Equilibrium price strategy.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Explain the relationship between price, marginal revenue and average revenue for a perfectly competitive firm? 2. When does a perfectly competitive firm maximize their profits? What they should do if at their current production level their marginal revenue is greater than marginal cost? 3. Explain the difference between a shut-down decision and exiting decision for a competitive firm? When and how they make such decision? 4. Refer to the graph below: Price 19 18 MC 16 12 ATC 1 2 3 43 6 1 8 Quantity In the above graph, assume that the price per unit is $10. Based on this information calculate: a. Profit maximization quantity b. Total revenue at that level c. Total cost at that level d. Profit or loss for this firm (if any) Please refer to the discussion board requirement announcement before posting. First post due on Thursday, May 6th, and reply to two other student's posts due on Sunday, May 9th.
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AVC, ATC,MC 110 80 76 " 50 40 30 29 18 MC ATC 1234567H0 11 12 13 14 Output per period O a Loss of $90 O b. Profit of $180 O c. 50 Od. Profit of $6300 The Competitive Industry and Firm Refer to the figure above to answer this question for a representative firm in a perfectly competitive market. Suppose that the market price is $70. What is the firm's maximum profit (or minimum loss)?
Figure 14-9 Price $29 Po Pa P₂ P₂ Ps Q & a. (P5- P4) × Q3 b. (P5- P3) x Q3 OC. (P5- P4) × Q2 . d. (PS- P3) x Q2 * AVC ATC 6₂ Q₂ Quantity Refer to Figure 14-9. When market price is P5, which area represents a profit-maximizing firm's profits?
|Price Demanded Revenue Revenue Marginal Cost Cost $24 1000 $24,000 ** $15,000 ** ** ** $22 1250 $27,500 $14 $17,000 $8 $20 1500 $10 $19,500 $10 $18 1750 $31,500 Y $23,000 $14 $16 2000 $32,000 $2 $27,000 Z (a) Calculate total revenue at X. (b) Calculate marginal revenue at Y. (c) Calculate marginal cost at Z. (d) Find the profit maximizing price. (e) Find the profit maximizing quantity. (f) Find the profit the firm will earn.
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What is numbers 1-5?
9. If market price is $20 and the firm maximizes profit (minimizes loss), how much profit will the firm earn? $ $100 $1,200 580 140 540 120 O $1,200 O$4,800 -$6,000 4 130 150 MC 180 212 240 370 100