Answer: The demand is shared with the new company that enters the market.
Explanation: The Cournot duopoly is an imperfect competition model, that is, the law of supply and demand is not freely used, in which two companies with equal costs compete with homogeneous goods in a static environment, that is, with the same characteristics.
For example: A leading brand of soda in the market, get a competitor that has the same characteristics. People will prefer one of the two brands and they will always lead the market, but they will have to divide the market.
Answer:
a) $22,010
b) $3,780
c) $25,790
Explanation:
a) In calculating the value of inventory still left, the total value needs to be calculated first,
= (80 freezers * $540) + $820 ( transport fees)
= 43,200 + 820
= $44,020
40 out of 80 freezers have not been sold so,
= 40/80 * 44,020
= $22,010
b) In calculating the profit, subtract the expenses from the sales
Sales = 40 * 700
= $28,000
= 28,000 - Cost of refrigerators - commission of 6% of sales - advertising - installation
= 28,000 - 22,010 - (28,000*0.06) - 180 - 350
= $3,780
c) The amount remitted by the consignor will be,
= Sales - commission - advertising - installation
= 28,000 - (28,000 * 0.06) - 180 - 350
= $25,790
Answer:
b. between $100 and $200
Explanation:
Producer surplus: The producer surplus is a difference between the willing price declared by the producers and the price the producers receives for supplying the goods and services.
In mathematically,
Producer surplus = Willing price - Receiving price
= $400 - $300
= $100
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