Determine what is the value of the product sold

Reference no: EM13225145

Firm 1 has a single retail location at the left hand extreme point of a mile-long Main Street while firm 2 is located at the right hand extreme. There are 100 consumers who are evenly distributed over this market. The value of the product sold is V=$10 to any consumer. The marginal cost of production is $1.40 to firm 1 and $3.20 to firm 2. The transportation cost is $1 per mile.

Use the red line (cross symbol) to draw the valuation, V, across the market. Use the orange line (square symbol) to draw the full price line for those who purchase from firm 1, i.e., the line showing the price paid by a consumer plus transport cost. Use the purple line (diamond symbol) to draw the full price line for those who purchase from firm 2. Use the X drop tool to mark the location of marginal consumers who are indifferent between buying from firm 1 or firm 2

Reference no: EM13225145

Questions Cloud

Explain what energy in joules per photon : Cosider a light sensitive reaction. What energy, in joules per photon, is needed to drive the reaction if delta H rxn is equal to 305 kJ/mol?

Holistic system of tqm management : Outline and critique how Samsung has introduced and developed a holistic system of TQM management and customer focused management.

How does the policy affect national saving : Suppose that Congress is considering an investment tax credit, which subsidizes domestic investment. a. How does this policy affect national saving, domestic investment, net capital outflow, the interest rate

Find out the major species present in aqueous solutions : Identify the major species present (other than water) in aqueous solutions of the following substances. Include aggregation states. Note that this text uses H3O+.

Determine what is the value of the product sold : Use the red line (cross symbol) to draw the valuation, V, across the market. Use the orange line (square symbol) to draw the full price line for those who purchase from firm 1, i.e., the line showing the price paid by a consumer plus transport cos..

Strategic rewards systems and organizational success : Examine company policies, procedures, and practices found in company publications and articles on the organization completed by researchers.

What is the nash equilibrium price charged by firm 2 : Firm 1 has a single retail location at the left hand extreme point of a mile-long Main Street while firm 2 is located at the right hand extreme. There are 100 consumers who are evenly distributed over this market. The value of the product sold is ..

Explain the major species present in an aqueous solution : Write the acid/base equilibrium reaction (net-ionic) for the major species present in an aqueous solution of each of the following substances. Include aggregation states. Note that this text uses H3O+.

Describe demand and marginal revenue curves faced by firm : An emissions fee is paid to the government, whereas an injurer, who issued and held liable, pays damages directly to the party harmed by an externality. What differences in the behavior of victims might you expect to arise under these two arrangem..

User Account

All Pages