Given that If Alfonso's marginal cost is $6, their best-response function is, Pa=(Pb+30)/2 and If Bernice’s marginal cost is $12, their best-response function is, Pb=(Pa+36)/2, Find the equilibrium prices for the case in which Alfonso's marginal cost is $6 and Bernice's marginal cost is $12.
Q: the supply curve is given Qs= P and the demand curve is given by Qd = P QD = 12 -. 5P Q and…
A: Monopoly market In a monopoly market, a company is the only vendor of a good with no viable…
Q: A young engineer is considering to built a 1 unit apartment near a commercial center. Because of the…
A: a good investment is one that is appropriate to a financial backer's monetary objective, has an…
Q: For each of the markets and taxes described below, draw a generic graph, fully labelled, that…
A: The elasticity of the supply of a good depends upon the price of that good. If the price of a good…
Q: According to Ecological Economists "it is fallacious for a number of influential Economists, most…
A: Ecological economic An interdisciplinary field is ecological economics. It doesn't pretend to be a…
Q: efer to the information provided in Table 2 below. What is the inflation rate for 2005? (Round off…
A: Inflation is a situation in which the prices of the goods and services increases unexpectedly.
Q: Refer to the information provided in Table 1 below. What is the labor-force participation rate?…
A: Employed = 12,000 Unemployed = 4,000 Not in labor force = 5,500
Q: Bob is not considered unemployed if he: Group of answer choices all of the above is not looking…
A: In economics, unemployment refers to a situation where an individual is willing to work but is not…
Q: A poker company assembles three different poker sets. Each Royal Flush poker set contains 1000 poker…
A: Profit maximization is a cycle business firms go through to guarantee the best result and cost…
Q: Consider a small island country whose only industry is fishing. The following table presents…
A: Labor productivity is the output produced by per unit of labor.
Q: The Canadian government has provided export assistance to Bombardier Inc. with its Technology…
A: In the context of economic trade, the term "free market" refers to an unrestricted system in which…
Q: An entrepreneur invests in a new play. The cost includes an overhead of $29,375 plus production…
A: Here we are given a scenario of of a "Play" where both the costs and revenue are involved. There…
Q: diminishing marginal benefit rising marginal cost
A:
Q: Figures 3 and 4 below illustrate a certain relationship between the change in prices and the change…
A: Elasticity measures the responsiveness of quantity demanded to changes in price.
Q: Item Personal consumption expenditure Government expenditure on goods and services Net taxes Gross…
A: GDP is the value of the final goods and services that are produced and manufactured in a country.
Q: Needing a new pair of shoes, Joe has decided to look up shoes online and liked a pair that costs…
A: The buying of any product is chosen on the basis of the product's price. And in competitive market…
Q: Explain how the Supply Curve would shift if the number of producers increased? (Be sure to identify…
A: When talking about the impact of change in the number of producers, it can be said that it will…
Q: In an economy consisting of two people producing two goods, it is possible for one person to have…
A: It is not possible as you can't have comparative benefit in each items.
Q: 13. Fusion in assets -cartel -merger -collusion -acquisition 14. Fusion of stocks -acquisition…
A: A stock sale is the purchase of the owner's shares in a corporation, whereas an asset sale is the…
Q: Brian spends his entire monthly income of $1200 on shoes (S) and pizzas (P). The price of a pair of…
A: Introduction Monthly income of shoes and pizzas $1200 The price of pair shoes $60 and the price of…
Q: the average income in China continues to increase, explain how the following would change a. The…
A: Income elasticity of demand shows the responsiveness of quantity demanded with respect to change in…
Q: The table below shows the total benefit, in dollars, that Diana derives from consuming two goods,…
A: Since you have posted a question with multiple sub parts, we will solve first three subparts for…
Q: 4. The Best Elect electronics store is having a sale on November 8th on any new electronics…
A: The demand function illustrates the relationship that exists between the quantity of a product that…
Q: The above cost curves are for a firm producing flour, which is measured in pounds. 1. What is the…
A: A cost curve is a graph that shows the costs of production as a function of the overall quantity…
Q: Quantity a) How do we call a curve that is presented in the figure above? b) Name and explain the…
A: In the figure, X-axis shows quantity and Y-axis price. The curve shows the relationship between…
Q: C. Carol consumes cheese, x, and cocoa, y. Cocoa is sold in an unusual way: a units of cocoa will…
A: This is an example of the perfect substitute. Corner solution is likely to occur in such situation.
