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pickupchik [31]
3 years ago
15

Both firms in a Cournot duopoly would enjoy lower profits if:

Business
1 answer:
daser333 [38]3 years ago
4 0

Answer:

each firm simultaneously increased output above the Nash equilibrium level.

Explanation:

A French mathematician, Antoine Augustine Cournot developed the Cournot duopoly in his economic model “Researches into the mathematical principles of the theory of wealth”, of 1838.

Cournot duopoly also known as the Cournot competition, is an economic model where two (2) business firms having identical cost functions compete in a oligopolistic market of imperfect competition with homogeneous products.

Under the Cournot duopoly, the competing firms offer identical products and thus, choose an amount or quantity to produce independently and at the same time because they cannot collude.

Both firms in a Cournot duopoly would enjoy lower profits if each firm simultaneously increased output above the Nash equilibrium level.

Hence, the advantage of the Cournot duopoly is that, it inhibits competing firms from deviating unilaterally.

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If the required reserve ratio is 2.50 percent, what is the monetary multiplier? if the monetary multiplier is 5, what is the req
ludmilkaskok [199]

If the required reserve ratio is 2.50 percent, the monetary multiplier is 40.

The money multiplier gives us the ratio of deposits to reserves (i.e. 1/R). That means, if the reserve ratio is 2.50% (i.e. 0.025), the money multiplier is 40 (i.e. 1/0.025). Thus, an initial deposit of USD 1,000 will end up creating a total of USD 40,000 in new money.

If the monetary multiplier is 5, the required reserve ratio is 20%.

Playing with the original multiplier formula, we can derive that R=1/m (m is money multiplier). If the money multiplier is 5, then the reserve ratio is 20% (i.e. 1/5 or 0.20).

8 0
3 years ago
The First Bank of Flagstaff has issued perpetual preferred stock with a $100 par value. The bank pays a quarterly dividend of $1
Olegator [25]

Answer:

$56.89

Explanation:

The computation of the current price of this preferred stock is shown below:

= Annual dividend ÷ required rate of return

where,

Annual dividend equal to

= Quarterly dividend × number of quarters in a year

= $1.65 × 4 quarters

= $6.6

And, the required rate of return is 11.6%

Now put these values to the above formula  

So, the price would equal to

= $6.6 ÷ 11.6%

= $56.89

5 0
3 years ago
while shopping grey spend 90% of the money she had if she has $4,500 on shopping what was amount of money spent​
goldenfox [79]

Answer:

$4,050

Explanation:

Grey has $4,500 for shopping.

She spent 90%  while on shopping.

The amount spent = 90/100 x $4500

=0.9 x $4,500

=$4,050

7 0
3 years ago
Bonita Industries has estimated that total depreciation expense for the year ending December 31, 2018 will amount to $583000, an
Mice21 [21]

Answer:

<u><em>Total expenses 936,500</em></u>

depreciation 291,500

wages expense 645,000

Explanation:

Assuming the depreciation are calculate base on straight line or that their output is lineal through the year:

It will be half of the depreciation for the year.

583,000 / 2 =  291,500 depreciation expense for six-month

For the year-end bonused It wll be the same ideal, we assume are earned equally during the year. So at half year half of the bonuses should be earned:

wages expense 1,290,000/2 = 645,000

<u>Total expenses 936,500</u>

7 0
2 years ago
your food-services company has been named as the sole provider of meals at a small university. the cost and demand schedules are
DiKsa [7]

Answer:

The answer is "400 meals at 2.50 dollars a day".

Explanation:

Please find the complete question and the solution in the attachment file.

In this question, when we compare the MR value as well as the MC, the monopolist produces up to the point where MR>MC.

In this, it happens before 400 meals at 2.50 per day and, so "400 meal at 2.50 dollars a day".

8 0
2 years ago
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