Calculate marginal revenue curves-develop demand schedules

Assignment Help Business Economics

Reference no: EM13833393

A firm in an oligopolistic industry has identified two sets of demand curves. If the firm is the only one that changes prices (ie., other firms do not follow), its demand curve takes the form Q=82-8P. If, however, it is expected that competitors will follow the price actions of the firm, then the demand curve is of the form Q=44-3P.

a) Develop demand schedules for each alternative, and draw them in a graph.

b) Calculate marginal revenue curves for each

c) If the present price and quantity position for the firm is located at the intersection of the two demand curves, and competitors follow any price decrease but do not follow a price increase, show the demand curve relevant to the firm.

d) Draw the appropriate marginal revenue curve

e) Show the range over which a marginal cost curve could rise or fall without affecting the price the firm charges.

Reference no: EM13833393

Questions Cloud

Supply and demand schedules-what is the equilibrium price : Below are supply and demand schedules for calzones at a local pizzeria. What is the equilibrium price? At what price is there a shortage of 60 calzones? At what price is there a surplus of 60 calzones? At a price of $13, there is a surplus of how ma..

Develop a medium to long-term strategy for australia post : Assume that top management would like you to develop a medium to long-term strategy for your organisation or alternatively for one of the following organisations.

Prepare cash budget for the months of july through september : Prepare a cash budget for the months of July through September 2012. Show supporting schedules for the calculation of receivables and payables. WIll Slopes be in a position to pay off the $30000 one year note that is due on October 1, 2012. If not, w..

Final control lab : The SCR in Figure 1 below requires a 3 V trigger. Using Multsim, design a system by which the gears are shifted when a CdS photocell resistance drops below 4k.

Calculate marginal revenue curves-develop demand schedules : A firm in an oligopolistic industry has identified two sets of demand curves. If the firm is the only one that changes prices (ie., other firms do not follow), its demand curve takes the form Q=82-8P. Calculate marginal revenue curves for each. Devel..

Promote lifelong harmonious social interaction : promote lifelong harmonious social interaction

What is the average fraction of gdp this amount consisted : Collect data on the monetary base in the U.S. What was the size of the monetary base in August of 2007? What about in August of 2009? If the inflation tax is the ?M and the monetary base is our measure of M, then how much revenue was raised from the ..

What is the cost per piece produced : You have a machine that costs $30,000 now and can be sold for $13,000 in year 4. The machine costs $12,000 each year to operate and the raw materials cost $10,000 each year. The machine produces 500 pieces each year. Using an interest rate of 7%, wha..

How does this add value and costs : Please select a brand and describe the marketing channel the brand will pass through on the way to the end user. How does this add value and costs?

User Account

All Pages