Plz answer the following two frqs in DETAILS. Espacially for questions with "Explain" mark.
The following one is the 1st question.
10. Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to "Calculate," you must show how you arrived at your final answer. Use the graph provided below to answer parts (a)-(e).Marginal Cost Price, Cost ($) Average Total Cost 32 Average Variable Cost N 21 18 12 Demand 10 0 6 16 23 33 44 58 62 Quantity Marginal Revenue EyesOn, a profit-maximizing firm, has a patent on cameras, making it the only producer of that camera. The graph above shows EyesOn's demand, marginal revenue, average total cost, average variable cost, and marginal cost curves. (a) Identify the quantity that maximizes EyesOn's profit. Explain. (b) At the quantity identified in part (a), does EyesOn earn a positive economic profit, a negative economic profit, or zero economic profit? Explain. (c) Calculate EyesOn's total revenue if the firm produces the allocationy efficient quantity. Show your work. (d) At a price of $10, will EyesOn continue to produce or will it shut down in the short run? Explain. (e) Assume that at 44 units, the average total cost is $22. If the total wages paid by EyesOn increase by $220, calculate the firm's new average total cost at that output. Show your work. Assume that EyesOn's patent expires. ViewTime, a company with the capability to produce the same camera as EyesOn, intends to enter the market and charge a lower price than EyesOn for the camera. EyesOn is considering whether to maintain its price or to lower its price to match View Time's price. ViewTime is considering whether or not to advertise its entry into the market. The matrix below shows the payoffs for each combination of strategies, and both players (EyesOn and ViewTime) have complete information. The first entry in each cell represents EyesOn's payoff and the second entry represents View Time's payoff. Each player independently and simultaneously chooses its strategy. Use the matrix provided below to answer parts (f)-(h). ViewTimeNot Advertise Advertise Lower Price $1,000 , $2,600 $4,000 , $3,400 EyesOn Maintain Price $2,000 , $6,500 $3,000 , $7,500 (f) Does EyesOn have a dominant strategy? Explain using numbers from the payoff matrix. (g) Identify the Nash equilibrium. Explain why this is a Nash equilibrium using information from the payoff matrix. (h) Suppose ViewTime makes a credible commitment to EyesOn that if EyesOn maintains the price, then ViewTime will pay EyesOn $500. Will this offer result in a Nash equilibrium with different strategies from those identified in part (g) ? Explain using numbers from the payoff matrix.12. Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to "Calculate," you must show how you arrived at your final answer. Use the graph provided below to answer parts (a)-(e).Marginal Cost Average Total Cost Average Variable Cost Demand 4 1O 16 22 29 . Quantity Marginal Revenue GarysGym, a prot-maximizing rm, has a patent on an exercise device, making it the only producer of that device. The graph above shows GarysGym's demand, marginal revenue, average total cost, average variable cost, and marginal cost curves. (a) Calculate GarysGym's total revenue if the rm produces the allocatively efcient quantity. Show your work. Cb} Starting at a price of $39, if GarysGym were to decrease the price by 5%, will the quantity demanded increase by more than 5%, by less than 5%, or by exactly 5%? Explain. (c) At a quantity of 16 units, is GarysGym's marginal product increasing, decreasing, or constant? Explain. (d) Identify the quantity that maximizes GarysCiym's prot. Explain. (e) At the quantity identied in part (d), does GarysGym earn a positive economic prot, a negative economic prot, or zero economic prot? Explain. Assume that GarysGym's patent expires. EFitness, a company with the capability to produce the same exercise device as GarysGym, intends to enter the market and charge a lower price than GarysCiym for the exercise device. GarysGym is considering whether to maintain its price or to lower its price to match E-Fitness' price. E-Fitness is considering whether or not to advertise its entry into the market. The matrix below shows the payoffs for each combination of strategies, and both players {GarysGym and E-Fitness) have complete information. The first entry in each cell represents GarysGym's payoff and the second entry represents E-Fitness' payoff. Each player independently and simultaneously chooses its strategy. Use the matrix provided below to answer parts (f)-(h). E-Fitness Advertise Not Advertise Maintain Price $350, $450 $700, $300 GarysGym Lower Price $580, $500 $460, $200 (f) Does GarysGym have a dominant strategy? Explain using numbers from the payoff matrix. (g) Identify the Nash equilibrium. Explain why this is a Nash equilibrium using information from the payoff matrix. (h) Suppose GarysGym makes a credible commitment to E-Fitness that if E-Fitness does not advertise, then GarysGym will pay E-Fitness $100. Will this offer result in a Nash equilibrium with different strategies from those identified in part (g) ? Explain using numbers from the payoff matrix
