Find the limit output for fixed costs equal

Assignment Help Business Economics

Reference no: EM131236544

Suppose that inverse demand is given by

D(Q) = 56 − 2Q, Q = q₁ + q₂

and the cost function is

TC(qi ) = 20q_i + f

(a) Find the limit output for fixed costs ( f ) equal to 50, 32, 18, and 2.

(b) What is the SPNE for the entry game with the following timing: in the first-stage firm 1 can commit to its output; in the second stage firm 2 can enter and choose its output for fixed costs equal to 50, 32, 18, and 2?

Reference no: EM131236544

Questions Cloud

Identify the various actors of intergovernmental relations : Identify the various actors of intergovernmental relations involved in the case. In general, what does this case tell you about the complexity of IGR in this country and the work of public administrators in the 21st century?

Consider the two-period model of the household : In this problem you will analyse how optimal household's choices react in response to a change in the timing of distortionary taxes. Consider the two-period model of the household. Suppose that the consumer has current income of y, future income of y..

About vietnam economic outlook : About Vietnam's economic outlook (Please answer these question) In what way does the political environment in Vietnam pose both an opportunity and a threat for American MNCs seeking to do business there?

Aggregate output-consumption-employment and the real wage : Suppose that the government decides to increase G. Using a diagram, determine the equilibrium e ects of this shock on aggregate output, consumption, employment, and the real wage. Show that increasing G can potentially increase welfare. Compare your ..

Find the limit output for fixed costs equal : Find the limit output for fixed costs ( f ) equal to 50, 32, 18, and 2. What is the SPNE for the entry game with the following timing: in the first-stage firm 1 can commit to its output; in the second stage firm 2 can enter and choose its output for ..

What is the minimum capacity of an s-t cut : List all the minimum s-t cuts in the flow network pictured in Fig- ure 7.24. The capacity of each edge appears as a label next to the edge - What is the minimum capacity of an s-t cut in the flow network in Figure 7.25? Again, the capacity of each ..

Contrast the spartan and athenian cultures : Compare and contrast the Spartan and Athenian cultures. Be sure to include a discussion of the role of women in each society. The answer needs to be three full paragraphs and cited from the Frankfurter.

Looking at the bureaucracy and accountability : And, finally, we'll conclude this chapter by looking at the bureaucracy and accountability. How is the bureaucracy held accountable for the job that they do?

Discuss the myriad elements management would consider : Discuss the myriad elements management would consider when anticipating union bargaining proposals? And, when would management officials prefer centralized (multi-plant) bargaining?

User Account

All Pages