Q: Laramie Company has a variable cost ratio of 0.30. The fixed cost is $176,400 and 21,000 units are…
A: The selling price per unit is the basis when computing the total sales revenue. This amount is…
Q: FACTOR MARKETS HOUSEHOLDS FIRMS GOODS MARKETS G X-M K GOVERNMENTS C1 X-M REST OF WORLD sed upon the…
A: GDP refers to production of goods and services during an accounting years. There are different…
Q: A decrease in the efficiency of various employment agencies to find better matches for those looking…
A: In an economy, if the efficiency of various agencies to find better match between employer and…
Q: Find the equilibrium level of national income in the basic Keynesian macroeconomic model. C = 40 +…
A: Introduction: National Income: The national income refers to the whole earnings of a country that it…
Q: Assistant Professors earn more than Instructors. This statement is a: A. Positive statement B.…
A: In economics, a positive statement is the direct statement that can be proven right or wrong using…
Q: 10. Dependent & independent variables; positive & inverse relationships: Consider the curve labelled…
A: Equilibrium refers to the point where demand curve intersect supply Curve
Q: hand written plzz asap
A: When all resources are effectively utilised, an economy produces at its natural level. It is…
Q: ou need P 4,000 per year for four years to go to college. Your father invested P5,000 in 7% account…
A: investment is the process in which money is spent in the present to receive a greater sum of money…
Q: Jim can produce 60 units of Jell-O or 12 beets in a day. Dwight can produce 75 units of Jell-O or 25…
A: The value of what you lose when choosing between two or more options is known as opportunity cost.…
Q: You are considering the purchase of a certain stock. You expect to own the stock for the next four…
A: When referring to investments with known or anticipated return rates, the term "expected return"…
Q: new technology will most likely ? shift the demand curve to the right shift the demand curve to…
A: The technological changes have strong impacts on the productivity of inputs. The positive…
Q: Consider the market for hamburgers in Dallas, where there are over a thousand burger joints at any…
A: Market demand for a commodity can change as a result of a change in consumers income, their tastes…
Q: Suppose you borrowed $10, 000 at an interest rate of 12% compounded monthly over 48 months. At the…
A: Loan amount (P)=$10,000 Rate of interest =12% compounded monthly This loan is a fixed payment loan…
Q: Market demand is given as Qd = 190-2P. Market supply is given as Qs = P + 10. What would result if…
A: Surplus is also referred to as excess supply. The quantity supplied in this case exceeds the…
Q: 5. Consider a weather forecaster who is paid based on her performance. Each day, she forecasts the…
A: Probability of Rain = p Probability of no rain = (1 - p ) The forecast is 'q' Bonus if it rains…
Q: If the price level and the money wage rate rise by the same percentage, what happens to the quantity…
A: Disclaimer:-Since you have asked multiple questions, We will solve only the first question for you.…
Q: Consider the following table for Spain and France in which output for grapes and textiles are output…
A: Absolute advantage is the ability of the country to produce larger quantity of the good than the…
Q: The consumer price index (CPI) is not used to convert nominal GDP to real GDP because
A: CPI is the most broadly watched and utilized proportion of the U.S. inflation rate. It is…
Q: tting a low price or high price. The payoffs from the price choices are: Assume that the game is…
A: In the sequential game, one player moves first and he is followed by the other player. Thus, player…
Q: A consumer has preferences over 3 goods represented by the utility function u(x1, x2,…
A: u = (x1x2 )0.5 - 2-x3 MUx1 = 0.5 (x2 / x1 )0.5 MUx2 = 0.5 (x1 / x2 )0.5 MUx3 = Ln2 It is given…
Q: We live in a world where computers and other items of technology seem to get ever cheaper to…
A: The AD AS or aggregate demand aggregate supply model is a macroeconomic model that explains price…
Q: Q1. The graph below is an example of "P.O.W. Camp." Which of the following statements is(are) FALSE?…
A: The indifference curve represents the set of bundles that give the same satisfaction or utility. A…
Q: Telephone operators who have lost their jobs as a result of computerized switchboards are an example…
A: A person who is able and willing to work at the going rate of pay is said to be unemployed. It is a…
Q: s a pro-risk investor which bond are you most likely to allocate capital to
A: The above ratings are given by S & P & Moodys to denote the riskiness on the financial…
Q: You are starting a new hobby of clay modelling but you need a monthly cost of 12,000 for materials,…
