Total View Company manufactures sunglasses. Following is a list of costs the company incurred during April. Use the list to calculate the total manufacturing overhead costs for the month.
Total View Company
Computation of Total Manufacturing Overhead
Manufacturing Overhead:
Total Manufacturing Overhead
Plant depreciation $8,500
Plant foreman's salary 4,000
Plant janitor's wages 1,200
Glue for frames 300
Oil for manufacturing equipment 150
Lenses 52,000
Company president's salary 24,500
Interest Expense 1,500

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers. firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?