Is announcing first an advantage or a disadvantage? Explain briefly.It is an advantage to moveⒸA. second because profit when moving second is higher than profit when moving first.O B. first because cost when moving first is lower than the cost when moving second.O C. first because the price when moving first is higher than the price when moving second.O D. first because profit when moving first is higher than profit when moving second.O E. second because the firm that moves second produces more output.How much would you pay for the option of announcing either first or second?You would be willing to pay for the option of moving first instead of second.Suppose instead that you are to play the first round of a series of 10 rounds (with the same competitor). In each round, you and your competitor announce your output at the same time. You want to maximize the sum of your profits over the 10 rounds. How much will youproduce in the first round? How much do you produce in the tenth round? In the ninth round? Explain briefly.If you play a series of 10 rounds of this game with the same competitor, then you shouldO A. produce 12.00 units of output in each round because collusion is not possible in finite games.O B.produce 8.00 units of output in each round because collusion is not possible in finite games.O C.produce 6.00 units of output in the first round and 8.00 units of output in the last nine rounds because collusion is only possible in the first period.O D. produce 6.00 units of output in each round because collusion is not possible in finite games.O E. produce 6.00 units of output in each of the first nine rounds and 8.00 units of output in the tenth round because collusion is not possible in the last period.Once again you will play a series of 10 rounds. This time, however, in each round your competitor will announce its output before you announce yours. How will your answers change?If you play a series of 10 rounds of this game with your competitor moving first, then you shouldO A. behave irrationally by producing 12.00 units after your competitor produces 12.00 units until both you and your competitor instead produce 8.00 units of output.O B. behave irrationally by producing 8.00 units after your competitor produces 12.00 units until both you and your competitor instead produce 8.00 units of output.O C. produce 12.00 units of output in each period and your competitor should produce 6.00 units of output in each period.O D. produce 6.00 units of output in each period and your competitor should produce 12.00 units of output in each period.O E. produce 6.00 units of output in each period and your competitor should produce 8.00 units of output in each period. You are a duopolist producer of a homogeneous good. Both you and your competitor have zero marginal costs. The market demand curve isP=24-Qwhere Q=Q₁ +Q₂. Q₁ is your output and Q₂ is your competitor's output. Your competitor has also read this book.Total revenue (TR) for your firm will beand total revenue for your competitor's firm will beIn turn, marginal revenue (MR) for your firm will beand marginal revenue for your competitor's firm will beTR₁ = (24-Q₁-Q₂)Q₁minusTR₂ = (24-Q₁-Q₂) Q₂.MR₁ = 24-2Q₁-Q₂MR₂ = 24-Q₁-2Q₂-Suppose you will play this game only once. If you and your competitor must announce your outputs at the same time, how much will you choose to produce? (Enter all numeric responses rounded to two decimal places.)You will produce units of output.What do you expect your profit to be? Explain.Profit will be $, fromSuppose you are told that you must announce your output before your competitor does. How much will you produce in this case, and how much do you think your competitor will produce?You will produce units of output and your competitor will produce units of output.What do you expect your profit to be?Profit for your firm should be $

P=24-QQ=q1+q2MC=0Thank you for the question. As per Bartleby's guidelines, we can solve 3 subparts…

