Two firms have costs of AC1=MC1= 20 and AC2=MC2=16 respectively. Market demand is Q=1000−40P. a. Suppose firms practice Bertrand competition, that is, setting prices for their identical products simultaneously. Compute the Nash equilibrium prices. (To avoid technical problems in this question, assume that if firms both have the same price, then the low-cost firm makes […]

Suppose that a medical device is produced at constant average and marginal cost of €10 and that the demand for the device is given by The market meets each period for an infinite number of periods. The discount factor is δ. a. Suppose that n firms engage in Bertrand competition each period. Suppose it takes

The Herfindahl index which is used to measure market concentration is defined as where st=qi/Q is firm i’s market share. The higher is H, the more concentrated the industry is said to be. a. Determine the Nash equilibrium of this n-firm Cournot game. Also compute market output, market price, consumer surplus, industry profit and total

Use the first-order condition (Equation 15.2) for a Cournot firm to show that the usual inverse elasticity rule from Chapter 10 holds under Cournot competition (where the elasticity is associated with an individual firm’s residual demand, the demand left after all rivals sell their output on the market). Manipulate Equation 15.2 in a different way

Demographic variables are widely used by marketers to learn about their customers’ differences in terms of age, income, gender, generations…etc. write a minimum of 7 pages APA formatted paper discussing the differences between generation Y (Gen Y) and generation Z (Gen Z) in terms of their shopping behavior, buying habits, and attitudes toward brands and

How are political parties differentiated according to the article by Diamond and Gunther? Sample Solution The post How political parties are differentiated appeared first on ACED ESSAYS.

Suppose a monopoly produces a harmful externality. Use the concept of consumer surplus in a partial equilibrium diagram to analyse whether an optimal tax on the polluter would necessarily be a welfare improvement.

Suppose the production possibility frontier for an economy that produces one public good (y) and one private good (x) is given by This economy is populated by 100 identical individuals, each with a utility function of the form where xi is the individual’s share of private good production (=x/100). Notice that the public good is nonexclusive

Imagine you are traveling in a car at a constant speed of 80 kilometers per hour (km/h). How many seconds (s) would it take to travel 1.5 km? Figure 1.5 shows a container of liquid with a movable piston supporting a load. Compute the magnitude of the pressure in the liquid under the piston if

Compute the change in pressure that must be applied to water to change its volume by 1.0 percent. Calculate the weight of a reservoir of oil if it has a mass of 825 kg. If the reservoir from above Problem has a volume of 0.917m3, compute the density, the specific weight, and the specific gravity