Determine the marginal revenue for ?rm

Assignment Help Business Economics
Reference no: EM133064994

Assume that Firm A and Firm E are two ?rms in the market that produce identical goods. Given that the inverse demand function faced by the ?rms are P = 259 - 3({24 + Q's] The total costs ?ced by the ?rms are as follows: Te].1 = 311:5.1 andTE'B = 2:25 where Q is output in units (round up to 1 decimal points only) and price is in RM; Firms decide independently the production level and the price charged by each ?rm is determined by the total amount produced by the two ?rms.

1. Determine the marginal revenue for each ?rm.

ii. Determine the reaction function for each ?rm.

iii. Determine the output produce by each ?rm in equilibrium.

iv. Determine the equilibrium pro?ts for each ?rm.

Reference no: EM133064994

Questions Cloud

Multicultural multi-ethnic reframing of us history : In the book A different Mirror written by Ronald Takaki he discusses a multicultural multi-ethnic reframing of US history. collectively what does this tell us a
What are considered good economic institutions : 1. What are considered good economic institutions? What are some of the impacts of the lack of good institutions? For what key reasons do many developing countr
What is the duration : Consider a 10-year bond that makes semiannual coupon payments, which was issued 1 year and 167 days ago. If the coupon rate is 8% and the yield to maturity is 4
Calculate inflation adjustment to the principal : Suppose you purchased 100 000 par value TIPS. Coupon rate is 1.8% and it is paid semiannually. At the end of 6 month period, CPI is 1.9%
Determine the marginal revenue for ?rm : Assume that Firm A and Firm E are two ?rms in the market that produce identical goods. Given that the inverse demand function faced by the ?rms are P = 259 - 3(
Compute the materials variance : However, a 20% direct material spoilage calculated on input quantities occurs during the manufacturing process. Compute the materials variance
Identify three contents in artificial intelligence : Identify three contents in Artificial Intelligence (AI) which can be used in e-commerce and explain two applications of AI in e-commerce.
Explain what is gis : Read the following mini-case study about Wine lovers and answer the questions.
Discusses three main marketing tips for business start-ups : Write a blog using the Marketing Blog template as a guide that discusses three main marketing tips for business start-ups.

Reviews

Write a Review

Business Economics Questions & Answers

  What is the future worth in sally savings account

What is the future worth in Sally's savings account at the end of the 7 years, if the account earned 6% annual interest, compounded monthly?

  Impact of the covid-19 pandemic on the global economy

There is no way to tell exactly what the economic damage from the global COVID-19 pandemic will be.

  Contribution to holes in the ozone by cattle

Which model is Joe's best choice if he is presenting a speech on the contribution to holes in the ozone by cattle?

  Does demand curves slope downward

Does demand curves slope downward? How do wages affect labor supply?

  Why do individuals hold money when it does not

Why do individuals hold money when it does NOT provide the services that, say, a house does?

  What is the nash equilibrium price of lemonade

The marginal cost of lemonade is the $0.25 for both stands. Fixed Costs are equal to $5 for each stand. What is the Nash equilibrium price of lemonade?

  Extensions of long-term unemployment benefits

During the Great Recession, as in previous extended recessions, the U.S. Administration stressed job training programs and enacted repeated extensions of long-term unemployment benefits in response to persistently high levels of unemployment .

  Explain how natural monopolies cause market failure

Explain how natural monopolies Cause market failure? How is deadweight loss associated with this form of market measured? What is a typical form of government intervention to correct it? How effective is this type of intervention?

  Present cost of future consumption

"A higher interest rate raises the future cost of present consumption." Use an example to show that both statements are correct.

  Consumer tax burden is equal to the producer tax burden

Suppose that the pre-tax price of gasoline is $1 per gallon. A tax of $0.50 is imposed and is paid by consumers to the government. What must the gross price of gasoline be after the tax so that the consumer tax burden is equal to the producer tax bur..

  A forest stand yields a recurring timber harvest income

A forest stand yields a recurring timber harvest income of $50,000 that occurs every 45 years. Using a 7% interest rate, find the present value of the perpetual harvest income stream assuming that the first income occurs 45 years from now.

  Important things to consider

What are the most important things to consider when making a pricing decision for a good whose demand as well as is elastic.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd