Find the equilibrium quantities and the price of concrete

Assignment Help Microeconomics

Reference no: EM133426090

Question: Two local concrete producers dominate the market in Concrete County: Firm 1 and Firm 2. The concrete produced by the two firms is identical. Throughout the problem, assume that there is no collusion between the firms. The two firms' total monthly costs are given by TC1=20,000+200q1 TC2=40,000+100q2 where q1 is the output of firm 1, and q2 is the output of firm 2 (in tons of concrete). The demand curve for concrete in Concrete County is as follows: P=2000-2Q where Q=q1+q2

1. Compute the reaction function for each firm.

2 Find the equilibrium quantities and the price of concrete in Concrete Country. Calculate the monthly profit of each firm in equilibrium.

Reference no: EM133426090

Questions Cloud

Design an efficient dynamic programming algorithm to find : You are given an n by m grid G, and each square (i, j) has a; apples. Starting from the bottom-left square, you will make your way to the top-right square

Company external and internal business environment : Was Amazon's diversification through Amazon Go appropriate, given the company's external and internal business environment?

Assess the current state of employee engagement in system : Assess the current state of employee engagement in the system. In your assessment, explain why employees may be unmotivated and disengaged.

How does the nist framework help to align risk management : How does the NIST Framework help to align risk management with other business objectives within an organization? What are the 6 Phases described in the NIST

Find the equilibrium quantities and the price of concrete : Find the equilibrium quantities and the price of concrete in Concrete Country. Calculate the monthly profit of each firm in equilibrium.

Draw original budget constraint : Draw original budget constraint (with a $500 SSDI benefit) and the budget constraint under alternative A

How gdp and its components is affected : Jack buys a farm at $A and earns $B from his first year harvest. How GDP and its components is affected? (Rise, fall, unchanged/ consumption, investment etc.

Identify clients complaints-criminal justice system : Identify which forums clients may use to pursue their complaints: criminal justice system, civil court, voluntary professional association, licensing board.

Derive the monopoly price when only firm operates : Derive the monopoly price when only firm operates. Calculate consumer surplus and each firm's producer surplus. (c) Derive the monopoly price when only firm

User Account

All Pages