Consider two firms, Firm A and Firm B, who compete as duopolists. Each firm produces an identical product. The total inverse demand curve for the industry is = 250 ā ( + ). Firm A has a total cost curve ( ) = 100 + 2 . Firm B has a total cost curve ( ) = 100 + 2. a. Suppose for now, only Firm A exists ( = 0). What is the Monopoly equilibrium quantity and price? What is Firm A's profit? b. Find the Nash Cournot equilibrium price and output level. What are the firms' profits? c. Find the equilibrium price and output level in the market if firm A acts as a Stackelberg leader. What are the firms' profits? d. Suppose that the two firms are able to form a cartel. Derive the output each firm will produce, the market price, and the total profit under the cartel solution. e. Compare the Cournot, Stackelberg, and Cartel outcomes to the monopoly outcome you calculated in part a.
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Business, 22.06.2019 10:00, kortlen4808
mary's baskets company expects to manufacture and sell 30,000 baskets in 2019 for $5 each. there are 4,000 baskets in beginning finished goods inventory with target ending inventory of 4,000 baskets. the company keeps no work-in-process inventory. what amount of sales revenue will be reported on the 2019 budgeted income statement?
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Business, 22.06.2019 12:10, gingerham1
Laws corporation is considering the purchase of a machine costing $16,000. estimated cash savings from using the new machine are $4,120 per year. the machine will have no salvage value at the end of its useful life of six years and the required rate of return for laws corporation is 12%. the machine's internal rate of return is closest to (ignore income taxes) (a) 12% (b) 14% (c) 16% (d) 18%
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Business, 22.06.2019 17:30, gghkooo1987
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Business, 22.06.2019 19:10, kingjustin0825
Below are the steps in the measurement process of external transactions. arrange them from first (1) to last (6). event step post transactions to the general ledger. assess whether the transaction results in a debit or credit to account balances. use source documents to identify accounts affected by an external transaction. analyze the impact of the transaction on the accounting equation. prepare a trial balance. record the transaction in a journal using debits and credits.
Answers: 3
Consider two firms, Firm A and Firm B, who compete as duopolists. Each firm produces an identical pr...
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