total cost function of one of the firms is expressed by C(Q) = 100 + 4Q2, and demand is P = 80 – 4Q Find the equilibrium price and total quantity that the industry produces. Suppose that Jollibee successfully acquired McDonalds through a hostile takeover. What would be the new equilibrium price and quantity if MR = 80
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The total cost function of one of the firms is expressed by C(Q) = 100 + 4Q2, and demand is P = 80 – 4Q
- Find the
equilibrium price and total quantity that the industry produces.
- Suppose that Jollibee successfully acquired McDonalds through a hostile takeover. What would be the new equilibrium price and quantity if MR = 80 – 4Q? Is this hostile takeover beneficial?
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- An upstream firm (U) sells an input to a downstream firm (D) which resells it to consumers. The marginal cost of U is 4. Each unit is sold by U to D at a transfer price r. Requirement final is p = 12 - y. a) Suppose U and D are separate firms. Find r, y and p. b) Suppose U and D are one integrated firm. Find p and y. c) Suppose the firms are not integrated, but firm U uses a two-part tariff: it requires payment of r for each unit sold to D; in addition, it requires payment lump sum of T. Find the value of r that U will choose. Find the minimum and maximum values by T. d) Suppose the firms are not integrated, but U imposes a resale price control on firm D. Find the value of r that U will choose, and the constraint that it will impose on the price final pAn upstream firm (U) sells an input to a downstream firm (D) which resells it to consumers. The marginal cost of U is 4. Each unit is sold by U to D at a transfer price r. Requirement final is p = 12 - y. a) Suppose U and D are separate firms. Find r, y and p. b) Suppose U and D are one integrated firm. Find p and y. c) Suppose the firms are not integrated, but firm U uses a two-part tariff: it requires payment of r for each unit sold to D; in addition, it requires payment lump sum of T. Find the value of r that U will choose. Find the minimum and maximum values by T. d) Suppose the firms are not integrated, but U imposes a resale price control on firm D. Find the value of r that U will choose, and the constraint that it will impose on the price final p Plzz give the answer of all questions.Suppose that firm Alphabet is the only company that sells all-inclusive vacation packages in the UK. It faces two markets with demand curves given by P₁ = 200 - Q₁ and P₂ = 100-Q2. Assume that Alphabet's total cost function is C = 400 + 200 1) What is the market structure of the all-inclusive vacation packages in the UK? Is firm Alphabet a price taker or price maker? Explain. 2) If Alphabet can price discriminate and could tell which consumer belongs to which market before the purchase happens, what is the type of price discrimination that Alphabet is practising? Explain. Give another example of the same type of price discrimination. 3) If Alphabet can charge different prices at those two markets, what price should it charge in each market in order to maximise profits? What are the quantities it should produce in each market? 4) What if he cannot price discriminate? Then what price should he charge? What is the quantity produced?
- The AC and MC values for firms in a perfectly competitive industry are as follows: Q AC MC 1 12 2 8 20 3 12 4 16 36 5 20 8 24 52 7 28 60 8 32 68 36 76 Suppose that there are 70 firms operating in the industry. Using the MC curve, find out how much output in total is delivered to the market at each price (you only need to consider prices equal to the MC values above). Now assume that the market demand curve is given by p 305 .5Q, where p is the market price. For purposes of this problem, it is helpful to "invert" the demand curve, writing Q in terms of p. This gives Q=610 2p a) Verify that when p 44 the market has O A. excess supply O B. excess demand equal to units. When p 68, the market has O A. excess demand O B. excess supply equal to units. and profit per firm equals(don't include S signs in b) Find the market equilibrium price, and compute output per firm and profit per firm at this price (you need only check prices corresponding to the above MC values. The equilibrium price is p…Based on market research, a film production company in Ectenia obtains the following information about the demand and production costs of its new DVD: Demand: P=1,200−10QP=1,200−10Q Total Revenue: TR=1,200Q−10Q2TR=1,200Q−10Q2 Marginal Revenue: MR=1,200−20QMR=1,200−20Q Marginal Cost: MC=300+10QMC=300+10Q where QQ indicates the number of copies sold and PP is the price in Ectenian dollars. Complete the following table by finding the price and quantity that maximize the company's profit and the price and quantity that maximize social welfare. Scenario Price Quantity (Dollars) (DVDs) Maximizes the company's profit Maximizes social welfare The deadweight loss from the monopoly is . Suppose, in addition to the foregoing costs, the director of the film has to be paid. The company is considering four options: I. A flat fee of 2,500 Ectenian dollars II. 50 percent of the profits III. 150 Ectenian dollars…Given the cost function underlying the figure, would two firms producing output Q (>0) always incur more total cost than one firm producing Q? 60- 55 Let q, be the output of Firm 1 and q, be the output of Firm 2. 