Identified two sets of demand curves

Assignment Help Business Economics

Reference no: EM131164914

A firm in an oligopolistic industry has identified two sets of demand curves. If the firm is the only one that changes prices (i.e., 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 on 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: EM131164914

Questions Cloud

Identify the type of all kinematic joints : What is the function of this mechanism and how will it be affected by moving the pivot point up and down?

Why is a key important in a database : This week's reading contained a section on interviewing the users. Why is this process important? Think about who uses the tool, what they use it for, and what is important for them to get the job done. Have you ever been involved in any of these ..

What is the estimated beta coefficient of your company : What is the estimated beta coefficient of your company? What does this beta mean in terms of your choice to include this company in your overall portfolio

What is the amount of avoidable costs : The manufacturing overhead consists of $32,000 of costs that will be eliminated if the components are no longer produced by Jones. The remaining manufacturing overhead will continue whether or not Jones makes the components. What is the amount of ..

Identified two sets of demand curves : A firm in an oligopolistic industry has identified two sets of demand curves. If the firm is the only one that changes prices (i.e., other firms do not follow), its demand curve takes the form Q = 82 − 8P. Develop demand schedules for each alternativ..

Month of february on advertising : If the hotel spends an additional $20,000 in the month of February on advertising they feel that they can expect occupancy rate to increase by 10%.

Different models of competition between firms : Research three different models of competition between firms that are highly interdependent (note: there are over a dozen so you should have no problem finding many different models to examine). Discuss the similarities and differences between these ..

What price should the company charge : If demand falls to 80,000 units and the company wants to continue to earn a 50% return, what price should the company charge?

What is the importance of public relations to the marketing : What is the importance of public relations to the Marketing Communications Plan? What is the role of trade promotions in the Marketing Communications Plan

User Account

All Pages