A: Monthly cost = 12,000 Annual cost = monthly cost ×12Annual cost = 12000 × 12 = 144,000 Weekly sale =…
Given that If Alfonso's marginal cost is $6, their best-response function is, Pa=(Pb+30)/2 and If Bernice’s marginal cost is $12, their best-response function is, Pb=(Pa+36)/2,
Find the
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Suppose that 2 roommates, Andy and Bob, are trying to pick an apartment in Chicago. Locations can be chosen from set of alternatives A={ x: x exists [0,1]}. Andy and Bob both want to minimize their daily commute but they work at different locations: Andy at xA=0.3, while Bob at xB=0.6. Specifically, their utility functions are: ui(x)= -(x-xi)2. Question: What is the set of all Pareto Efficient outcomes in A, assuming no money can be exchanged.You are the manager of a golf course. For simplicity assume that you only have two potential customers – a high demand customer whose inverse demand for golf services is given by P = 10 – 0.5Q and a low demand customer whose inverse demand for golf services is given by P = 8 – 0.5Q. Suppose the marginal cost to the golf course of each round of golf is zero.Suppose you have to charge both players the same two-part pricing strategy. Which of the following pricing strategies will yield the highest profit for you? A. Charge a fixed fee of €100 and a per unit fee of zero B. Charge a fixed fee of €64 and a per unit fee of zero C. Charge a fixed fee of €64 and a per unit fee of €4 D. Charge a fixed fee of €128 and a fixed fee of zero.The US and Canada have overfished North Atlantic cod stocks nearly to the point of extinction. Both countries wish to preserve the cod industry (and hence the cod stocks), so the two countries sign an agreement to limit fish hauls. Each country has two possible strategies: comply with the agreement (limit fishing) or renege on the agreement (overfish). Each country’s payoffs for different strategy combinations are given in the matrix below. The numbers in the cells represent utilities, and the payoff ordering is (US, Canada). QUESTIONS: 1.If this is a one-shot game (i.e., it is played once), do the players have a dominant strategy? If so, what is it? Briefly explain your answer. 2.What is the equilibrium of this game? Is it Pareto-optimal? How do you know?
- A husband and wife would produce incomes Yh and Yw in their fallback situations. The utility each derives in any circumstance is just equal to his or her consumption expenditure in that circumstance. In their fallback situations, their consumption expenditure levels are just equal to their incomes. Thus their fallback levels of utility are Yh and Yw. If they cooperate, they produce Z>Yh + Yw. They engage in Nash cooperative bargaining to determine how to allocate Z across the consumption of the husband, Ch, and consumption of the wife, Cw, subject to the budget constraint that Ch + Cw = Z. Under any bargained allocation, the two would derive utilities of Ch and Cw. What do Ch and Cw equal if Yh = Yw (but this quantity is not equal to zero)?A husband and wife would produce incomes Yh and Yw in their fallback situations. The utility each derives in any circumstance is just equal to his or her consumption expenditure in that circumstance. In their fallback situations, their consumption expenditure levels are just equal to their incomes. Thus their fallback levels of utility are Yh and Yw. If they cooperate, they produce Z>Yh + Yw. They engage in Nash cooperative bargaining to determine how to allocate Z across the consumption of the husband, Ch, and consumption of the wife, Cw, subject to the budget constraint that Ch + Cw = Z. Under any bargained allocation, the two would derive utilities of Ch and Cw. a) The surplus associated with cooperation is S = Z − Yh − Yw. Show that each spouse consumes his or her fallback income plus half the surplus in the Nash cooperative bargaining solution. Please do fast ASAP fast please.Firm 1 and firm 2 compete with each other by choosing quantities. The market demand is given by P(Q) = ( 300 − Q, if Q < 300) (0, otherwise), where Q = q1 + q2. Firm 1 has a cost function C1(q1) = 40q1, and firm 2 has a cost function C2(q2) = 50q2. Answer the following questions. 1. Assume the game lasts only one period. Compute the equilibrium price, quantities and profits for both firms. 2. If firm 1 becomes the monopolist on this market, what quantities will firm 1 choose to produce? Denote this quantity as QM. 3. One possible strategy is that each firm produces QM 2 . Would the resulting outcome be better for both firms (Pareto improvement)? Explain why this is not the equilibrium in the one period game. 4. Assume this game is infinitely repeated and the interest rate in this economy is r. For what values of r the strategy in (3) is sustainable by using a “Grim Trigger” strategy?