Answered: You are a duopolist producer of a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose a monopolistically competitive firm is in long-run equilibrium. The firm's demand curve is tangent to its average cost curve at Q = 25. Average cost is minimized at Q = 35, where average cost is $50. Which of the following is true? Group of answer choices This firm maximizes profit at an output level of 35 units. This firm maximizes profit at an output level lower than 25 units. This firm maximizes profit at an output level of 25 units. This firm incurs an economic loss in the long run. This firm maximizes profit at an output level greater than 35 units.
Consider any market that has an inverted demand curve given by P = 200-0.6Qd, where P is the market price and Qd is the quantity demanded. Whatever the market structure, it is known that the production of this good takes place through Cmg = CVme= $80.00. Consider that the production of this market can be done by a monopolist company or by two duopolists. If it is a duopoly, the companies will organize themselves as a Stackelberg duopoly and will each have a fixed cost of $1,500.00. If it is a monopoly, this company will have a lot of expenses with licenses with the government, as it is the only one to explore the resource. In this way, your fixed costs would reach $5,000.00. Given this information, evaluate the best balance for this market, from the point of view of consumers.
Microsoft is the market leader in office software with its MSOffice. Its marginal cost of production c is 1 dollar per unit. Home users demand 40 million licenses and are willing to pay 50 dollars, whereas businesses demand 60 million licenses and are willing to pay 100 dollars. Microsoft also produces a home version of MS Office at a marginal cost of c'=2. Home users and businesses are willing to pay 60 and 40 dollars, respectively, for the home version. Which is the best pricing strategy for Microsoft? O Selling MSOffice Professional at 100 Selling MSOffice Home at 40 Selling MSOffice Professional units at 100 and MSOffice Home units at 40 Selling MSOffice Professional at 80 dollars and MSOffice Home at 40 dollars
In perfectly competitive markets, there are so many firms that no one firm can influence price. If any of them try to raise their prices above their competitors’ prices, their customers simply switch and buy their competitors’ products. Monopolies are at the other end of the market spectrum. In a pure monopoly, there is only one firm that services the entire market. A pure monopolist can influence price by varying its level of output until it reaches the level of output that results in the highest level of profit for the firm. Please answer the following questions: What advantages do monopolies have for the economy? What disadvantages do monopolies have for the economy?
Part 1: Scenario: Tobac Co. is a monopolist in the cigarette market in Nicotiana Republic, where the U.S. dollar is used as the official currency. The firm faces the demand curve shown below. The firm has a constant marginal cost of $2.00 per pack. The fixed cost of the firm is $50 million. To answer the questions below, it is useful to know that the equation of the (inverse) demand curve is P = 8 -0.04Q, where Q is the quantity demanded (in millions of packs) and Pis the price per pack (in $). Also, you should draw in the marginal revenue curve. Refer to the scenario above. If the quantity sold is 50 million packs, then the firm's total revenue is total cost is A. B. C. D. A. B. с $400 million; $200 million D $250 million; $100 million Part 2 Tobac Co. is a monopolist in the cigarette market in Nicotiana Republic, where the U.S. dollar is used as the official currency. The firm faces the demand curve shown below. The firm has a constant marginal cost of $2.00 per pack. If Tobac Co.…
a monopolist knows that there are 2 types of consumers, "high demand" and "low demand" types. Inverse demand for low is p=150-qL and p=200-qH . 70% of consumers are the L type. MC =0. a) find the optinal price if the firm can only set one price. b) explain how a firm can set a fee for purchasing any amount and why it is better than single price strategy.
If this monopolistic firm's marginal cost is constant at $30, its profit maximizing output is: (Hint: Demand is linear (P-a-bQ) implying that the MR curve's slope is twice the demand curve slope; find the demand curve and then the MR curve.) Price $70 $50 $30 $10 10 20 30 40 50 units. 40 units. 20 units. 30 units. Demand 50 60 70 Quantity
A monopolistically competitive firm is considering selling several units of the same product as a single package. A typical consumer's demand for the product is Q = 10 - 0.5P and the total cost function is C(Q) = 8Q. What is the optimal number of units to put into a package? What is the optimal price to charge for the package? What are the profits for this pricing scheme?
If a firm sets its output in the short run such that marginal revenue, marginal cost and average total cost are equal, then profits are the firm is monopolistically competitive. if the firm is perfectly competitive and profits are if zero; positive zero ; zero positive ; zero positive ; positive
You are the manager of a monopolistically competitive firm, and your demand and cost functions are estimated as Q = 48 − 2P and C(Q) = 6 + 3Q + Q2. a. Find the inverse demand function for your firm’s product. P = − Q b. Determine the profit-maximizing price and level of production. Instructions: Round your response to the nearest penny (two decimal places). Price: $ Instructions: Round your response to one decimal place. Quantity: c. Calculate your firm’s maximum profits. Instructions: Round your response to the nearest penny (two decimal places). $ d. What long-run adjustments should you expect? Explain. multiple choice Entry will occur until profits are zero. Exit will occur until profits rise sufficiently high. Neither entry nor exit will occur.
Consider a duopoly, i.e., an industry with only two firms: firm A and firm B, making the same product. The industry’s inverse demand is P(Q)=320−(1/5)Q, where P is the market price and Q is the total industry output. Each firm has a marginal cost MC of $20. There are no fixed costs and no barriers to exit the market. a) Suppose that the two firms engage in Cournot competition. Find the equilibrium price PNE in the industry, the equilibrium outputs QANE and QBNE, as well as the profits πANE and πBNE, for each firm. b) Suppose the marginal cost for firm B increases from $20 to $140, while everything else remains unchanged. Find the new equilibrium price PNE in the industry, the new equilibrium outputs QANE and QBNE, as well as the new profits πANE and πBNE for each firm. c) Suppose that, in addition to the marginal cost increase from $20 to $140 from sub question b), firm B also has a fixed cost of $2500, out of which $2100 may be recouped if it shuts down; everything else remains…
Suppose you are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 36 − 4P and C(Q) = 4 + 4Q + Q2 Find the inverse demand function for your firm’s product. Determine the profit-maximizing price and level of production. Calculate your firm’s maximum profits.

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