FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Two firms are competing on a market with demand P-47-3Q by simultaneously choosing what price to charge. Assume they can charge any real price

 

Two firms are competing on a market with demand P-47-3Q by simultaneously choosing what price to charge. Assume they can charge any real price (not just limited to integer numbers) Whoever charges the lowest price can capture the whole demand. If prices are the same, firm 1 captures the whole demand (and 2 does not sell anything) Firm 1 has a marginal cost equal to 5. Firm 2 has marginal cost equal to 8. What is the equilibrium price in this market? [Select ] If firm 2's marginal cost increased to 30, what would be the equilibrium price in this market? [Select]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To find the equilibrium price in the market we need to determine the price at which both firms have ... blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Smith and Roberson Business Law
Smith and Roberson Business Law

Authors: Richard A. Mann, Barry S. Roberts

15th Edition

1285141903, 1285141903, 9781285141909, 978-0538473637

More Books

Students explore these related Finance questions

Question

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

Answered: 3 weeks ago

Question

Entrepreneurial Skill and Market Conditions: We often treat all firms as if they must inherently face the same costsbut managerial, or entrepreneurial, skill in firms can sometimes lead to a decrease...

Answered: 3 weeks ago

Question

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...

Answered: 3 weeks ago

Question

In Exercises 6780, begin by graphing the square root function, f(x) = x. Then use transformations of this graph to graph the given function. h(x) = x + 1 1 Vx+1-1

Answered: 3 weeks ago

Question

During 2011, Yale Company acquired some of the 50,000 outstanding shares of the common stock , par $12, of Carol Corporation as available-for-sale investments. The accounting period for both...

Answered: 3 weeks ago

Question

5-32A. (Complex present value) You would like to have $50,000 in 15 years. To accumulate this amount, you plan to deposit each year an equal sum in the bank, which will earn 7 percent interest...

Answered: 3 weeks ago

Question

To what extent do you agree that the primary goal of psychotherapy should be observable behavior change?

Answered: 3 weeks ago

Question

(a) Using the letters provided, indicate how each of the items should be reported in an Enterprise Fund statement of cash flows for Kauffman County. 1. Cash received from sales to public . . . . . ....

Answered: 3 weeks ago

Question

Six-month U.S. dollar LIBOR is currently 4.25 percent; your firm issued floating-rate notes indexed to six-month U.S. dollar LIBOR plus 50 basis points. What is the amount of the next semi-annual...

Answered: 3 weeks ago

Question

Accrual income versus cash flow for a period. Thomas Book Sales, Inc., supplies textbooks to college and university bookstores. The books are shipped with a proviso that they must be paid for within...

Answered: 3 weeks ago

Question

In its standardizedform, what properties does the normal distributionhave? 1a) The normal distribution with mean 1 and standard deviation 0 b)The normal distribution with mean 0 and standard...

Answered: 3 weeks ago

Question

Explain the importance of staffing in business organisations

Answered: 3 weeks ago

Question

What are the types of forms of communication ?

Answered: 3 weeks ago

Question

Explain the process of MBO

Answered: 3 weeks ago

Question

What is the H-C-H bond angle in a methane molecule? [A] 120 [B] 75 [C] 109.5 [D] 150

Answered: 3 weeks ago

Question

What risks do companies face doing business internationally that they do not face doing business domestically? Do you think now is a good time to invest internationally? If you were to invest...

Answered: 3 weeks ago

Question

Prove that the mean heat capacities C P H and C P S are inherently positive, whether T > T 0 or T Answered: 1 week ago

Answered: 3 weeks ago

Question

Identify and explain (a) the questions of law determined by a court in conducting a review of a rule or order of an administrative agency, and (b) the three standards of judicial review of factual...

Answered: 3 weeks ago

Question

On April 29, 2010, Kirsten Fletcher and John E. Marshall III jointly signed a lease to rent an apartment for the term beginning on July 1, 2010, and ending on June 30, 2011, for a monthly rent of...

Answered: 3 weeks ago

Question

In 1972, South Carolina enacted a Coastal Zone Management Act requiring any person using land in a critical area to obtain a permit for any uses other than those to which the critical area was...

Answered: 3 weeks ago

Question

The susceptibility of catfish to a certain chemical pollutant was determined by immersing individual fish in 2 liters of an emulsion containing the pollutant and measuring the survival time in...

Answered: 3 weeks ago

Question

Stevens (1966), citing Dimmick and Hubbard (1939), reported data from 20 studies of the color perception of unitary hues. The wavelength (in millimeters) of light called green by subjects in each...

Answered: 3 weeks ago

Question

Real estate prices depend, in part, on property size. The house size X (in hundreds of square feet) and house price Y (in thousands of dollars) of a random sample of houses in a certain county were...

Answered: 3 weeks ago

Previous Question Next Question