1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sedaia [141]
3 years ago
5

You are given the market demand function Q=2800-1000p, and that each duopoly firm's marginal cost is $0.07 per unit, which impli

es the cost function: C(qi)=.07qi, assuming no fixed costs for i= 1,2. The Cournot equilibrium quantities are: q1= _____; and q2 _____.
Business
1 answer:
Fed [463]3 years ago
3 0

Answer:

q1 = 910

q2 = 910

Explanation:

Given:

Q = 2800 - 1000p

Marginal cost = $0.07 per unit

Q = 2800 - 1000p

p = \frac{2800 - Q}{1000}

p = \frac{2800- q_1 - q_2}{1000}

Let's calculate profit of firm 1:

TR = p1 q1

= \frac{2800 q_1 - q_1^2 - q_1 q_2}{1000}

MR = \frac{2800 - 2q_1 - q_2}{1000}

MR = MC = 0.07

\frac{2800 - 2q_1 - q_2}{1000} = 0.07

Cross multiplying:

2800 - 2q₁ - q₂ = 70

2800 - 2q₁ = 70 + q₂

2800 - 70 - 2q₁ = q₂

2730 - 2q₁ = q₂...............(1)

Let's calculate profit of firm 2:

TR = p₁ q₂

= \frac{2800 q_2 - q_1 - q_2^2}{1000}

\frac{2800 - q_1 - 2q_2}{1000} = MR

MR = MC = 0.07

\frac{2800 - q_1 - 2q_2}{1000} = 0.07

Cross multiplying:

2800 - q₁ - 2q₂ = 70

2800 - 2q₂ = 70 + q₁

2800 - 70 - 2q₂ = q₁

2730 - 2q₂ = q₁................... (2)

Substitute 2730 - 2q₂ for q₁ in (1)...

Thus:

2730 - 2q₁ = q₂

2730 - 2(2730 - 2q₂) = q₂

2730 - 5460 + 4q₂ = q₂

-2730 + 4q₂ = q₂

-2730 = q₂ - 4q₂

-2730 = - 3q₂

q₂ = -2730/-3

q₂ = 910

Substituting 910 for q₂ in (2):

2730 - 2q₂ = q₁

2730 - 2(910)= q₁

2730 - 1820 = q₁

910 = q₁

q₁ = 910

The Cournot equilibrium quantities are: q₁= 910; and q₂ = 910

You might be interested in
Alliance Company budgets production of 35,000 units in January and 39,000 units in the February. Each finished unit requires 4 p
harkovskaia [24]

Answer:

$506,800

Explanation:

The calculation of budgeted materials cost is shown below:-

For computing the budgeted materials cost first we need to find out the total materials for production and materials to be purchased which is here below:-

Total materials for production = Budgeted production × Pounds of raw material per unit

= 35,000 × 4

= 140,000

Materials to be purchased = Total materials for production + Ending raw materials inventory - January 1 inventory

= 140,000 + (39,000 × 4 × 30%) - 42,000

= 140,000 + 46,800 - 42,000

= 186,800 - 42,000

= 144,800

Budgeted materials cost for January = Materials to be purchased × Cost per pound

= 144,800 × $3.50

= $506,800

6 0
3 years ago
Read 2 more answers
Campus Bus Service entered into a contract with Smith Bus Company to purchase 10 buses. One week before Campus Bus was scheduled
dangina [55]

Options:

  • Smith Bus should be excused from performance under the clause for the rights on improper delivery
  • Smith Bus should not be excused from performance because it did not act in good faith
  • Smith Bus should be excused from performance under the test of commercial impracticability
  • Smith Bus can exercise its right of anticipatory repudiation

Answer:

Correct answer is Option c.

<u>Smith Bus should be excused from performance under the test of commercial impracticability </u>

Explanation:

In this case, Smith cannot fulfil the contract obligation due to an unforeseen event. Hence, Commercial impracticability shall apply.

5 0
3 years ago
Your grandfather started his own business 52 years ago. He opened an investment account at the end of his third month of busines
Yakvenalex [24]

Answer:

The answer is:D) $226.78

Explanation:

To calculate the amount of money your grandfather deposited every 3 months during 52 years to get $289,209.11 we can use an excel spreadsheet and the payment function =PMT(rate,nper,pv,fv)

where:

  • rate = 5.73% / 4 = 1.4325%
  • nper = 52 x 4 = 208
  • pv = 0
  • fv = 289,209.11

PMT = $226.78

6 0
3 years ago
Waterway Industries sells radios for $50 per unit. The fixed costs are $625000 and the variable costs are 60% of the selling pri
Sonbull [250]

Answer:

29,200 units

Explanation:

The computation of new break even point is given below:-

= Fixed Cost ÷ Contribution per unit

Fixed cost

= $625,000 + $105,000

= $730,000

Variable cost per unit = 50% of selling price

= $25

So, the break even point = $730,000 ÷ 25

= 29,200 units

Therefore for calculating the break even point we simply divide the $730,000 from 25 per unit variable cost.

7 0
3 years ago
Natalle's parents keep pushing her to find a job, but she has not had much luck. She spends her time searching the Internet for
gizmo_the_mogwai [7]

Answer:

C

Explanation:

So what we can infer is that Natalle is really lazy when looking for a job. Now, we can also infer that her friends and her parents push her to get a job, but she will not go, which is why she rarely goes to interviews for one. When she does, however, just as mentioned here, she showed up half an hour late. So, I am not saying that she should blame her friends for herself being late, but out  of all of the choices, this seems the most logical for the following reasons:

A- Her Friends Have Jobs (Wrong)

B- Person-blame happens ALL of the time, not rarely. (Wrong)

C- The only logical answer (still not ok to blame people) (Correct)

D-There is plenty of info. (Wrong)

7 0
3 years ago
Other questions:
  • What challenges do you see for a company that wants to implement collaborative SCM systems? How would you meet such challenges?
    14·1 answer
  • Mary works in the accounting department of new trends sales company. her job includes reviewing expense reports submitted by man
    6·1 answer
  • Helpp please 10 points!<br><br> 2. What are Internal and external factors.
    5·1 answer
  • When managing your human resources, _____________ is the process of deciding who should be hired, under legal guidelines, to ser
    14·1 answer
  • The income statement shows the difference between a firm's income and its costs--i.e., its profits--during a specified period of
    11·1 answer
  • Joe is an accountant and plans to join a group of accountants. he compares a group in a general partnership with a group in a li
    5·1 answer
  • You hold a diversified portfolio consisting of a $10,000 investment in each of 15 different common stocks (i.e., your total inve
    7·1 answer
  • A. Following are the transactions of a new company called Pose-for-Pics.
    7·1 answer
  • You are going to deposit $21,000 today. You will earn an annual rate of 4.1 percent for 15 years, and then earn an annual rate o
    11·1 answer
  • BMC is considering upgrading the sound systems in their theaters so that their patrons can get the full experience from surround
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!