- Suppose 20 households in a community have the demand function Q = 2-0.001P each for streetlights while 5 other households have the demand function Q = 3 - 0.002P each for streetlights. Here, Q refers to the number of streetlights to erect near their home while P is the unit price of each streetlight. The cost of building each streetlight is GHS 45. a) Assuming each household is making its separate purchase decision, find the market demand function for streetlights for all 25 households b) Assuming each household is making its separate purchase decision, find the equilibrium price and number of streetlights in the community c) Assuming a community association has decided to coordinate this streetlight purchase decision problem. The community leader uses the demand functions to determine how much each household is willing to contribute (willingness to pay) towards the first, second, third, etc streetlight. The first light is purchased only when the sum of individual households'…In an industry where firms use workers with different personality traits to produce a product. Workers vary in their personality traits, and these can be divided into 12 types along a wheel. Firms enter the market with a specific required personality trait. If a worker's personality trait does not match the firm's desired personality trait, the firm incurs an adaptation cost to close the gap, with a cost of $3 for each unit of personality shift. For example, to go from trait #2 to trait #4, the cost is $6. Given the scale economies in the industry, each firm manages three workers. The gross wage is $20. 1. Company A has six workers, equally spaced on the personality trait wheel at 12:00, 2:00, 4:00, etc. There will be _firms in the city, with firm A at 12:00 and the other firm or firms at 2. Illustrate with a graph 3. For the typical firm, the average mismatch is adaptation cost is 4. Company B has twice as many workers as Company A. It will have _firms. The average adaptation cost is…Consider two product designers compete where to place their product in the product space. Assume the product space is the interval from 0 to 1, including the end points. The prices of the product are fixed. Product designers place their product simultaneously in the product space. Consumer’s ideal product is spread out uniformly over the product space. Consumers like to choose their ideal product. If they cannot get their ideal product, they incur a disutility that depends linearly on the distance from their ideal product. (The disutility only depends linearly on the distance from their ideal product.) Each consumer has enough income to buy one product even if the distance from their own ideal product is 1. a. Where will the two products be placed in the Nash equilibrium if the locations of the product in the product space are chosen simultaneously? Explain. b. What are the socially optimal locations, i.e. the best locations from society’s point of view that minimise transportation…
- You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: splishy splashers, raskels, and kipples. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods. Run-of-the-Mills provides your marketing firm with the following data: When the price of splishy splashers decreases by 8%, the quantity of raskels sold increases by 6% and the quantity of kipples sold decreases by 8%. Your job is to use the cross-price elasticity between splishy splashers and the other goods to determine which goods your marketing firm should advertise together. Complete the first column of the following table by computing the cross-price…Julia and Ralph need to decide which one of them will take time off from work to complete the rather urgent task of pruning their trees. Julia is pretty good with a pole saw; she can prune the trees in 1 hour. Ralph is somewhat slow; it takes him 6 hours to prune the trees. Julia earns $120 per hour as a business consultant, while Ralph earns $15 per hour as a lifeguard.Keeping in mind that either Julia or Ralph must take time off from work to prune the trees, who has the lowest opportunity cost of completing the task?You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: guppy gumdrops, raskels, and cannies. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods. Run-of-the-Mills provides your marketing firm with the following data: When the price of guppy gumdrops decreases by 12%, the quantity of raskels sold decreases by 27% and the quantity of cannies sold increases by 3%. Your job is to use the cross-price elasticity between guppy gumdrops and the other goods to determine which goods your marketing firm should advertise together. Complete the first column of the following table by computing the cross-price elasticity…