50- According to the figure, the total cost of two firms producing Q (as a function of Q) is 45- 40- C(q+) + C(q2)=[]. 35- A 30- The total cost of one firm producing Q (as a function of Q) is E 25 C(Q) =]. く 20- 15- Thus, compared to one firm producing output Q, two firms producing output Q incur V total cost. 10- HAC MC 10 11 12 13 14 15 16 Q, Units per day Enter your answer in each of the answer boxes. JUL 11 MacBook Pro esc G Search or type URL @ #3 $ % & * AC MC, $ per unit
- Question 3 Suppose a market demand function is given by QD(P) = 1,000 - 10P. The product can be produced with a cost function C(Q) = 10,000 + 20Q. (a) Determine Q and P and the firm's profit if there is a single firm. (b) Determine total output Q, the equilibrium price, and the profit of each firm if there are two firms (i.e., a Cournot oligopoly). (c) Determine Q. the equilibrium price, and the profit of each firm if there are 10 firms.Consider the weekly market for gyros in a popular neighborhood close to campus. Suppose this market is operating in long-run competitive equilibrium with many gyro vendors in the neighborhood, each offering basically the same gyros. Due to the structure of the market, the vendors act as price takers and each individual vendor has no market power. The following graph displays the supply (S = MC) and demand (D) curves in the weekly market for gyros. Consider the welfare effects that result from the industry operating as a competitive market versus a monopoly. On the monopoly graph, use the black points (plus symbol) to shade the area that represents the loss of welfare, or deadweight loss, caused by a monopoly. That is, show the area that was formerly part of total surplus and now does not accrue to anybody. Deadweight loss occurs when a market is controlled by a monopoly because the resulting equilibrium is different from the (efficient) competitive outcome. In the…Mizuno Corporation produces and sells running shoes. The marketing division (the downstream division) of Mizuno faces the following the direct market demand equation as follows:Q = 392 – 2P,where Q is the number of pairs of shoes and P is the price of a pair of shoes. Production of each pair of shoes requires 1 square yard of leather. The leather is shaped and cut by the Form division of Mizuno (the upstream division). The Form division’s only customer is the marketing division. The total cost function for leather is TCU=0.5Q2U+10QU+2,where QU is the quantity of leather produced. The total cost of assembling and selling shoes (excluding the leather) isTCD = 2Q2 + 6Q + 4. a) Write down the profit equations of downstream division (πD), upstream division (πU), and total profits (π). b) Calculate the profit-maximizing quantity of shoes (Q*), quantity of leather (Q*U ) and price of shoes (P*)c) Determine the optimal transfer price (P*U).d) Using the profit equations of your answer in a),…
- Mizuno Corporation produces and sells running shoes. The marketing division (the downstream division) of Mizuno faces the following the direct market demand equation as follows:Q = 392 – 2P,where Q is the number of pairs of shoes and P is the price of a pair of shoes. Production of each pair of shoes requires 1 square yard of leather. The leather is shaped and cut by the Form division of Mizuno (the upstream division). The Form division’s only customer is the marketing division. The total cost function for leather is TCU=0.5Q2U+10QU+2,where QU is the quantity of leather produced. The total cost of assembling and selling shoes (excluding the leather) isTCD = 2Q2 + 6Q + 4. a) Write down the profit equations of downstream division (πD), upstream division (πU), and total profits (π). b) Calculate the profit-maximizing quantity of shoes (Q*), quantity of leather (Q*U ) and price of shoes (P*)c) Determine the optimal transfer price (P*U).d) Using the profit equations of your answer in a),…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=total cost function for this market is TC = 500 + 10Q2 1. What are the profit-maximizing quantity, price, and profit for this market? 2. If there are two firms Atlas and Bowden in this market with the same earlier total cost function and they engage in Cournot competition, what is each firm's equilibrium quantity, price, and profit? [NB: round quantities to nearest integer to find equilibrium quantity, price, and profit] Is this a long run equilibrium? Why or why not?
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