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Rainbow [258]
3 years ago
10

In a homogeneous-good Cornet model where each of the n firms has a constant marginal cost m and the market demand curve is p = a

- bQ, show that the Nash-Cournot equilibrium output of a typical firm is q=a-m/(n+1)b . Show that industry output, Q (= nq), equals the monopoly level if n = 1 and approaches the competitive level as n gets very large.PLEASE write clear
Business
1 answer:
Jlenok [28]3 years ago
7 0

Answer:

Q=nq=\frac{n}{n+1}\frac{a-c}{b}

if n=1 (monopoly) we have Q^M=\frac{1}{2}\frac{a-c}{b}

if n goes to infinity (approaching competitive level), we get the competition quantity that would be Q^c=\frac{a-c}{b}

Explanation:

In the case of a homogeneous-good Cournot model we have that firm i will solve the following profit maximizing problem

Max_{q_i} \,\, \Pi_i=(a-b(\sum_{i=1}^n q_i)-m)q_i

from the FPC we have that

a-b\sum_{i=1}^n q_i -m -b q_i=0

q_i=\frac{a-b \sum_{i=2}^n q_i-m}{2b}

since all firms are homogeneous this means that q_i=q \forall i

then q=\frac{a-b (n-1) q-m}{2b}=\frac{a-m}{(n+1)b}

the industry output is then

Q=nq=\frac{n}{n+1}\frac{a-c}{b}

if n=1 (monopoly) we have Q^M=\frac{1}{2}\frac{a-c}{b}

if n goes to infinity (approaching competitive level), we get the competition quantity that would be Q^c=\frac{a-c}{b}

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The great thing about IRAs is that you can withdraw money anytime you want, with no financial penalty. True False
tangare [24]

The great thing about IRAs is that you can withdraw money anytime you want with no financial penalty is a false statement.

<h3>What is IRA?</h3>

An individual retirement account refers to a savings account with tax advantages that individuals can open to save and invest in the long term.

The great thing about IRAs is that you can withdraw money anytime you want, with no financial penalty is a false statement.

Learn more about IRA here:

brainly.com/question/9969005

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7 0
1 year ago
Monique was looking for a venue for her wedding reception. When she visited one potential location, she noticed that the landsca
Zarrin [17]

Answer: Tangibles

Explanation:

 According to the given question, the Tangibles is one of the service quality building blocks that caused Monique for selecting the various types of alternatives venue for her wedding reception.

 The tangible services is known as the psychical service which include the various types of goods and the services quality of block in terms of appearance of various types of communication material, equipment and the physical facilities in the building that is provided by the venue.    

 Therefore, Tangibles is the correct answer.    

 

6 0
3 years ago
On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to finance its operations of produci
Orlov [11]

Answer:

Chin Company

Journal Entries

1. Issuance of the bonds:

Debit Cash $9,594,415

Debit Bond Discounts $405,585

Credit Bonds Liability $10,000,000

To record the issuance of the bonds at a discount.

2. June 30:

Debit Bond Interest Expense $383,777

Credit Cash $350,000

Credit Amortization of Bond Discount $33,777

To record the first interest payment and amortization of bond discount.

3. December 31:

Debit Bond Interest Expense $385,128

Credit Cash $350,000

Credit Amortization of Bond Discount $35,128

To record the second interest payment and amortization of bond discount.

b. The amount of the bond interest expense for the first year:

June 30: Bonds' Interest expense = $383,777

Dec. 31: Bonds' Interest expense = $385,128

Total bond interest expense for the first year = $768,905

c. Chin Company was able to issue the bonds for only $9,594,415 rather than for the face amount of $10,000,000 because the bonds were issued at a discount and not face value.  Bonds can be issued at face value, discount, or premium, depending on the prevailing investor's sentiments and the attractiveness of the bonds to investors.

Explanation:

a) Data and Calculations

Face value of bonds = $10 million

Discounted value (Cash receipt) = $9,594,415

Total amount of discount = $405,585

Bond's interest rate = 7%

Market yield = 8%

Bond maturity period = 5 years

Payment period = semiannually

Issuance of the bonds:

Cash $9,594,415 Bond Discounts $405,585 Bonds Liability $10,000,000

June 30:

Cash payment for interest = $350,000 ($10,000,000 * 3.5%)

Bonds' Interest expense = $383,777 ($9,594,415 * 4%)

Amortization of bond discount = $33,777 ($383,777 - $350,000)

Bond book value = $9,628,192 ($9,594,415 + $33,777)

December 31:

Cash payment for interest = $350,000 ($10,000,000 * 3.5%)

Bonds' Interest expense = $385,128 ($9,628,192 * 4%)

Amortization of bond discount = $35,128 ( $385,128 - $350,000)

Bond book value = $9,663,410 ($9,628,192 + $35,218)

4 0
2 years ago
Coral Music manufactures harmonicas. Coral uses standard costs to judge performance.​ Recently, a clerk mistakenly threw away so
jeka57 [31]

Answer:

Explanation:

std rate  $9.00

actual rate  $8.50

standard hours 5,200

Total variance: 390 Favorable

Rate variance:

(standard\:rate-actual\:rate) \times actual \: hours = DL \: rate \: variance

Efficiency

(standard\:hours-actual\:hours) \times standard \: rate = DL \: efficiency \: variance

Total:

rate + efficiency

(standard\:rate-actual\:rate) \times actual \: hours + (standard\:hours-actual\:hours) \times standard \: rate = 390

We plug our know values and solve:

(9 - 8.5) \times actual \: hours + (5,200-actual\:hours) \times 9 = 390

0.5actual hours + 46,800 - 9actual hours = 390

46,800 - 390 = 8.5 actual hours

46,410/8.5 = actual hours = 5,460

now we calculate each variance:

rate: 2,730

(9-8.5) \times 5,460 = DL \: rate \: variance

efficiency (2,340)

(5,200-5,460) \times 9 = DL \: efficiency \: variance

8 0
3 years ago
Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows:
stiv31 [10]

Answer:

a) Determination of the amount of the amortization, depletion, or impairment for the current year for each item:

   Item                 Impairment   Amortization    Depletion

                             Expense         Expense          Expense

a. Timber rights                                                  $304,000

b. Goodwill        $ 1,110,000

c. Patent                                     $456,000

b) Adjusting Journal Entries:

Date       Account Titles                                   Debit         Credit

Dec. 31   Depletion Expense -Timber rights  $304,000

              Accumulated Depreciation - Timber rights     $304,000

To record the depletion expense for Timber rights.

Dec. 31   Goodwill Impairment Loss             $1,110,000

              Accumulated Goodwill Impairment                $1,110,000

To record the impairment loss for Goodwill

Dec. 31   Amortization Expense - Patent     $456,000

              Accumulated Amortization - Patent                 $456,000

To record the amortization expense for Patent.

Explanation:

a) Data and Calculations:

February 22, Purchase of Timber rights $1,140,000

Estimated stand of timber = 6,000,000

Used board feet of timber = 1,600,000

Units of product Depletion

= $1,140,000/6,000,000 * 1,600,000

= $304,000

December 31, Goodwill impairment

= $1,110,000

April 3 Patent:

Cost incurred $9,120,000

Amortization per annum = $608,000 ($9,120,000/15)

Amortization for the current year = $456,000 ($608,000 * 3/4)

8 0
3 years ago
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