**Practice**Consider a market with three firms. Each firm has a different cost function.We assume C1(q1) = 7q1, C2(q2) = q2 + 1, and C3(q3) = 3q3. They compete by choosing prices a la Bertrand. The demand curve is Q(Pmin)20 Pmin. What is the aggregate market demand in the equilibrium, approximately?(a) 11=(b) 13(c) 15(d) 17(e) 19 =They compete by choosing quantities a la Cournot. The inverse demand is P(Q)33 2Q. What is the Nash equilibrium? Hint: don't go crazy on the math; try to solve theproblem by eliminating alternatives.(a) (91, 92, 93,=(3/2, 3/2,7/2)(b) (91, 92, 93) = (4, 1, 3)(c) (91, 92, 93)=(2,5,4)(d) (91, 92, 93) = (4,6,3)(e) (91,92,93) = (5/2,9/2, 10)

In oligopoly market structure, there are handful of suppliers and numerous buyers. Firms compete…

Answered: They compete by choosing prices a la…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A company produces at most 15 (thousand) widgets per year. Its profit P, in thousands of dollars, is a function of n, the number of widgets prouduced per year( in thousands of widgets) the marginal profit is given by dp/dn = 20 + n -n^2. A. What is the marginal profit if n= 3 ( thousand widgets) should the company increase or decrease production B. What is the marginal profit of n= 8 ( thousand widgets) should the company increase or decrease production C. How many widgets should the compay proudcue in order to maximize
These are not graded questions but revision questions from my textbook
Consider an industry with identical firms. Suppose the cost function of firm i, i=1,...,n, is given by 2 Ci(q) = 6 q₁² + 91 What is the minimum value of the individual firm's average cost? (As usual, you must enter a number below, not a ratio, not an expression with symbols..., just a number. Don't round, even if rounding makes sense...)
A company that produces healthcare services (patient visits) operates with the following production function where q denotes the weekly output level in terms of the number of patients, L represents the hours of human intelligence (doctors and nurses) employed per week, and K denotes the hours of artificial intelligence utilized per week: 9 L0.5 K0.25 = The cost per hour for artificial intelligence is represented by r, and the cost per hour for human intelligence is denoted by w, both expressed in dollars per hour. 1) Determine the optimal levels of L and K that minimize the firm's costs given a target level of production q. Express the cost-minimizing levels of L and K as two functions of q, w, and r. Show your work carefully.
(a) The marginal cost of two firms are given by the following Firm 1: C'(Q) = 300e®. 1Q+2 TC= 3000 when Q = 0 Firm 2: C'(Q) = 41 +30Q -5Q² TC =400 when Q = 0 (i (iii) average cost function for each firm
3-) Use the following information to answer the questions below: The Kentucky Coal Company sells its coal in a nearly perfectly competitive market. It estimates its total costs of production as TC=1000+40+0.0502 where Q-tons of coal per day. a-) What is the fixed cost for this firm? b-) What is the total variable cost when quantity is 10 units? c-) What is the marginal cost of producing 10 units? I P(S) 15 ATC 10 S A 125 150 160 4-) How much profit does the profit-maximizing monopolist pictured in the diagram have? MC
Suppose that two European electronics companies, Siemens (Firm S) and Alcatel-Lucent (Firm T), jointly hold a patent on a component used in airport radar systems. - Demand for the component is given by the following function \[ P=1,000-Q \] - The total cost functions of manufacturing and selling the component for the respective firms are \[ \begin{array}{c} T C_{S}=70,000+5 Q_{S}+0.25 Q_{S}^{2} \\ T C_{T}=110,000+5 Q_{T}+0.15 Q_{T}^{2} \end{array} \] Assume that the firms agreed to form cartel and calculate the joint profit.
Nicole wants to examine first if she wants to enter the market for Chanel bags and she assumes that the market is under perfect competition. She observed that all the firms that are producing Chanel bags have the same LR cost function and is given by C = 200 + 20q + 0.5q2. All firms present in the market has a fixed cost of $200 if it produces a positive output, otherwise the LR cost is zero if there is zero production. The market demand for Chanel bags is QD = 1000 - 2p, where p is the price of one umbrella. Currently, Nicole counted that there are 22 firms in the industry and that the market is a constant cost industry.(c) Suppose that the demand for the Chanel Bag shifts to QD = 1600 - 2p. Assuming that the industry is in the LR equilibrium, solve for the market clearing condition and the number of firms present.
advanced microeconomics, uncertainty
Handwriting solution Not required...
(a) The marginal cost of two firms are given by the following Firm 1: C'(Q) = 300eº.1Q+2 TC= 3000 when Q = 0 Firm 2: C'(Q) = 41 +30Q -5Q² TC =400 when Q = 0 (i) What is the fixed cost for each firm
The cost function for a firm is given by CQ) = 5 + Q If the firm sells output in a perfectly competitive market and other firms in the industry sell output at a price of $20, what price should the manager of this firm put on the product? What level of output should be produced to maximize profits? How much profit will be earned? As per your solution provided The profit is maximized: MC=MR=P C(Q) = 5+Q2 MC= dC/dQ = 2Q ...what is dC and dQ here??? and why dC/dQ = 2Q?? please assist

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