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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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Answer:

$22,000 gain.

Explanation:

Please see attachment

3 0
3 years ago
The following information pertains to Crane Video Company:
Mashutka [201]

Answer:

Prepare Bank Reconciliation Statement

Balance at Bank as per Cash Book - Up to date $7,972

Less Lodgements not yet credited :                     ($1,300)

Add Unpresented Cheques                                     $591

Balance as per Bank Statement                           $7,263

Adjusting Entries

J1

Bank service charge $28 (debit)

Cash $28 (credit)

J2

Cash $700  (debit)

Note - Receivable Crane  $700 (credit)

J3

Cash  $36  (debit)

Interest Income $36 (credit)

J4

Service Fee $20 (debit)

Cash $20 (credit)

Explanation:

First Update the Cash Book as follows:

<u>Debit :</u>

Cash balance $7,284

Crane $700

Interest $36

Totals $8,020

<u>Credit:</u>

Bank service charge $28

Crane : fee $20

Balance - Up to date $7,972

Totals $8,020

Then, Prepare Bank Reconciliation Statement

Balance at Bank as per Cash Book - Up to date $7,972

Less Lodgements not yet credited :                     ($1,300)

Add Unpresented Cheques                                     $591

Balance as per Bank Statement                           $7,263

Adjusting Entries

J1

Bank service charge $28 (debit)

Cash $28 (credit)

J2

Cash $700  (debit)

Note - Receivable Crane  $700 (credit)

J3

Cash  $36  (debit)

Interest Income $36 (credit)

J4

Service Fee $20 (debit)

Cash $20 (credit)

7 0
3 years ago
A bond with a $1,000 face value and an 8 percent annual coupon pays interest semiannually. The bond will mature in 15 years. The
Keith_Richards [23]

Answer:

$781.99

Explanation:

The price of the bond can be computed using excel pv function given below:

=-pv(rate,nper,pmt,fv)

rate is the semiannual yield to maturity i.e11%*6/12=5.5%

nper is the number of semiannual coupons the bond would i.e 30 semiannual coupons in 15 years

pmt is the amount of semiannual coupon=$1000*8%*6/12=$40

fv is the face value of $1000

=-pv(5.5%,30,40,1000)=$781.99  

7 0
3 years ago
Presented below is pension information for Company Y for 2021.
iren [92.7K]

Answer:

The Amount of pension expense is $195,000

Explanation:

The computation of the amount of pension expenses reported is shown below:

Service cost    $150,000

Interest on projected benefit obligation  63,000

Amortization of prior service $54,000

Less: Expected return on plan assets  -$72,000

The Amount of pension expense is $195,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered

3 0
3 years ago
A data set is summarized in the frequency table below. Using the table, determine the number of values less than or equal to 6 .
anygoal [31]

Based on the data set  that is summarized the number of values less than or equal to 6  are 20.

<h3>What is the frequency of a number?</h3>

The frequency (f) of a given value is known to be defined as the rate or the number of times the value is said to have taken place or seen in the data.

Note that the distribution of a variable is seen to be the pattern of frequencies, that connote that the set of all possible given values and the frequencies is linked to these values.

Note that according to the table, the numbers that are  less than or equal to 6  are: 5 + 3 + 2 + 3  + 4 + 3 = 20

Therefore, Based on the data set  that is summarized the number of values less than or equal to 6  are 20.

Learn more about frequency from

brainly.com/question/254161

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7 0
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