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Sindrei [870]
3 years ago
13

Amy and Soma discover a stream that flows wine. Amy and Soma decide to bottle the wine and sell it. The marginal cost and the fi

xed cost to bottle wine are 54 and zero respectively. The market demand for bottled wine is given by: P = 904-50, where Q is the total quantity of bottled wine produced and Pis the market price of bottled wine. Answer the following questions. a. What are the economically efficient (in other words, perfectly competitive) price and quantity of bottled wine? Show your work. How much will be the profit? (1+1+2+2 - 6 points) b. If Amy and Soma were to collude with one another and produce the pront-maximizing monopoly quantity of bottled wine and share the profit equally, how much bottled wine will each one of them produce? Show your work. At what price? How much profit will each one of them earn? (2+2+242 - 8 points) C. Suppose that Amy and Soma act as Cournot duopolists. How much bottled wine will each one of them produce? Show your work. At what price? How much proht will each one of them earn? (2+8+2+2 -14 points) d. Suppose Soma isa naive Cournot duopolist so that Amy can act as a Stackelberg leader. What level of output will each one of them produce? Show your work. What will be the price of wine? How much will be the profit for each one of them? (4+6+2+4 - 16 points)

Business
1 answer:
Alinara [238K]3 years ago
5 0

Answer

Profit of Amy = (229)(90) - 9(90)

=20610  - 360

=20250

Profit of Sonia (229)(95) - 4(45)

=1035-180

=10125

The answer and procedures of the exercise are attached in the following images.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in the following images.

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suppose you invest $2250 in a CD that earns 3% APR and is compound quarterly. the cd matures in 2 years. how much will this cd b
Oksi-84 [34.3K]

Pn = P0(1+r)∧n

Pnis future value of P0

P0 is original amount invested

r is the rate of interest

n is the number of compounding periods (years, months, etc.)

P(n) = 2250(1+(.03/4)∧8

** since the interest is compounding quarterly, you need to divide the rate by 4, the number of quarters in a year.

Then you would do the math.

8 0
2 years ago
If during 2011 the Republic of Sildavia recorded a value added of $78 billion, wages of $40 billion, profits of $8 billion, and
Otrada [13]

Answer:

$12 billion.

Explanation:

Given: Value added during 2011= $78 billion.

           Total sales= $90 billion.

Intermediate goods are the goods used to produce final product and it is not included in the calculation of GDP, however, it is included in the value of final goods.

Now, finding the value of intermediate goods purchased.

Intermediate goods= Total\ sales - Total\ value\ added

⇒ Intermediate goods= \$ 90\ billion - \$ 78 \ billion

∴ Intermediate goods= \$ 12\ billion

Hence, value of intermediate goods purchased is $12 billion.

7 0
2 years ago
How is the role of government determined in the american free enterprise system?
Whitepunk [10]

i would believe that the government plays an important role in a market economy As we saw in our discussion of competitive markets, a free enterprise system is largely self-regulating. Therefore, government plays a limited, but important, role, allowing individuals to make most of the economic decisions.

4 0
3 years ago
Read 2 more answers
The standard format rules for a professional letter should be followed. <br><br><br> True or false.
Luda [366]

Answer:

True.

Explanation:

To write a professional letter, some standard format rules need to be followed.

It is necessary that the letter is written using a formal vocabulary, with clear and precise information, in the appropriate format, containing date, information about your professional profile, about the company and a final greeting.

To achieve an important objective, such as getting a job, it is important to have good writing skills to write a professional letter, in order to demonstrate through your arguments, your skills and competences, which can contribute to the success of a company.

6 0
3 years ago
In the united states, business cycles have occurred against a backdrop of a long-run trend of?
Rus_ich [418]

In the united states, business cycles have happened against a backdrop of a long-run trend of rising real GDP.

<h3>What is Gross Domestic Product?</h3>

Gross domestic product (GDP) is a monetary indicator of the total market value of all the finished products that nations produce over a given time period. This measurement is frequently changed before it can be trusted as an indicator because of how complicated and subjective it is. The total monetary or market worth of all the finished goods and services produced within a nation's boundaries during a certain time period is known as the gross domestic product (GDP).

Economic activity goes through periods of boom and then contraction during business cycles. Both the general welfare of society and the welfare of private entities are affected by these developments. Business cycles are a sort of variation that may be found in the overall economic activity of a country. A business cycle is made up of expansions that occur roughly at the same time in many different economic activities, followed by contractions that are similarly widespread (recessions).

Hence, In the united states, business cycles have happened against a backdrop of a long-run trend of rising real GDP.

To learn more about Gross Domestic Product refer to:

brainly.com/question/1383956

#SPJ4

3 0
1 year ago
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