What is the likelihood that firms would enter the market in the short-run? Use COVID-19 as a market condition to explain the likelihood and further explain an exit strategy if one exists.
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What is the likelihood that firms would enter the market in the short-run? Use COVID-19 as a market condition to explain the likelihood and further explain an exit strategy if one exists.
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- DBM Industries produces exclusively an SP Juice in the market under the name DBM Sparkle . The firm’s manager must determine how many bottles to produce before he knows what the market price will be. Assume a competitive market situation. Forecast from the Department of Economics (DOE) revealed that, there is 30 percent chance that the market price will be P80 per liter and a 70 percent chance that it will be P40 per liter when the juice hits the market. If DBM’s cost function is C = 200 + .0005Q2, how much juice should DBM produce to maximize expected profit ? How much is the expected price?Can you answer me as soon as possible , urgentttttt!!!!!!!!!!! Bodyguard Ltd. was established in Hong Kong in 2020. It produces surgical masks sold to retailers, like personal cares stores, in Hong Kong. With its unique Chinese pattern printed on the masks, it also sells good in North America and Canada since 2021. Bodyguard adopts standardized marketing strategy worldwide. Recently, Bodyguard would enter into a contract with a vendor in Vietnam to expand its production capacity. However, Bodyguard’s managers have heard reports that the vendor operates factories with sweatshop conditions, which is not acceptable in Hong Kong. Employment in sweatshops provides a source of income for women in Vietnam, who can earn more wages than in many other jobs, which bring them food, nutrition and education for their children. Sweatshop is a preferred working place of Vietnamese. (c) Explain the TWO approaches in handling ethical dilemma – relativism and normativism. What would be the ethical…COURSE: MICROECONOMICS - Cournot Model:In the market for a given good there are only 2 firms satisfying the demand, and their respective total cost functions respond to the form: CTi = 10Qi + 5 and the demand is estimated to be: P = 31 - QIf the decision variable for both firms is that the quantity they will produce and realize will be decided simultaneously it is asked to:(a) calculate the profit and reaction function of each firmb) graph market equilibriumc) calculate the profits that both companies will obtain in equilibrium
- In 1921 a classic set of experiments with chemical fertilizers were performed at the Rothampsted Experimental Station, an agricultural research institute in Hertfordshire, England. Researchers applied different amounts of a particular fertilizer to 10 apparently identical plots of land. The results for one test, using identical seed grain, are listed in the table. Compute the average and marginal product of fertilizer. Fertilizer Output Average Dose Index * Product 15 104.2 20 110.4 25 118.0 30 125.3 35 130.2 6 40 131.4 7 45 131.9 8 50 132.3 9 55 132.5 10 60 132.6 *Output without fertilizer = 100 (Round your responses for marginal product to three decimal places and round your responses for average product to one decimal place.) Plot 1 2 3 4 5 Marginal Product | | | T | 1.) Use the multipoint curve drawing tool to plot the AP and MP curves on a scale diagram. Remember toplot the value for MP at the midpoint of the output intervals. Use all the values provided in the table above to draw…Olympus has integrated many components into its SLR camera. Recently, Olympus has introduced a smartphone app, Olympus Image Share (OI.Share) to pair with its camera. It says: "Paired with a compatible Olympus camera, the Olympus Image Share (OI.Share) smartphone app makes photography more enjoyable than ever. With this app, you can release the shutter remotely, then easily import photos from the camera to your smartphone and share your most inspiring moments with friends and family". a. How might this news be an example of non-price competition for an oligopolistic firm? Discuss.In a certain region, there are four major healthcare providers: A HealthCare, B CarePlus, C MedWell, and D LifeCare. The market shares of these providers in terms of patient visits are as follows: A HealthCare: 35% B CarePlus: 25% C MedWell: 20% D LifeCare: 20% Calculate the Herfindahl-Hirschman Index (HHI) for the healthcare provider market in this region. Is this market considered concentrated or competitive according to the HHI interpretation?
- You are considering entry into a market in which there is currently only one producer (incumbent). If you enter, the incumbent can take one of two strategies, price low or price high. If he prices high, then you expect a $60K profit per year. If he prices low, then you expect $20K loss per year. You should enter if you believe demand is inelastic. you believe the probability that the incumbent will price low is greater than 0.75. you believe the probability that the incumbent will price low is less than 0.75. you believe the market size is growing.You are managing a competitive corn farm that faces random demand. You must decide how much corn to produce before observing the actual price. As the 2 adjacent figure shows, the price will be $12 or $6 per bushel. The probability the price will be $12 is and the probability that the price will be $6 is - Your MC 3 3 $14 marginal cost curve is also included in the figure. PH=MRH $12 The quantity of corn that maximizes expected profit is bushels. $10 (Carefully enter your response considering the units on the axes of the given figure.) S8 The quantity you would produce if you knew the actual price was $12 is bushels. L= MRL The quantity you would produce if you knew the actual price was $6 is bushels $6 Suppose you produce the quantity of corn that maximizes expected profit, compared to what you would produce if you knew the actual price before producing. $4- The amount of profit lost if the actual price is $12 is $ The amount of profit lost if the actual price is $6 is $ (Enter a…4.25 The Gorman Manufacturing Company must decide whether to manufacture a component part at its Milan, Michigan, plant or purchase the component part from a supplier. The resulting profit is dependent upon the demand for the product. The following payoff table shows the projected profit (in thousands of dollars): State of Nature Low Demand Medium Demand High Demand Decision Alternative s1 s2 s3 Manufacture, d1 -20 40 100 Purchase, d2 10 45 70 The state-of-nature probabilities are P(s1) = 0.35, P(s2) = 0.35, and P(s3) = 0.30. Use a decision tree to recommend a decision.Recommended decision: Use EVPI to determine whether Gorman should attempt to obtain a better estimate of demand.EVPI: $
- 5. Foreign direct investment versus licensing Giocattolo is a profit-maximizing firm producing toy cars-a capital-intensive good-which are sold in its home country, Italy, and abroad in Spain. Giocattolo chose foreign production as a method of penetrating the Spanish market and has to decide whether it is more efficient to directly invest in Spain to establish a production subsidiary or to license the technology to a Spanish firm to produce its goods. On the following graph, AVC Spain is the average variable cost curve of a Spanish firm producing toy cars. (This curve represents costs such as labor and materials.) The curve ATC subsidiary represents the total unit costs Giocattolo will face if it establishes a subsidiary in Spain. PER-UNIT COST (Dollars) 10 9 8 2 1 0 0 15 ATC Subsidiary + 105 30 45 60 75 90 PRODUCT (Thousands) 120 AVC Spain + 135 150 ?ASAP PLZ You are the manager of Taurus Technologies, and your sole competitor is Spyder Technologies. The two firms’ products are viewed as identical by most consumers. The relevant cost functions are C(Qi) = 2Qi, and the inverse market demand curve for this unique product is given by P = 650 −3 Q. Currently, you and your rival simultaneously (but independently) make production decisions, and the price you fetch for the product depends on the total amount produced by each firm. However, by making an unrecoverable fixed investment of $1,800, Taurus Technologies can bring its product to market before Spyder finalizes production plans. (Assume Taurus Technologies is the leader in this scenario.)What are your profits if you do not make the investment? $ ____What are your profits if you do make the investment?Instructions: Do not include the investment of $1,800 as part of your profit calculation. $ ____ Should you invest the $1,800? multiple choice Yes - the benefits of establishing…what exit strategy are available to firms who desire to leave a market during the Covid 19 pandemic
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