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blagie [28]
3 years ago
8

In a Cournot market with two firms, the inverse market demand curve is P = 20 – 0.5Q, where Q = q1 + q2. (Firm 1's output = q1;

Firm 2's output = q2.) If Firm 2 produces 20 units of output, Firm 1's residual marginal revenue curve is depicted in:
Business
1 answer:
Ksenya-84 [330]3 years ago
4 0

Answer:

MR = 10 – 1q1.

Explanation:

Demand function, P = 20 – 0.5Q

Q = q1 + q2

Now insert Q in the P = 20 – 0.5Q.

P = 20 – 0.5 (q1 + q2)

We have the value of q2 = 20.

P = 20 – 0.5 (q1 + q2)

P = 20 – 0.5 (q1 + 20)

P = 20 – 0.5q1 – 10

P = 10 – 0.5q1

Total revenue of firm 1, TR = Pq1

TR = 10q1 – (0.5q1)^2

Now MR is the differentiation of TR. So the MR after differentiation if TR of firm 1 is:

MR = 10 – 1q1

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If demand for product "A" were forecast at 1,000,000 units for the coming year and your factory has one machine capable of produ
hichkok12 [17]

Answer:

4

Explanation:

Data provided in the question

Annual demand of product A = 1,000,000 units

Per week production for one machine = 4,500 units

So for annual the production for one week is

= 4,500 weeks × 52 weeks

= 234,000 units

Now the gap left is

= 1,000,000 units - 234,000 units

= 766,000 units

So, the similar machines would be

= 766,000 units ÷ 234,000 units

= 3.27

= 4 round off

8 0
3 years ago
Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The
postnew [5]

Answer:

$1960

Explanation:

The computation of the total cost is shown below:

Total variable overhead estimated is

= (4 × 31400)

= $125600

Now

total overhead estimated is

= Total variable overhead estimated + Total fixed overhead estimated

= $125600 + 219800

= $345400

Now predetermined overhead rate is

= $345400 ÷ 31400

= $11 per machine hour

Now total overhead applied is

= (11 × 20)

= $220

So,  total job cost is

= Direct material + Direct labor + Total overhead

= (580+1160+220)

 = $1960

6 0
2 years ago
Assume both Atlantis and Zanadu produce helmets and baseballs. Using equal amounts of resources, Atlantis can produce 100 helmet
jeka57 [31]

Answer:

a) see attached image

b) Atlantis's opportunity cost of producing one helmet = 200 / 100 = 2 baseballs

c and d) Atlantis's opportunity cost of producing one baseball = 100 / 200 = 0.5 helmets

Zanadu's opportunity cost of producing one baseball = 100 / 400 = 0.25 helmets ⇒ Zanadu has a comparative and absolute advantage in the production of baseballs

e) yes, Atlantis would produce 100 helmets, and if it trades 50 to Zanadu, it will get 150 baseballs in return. So it will gain from trade. If Zanadu produces 400 baseballs and trades 150 of them for 50 helmets, it will also benefit.

Explanation:

3 0
2 years ago
Milano Gallery purchases the copyright on a painting for $420,000 on January 1. The copyright is good for 10 more years. The com
alex41 [277]

Answer:

Explanation:

The journal entries are shown below:

On January 1

Copyright A/c Dr $420,000

        To Cash A/c $420,000

(Being copyright is purchased)

On December 31

Amortization A/c Dr $42,000

          To Accumulated amortization A/c $42,000

(Being annual amortization is recorded)

The computation is shown below:

= Purchase value of copyright ÷  number of goods years

= $420,000 ÷ 10 years

= $42,000

6 0
3 years ago
Consider a coupon bond with $1000 face value, 10% coupon rate, 5 years of maturity selling for $700. The yield to maturity is
const2013 [10]

Answer:

The approximate yield to maturity is 9.43%.

Explanation:

8 0
2 years ago
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