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igor_vitrenko [27]
1 year ago
10

Consider an oligopoly in which firms choose quantities. The inverse market demand curve is given by P=a−b(q1+q2), where q1 is th

e quantity produced by Firm 1, and q2 is the quantity produced by Firm 2. Each firm has a marginal cost equal to c. What is the equilibrium market quantity if the two firms acted as a cartel (i.e., attempt to set prices and outputs together to maximize total industry profits). How about the equilibrium market price? Instead of cartel, suppose now firm 1 acts as the leader and firm 2 acts as the follower. What is the Stackelberg equilibrium quantities determined by each firm? What is the equilibrium market price? Find π1π2 using the Stackelberg quantities and price. Whose profit is higher?

Business
1 answer:
katen-ka-za [31]1 year ago
8 0

Answer:

Profit maximizing condition is MR = MC

Under Stackelberg model, follower best response function is used to find quantity sold by leader.

See attached pictures.

Explanation:

See attached pictures for detailed explanation.

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You have determined that an OCF of $151,406 will result in a zero net present value for a project, which is the minimum requirem
oee [108]

Answer:

It should be accepted as the cash flow is greater than minimum

Explanation:

We should determinate if he project can generate a cashflow of 151,406 after taxes to be accepted:

market x market share = sales in units

140,000 units x 8.5% = 11,900 units

sales x contribution less fixed cost = income before taxes

11,900 x 56.11 - 387,200= 280,509

after tax 280,509 x (1 - 21%) = 221,602.11‬

project cash flow > minimum cash flow

      221,602.11      >         151,406

It should be accepted as the cash flow is greater than minimum

7 0
1 year ago
A country's ability or intention to meet its financial obligations determines its ________. political risk economic risk legal r
MArishka [77]
<span>A country's ability to meet its financial obligations is the main determinant of its "economic risk". Whether a country will be able to repay debts which it takes on, such as in the form of bond issues, is a key driver of the willingness of investors to make capital contributions to a country, and the return that they expect in exchange for assuming that risk.</span>
5 0
2 years ago
Campbell Soup uses electronic networks to improve the efficiency of outbound logistics. These networks also helped Campbell Soup
Reil [10]

Answer:

a Value-Chain Analysis

Explanation:

A value-chain analysis is a model that helps to describe the full range of activities needed to create a product from the conception i.e. the procurement of raw materials, manufacturing functions, marketing and the distribution of the products which leads to an increase in production efficiency so that a company can deliver maximum value for the least possible cost.

8 0
1 year ago
In October, Pine Company reports 18,600 actual direct labor hours, and it incurs $126,540 of manufacturing overhead costs. Stand
VladimirAG [237]

Answer:

The total overhead variance in hours taken is 3,600 hours

The total overhead cost variance is $1,110

Explanation:

The variance is about the different between budget/ standard and actual figures.

Standard hours allowed for the work done is 22,200 hours; and the predetermined overhead rate is $5.75 per direct labor hour. So total cost budgeted for work done is $127,650 = $5.57 x 22,200 hours

The total overhead variance in hours taken  = standard hours of 22,200 - actual direct labor hours of 18,600 = 3,600 hours

The total overhead cost variance  = standard cost - actual cost = $127,650  - $126,540 = $1,110

7 0
2 years ago
Price discrimination is the practice of charging different prices for the same product that are not justified by cost difference
Sergeu [11.5K]

Answer:

<h2>Because firms in a perfectly competitive market does not have any price making ability or market power,they are not able to engage in any price discrimination.Hence,the correct answer is  the last option or True,because perfectly competitive firms have no market power.</h2>

Explanation:

In Microeconomics,perfectly competitive markets are characterized by many buyers and sellers in which the sellers and firms usually sell homogeneous or identical products.Now,as there are many firms in the market and no barriers to entry for new firms into the market,the market competition or rivalry is high and hence,no single firm has the ability to determine and manipulate the market price according to their own economic advantage because if any firm tries to do so,it will loose significant market share as most customers would move to other sellers/firms charging lower price or regular market price.Therefore,the market price is fixed in the perfectly competitive market as the firms do not have price making or market power.Consequently,they are not able to charge different prices to different customers according to their maximum willingness to pay or differences in price preferences.

3 0
1 year ago
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