User Account

All Pages

Identify shop 1 reaction function to firm 2 output

Assignment Help Basic Statistics
Reference no: EM132488629

The inverse demand for tacos is given by P = 10 - 0.02Q, where P is the price per taco and Q is the total number of tacos brought to market. There are two taco shops in the market. Shop 1's cost function is given by C1 = 0.01q12, where q1 is the number of tacos it brings to market. Shop 2's cost function is given by C2 = 0.01q22, where q2 is the number of tacos it brings to market. Given that the two shops compete by setting output (Cournot), answer the following.

a. Identify shop 1's reaction function to firm 2's output.

b. Identify shop 2's reaction function to firm 1's output.

c. Identify the equilibrium output level of each shop and the equilibrium price for tacos.

Reference no: EM132488629

Questions Cloud

Summarize the law of diminishing marginal utility : Summarize the law of diminishing marginal utility; describe the process of utility maximization.
Determine what would expect the cfo to say : Determine What would expect the CFO to say? You own 19% of a company that you do business with and are considering buying
What is the breakeven product volume : If Jewels4Missions has $350,000 in annual fixed costs, what is its breakeven product volume? What is its breakeven sales volume?
Find the marshallian demands for x1 and x2 : Consider a simple two good, two person, pure exchange economy with divisible goods. Consider the endowments e1 = (10, 2) and e2 = (2, 10) for consumer 1 and con
Identify shop 1 reaction function to firm 2 output : Identify shop 1's reaction function to firm 2's output. Identify shop 2's reaction function to firm 1's output.
Compute the variable and fixed cost elements : Compute the variable and fixed cost elements using the high-low method. In a short paragraph describe how the knowledge of this information can be useful.
What are some of the implicit costs jeff : Jeff works at a grocery store in the summer. One year he considers the possibility of operating and owning a hot dog stand instead of working at the store.
What is the equation of the isoquants : a. What can you say about the returns to scale for this production function? (already answered)
Comment on the maximum value average cost can take : At 20 units of output, the slope of a firm's average cost curve is recorded as +1.5 and the marginal cost is $300.

Reviews

Write a Review

Basic Statistics Questions & Answers

  Explain whether the median of the observations to be higher

For each of the following datasets, explain whether you would expect the mean or the median of the observations to be higher:- In a rural farming community, for each household the number of children is measured.

  Choosing a montessori school

Explain why comparing children whose parents chose a Montessori school with children of other parents would not show whether Montessori schools perform better than other programs?

  Confidence interval for all united 448 flights

Below is a list or airborne times for United Airlines flight 448 from Albuquerque to Denver on 10 randomly selected flights:

  Probability that the hand contains at least two aces

Twenty integers are chosen at random, and without regard to order, from the integers 0 to 100, inclusively.

  Is the process ergodic in the mean

Consider a discrete-time wide sense stationary random processes whose autocorrelation function is of the form- Is the process ergodic in the mean?

  Obtain a third equation showing the firm revenue

A firm has analysed its sales and profitability and found that its profit can be represented as: F = -100 + 100Q - 5Q2.

  Question regarding the confidence intervals

A hardware retailer has average sales of $64,235 with a standard deviation of $5,918 for a 12-month period. The mean monthly sales for all retailers in the chain are $59,844. Is this hardware retailer's sales significantly different from all retai..

  What is the probability that six of the observed values

Suppose that F is a continuous dj. on the real line; and let at and 02 be numbers such that F(at) - 0.3 and F(a,) - 0.8.

  What is the likelihood that the person is using the drug

A random person tests positive. What is the likelihood that the person is using the drug?

  Score from a distribution of scores

How is calculating a percentile for a mean from a distribution of means different from doing so for a score from a distribution of scores

  Discuss the high-definition television models

Three new high-definition television models are compared. The distances (in miles) over which a clear signal is received in random trials for each of the models

  Function at least the number of hours guaranteed

For how many hours should the tube be guaranteed to function, to achieve a probability of 0.95 that it will function at least the number of hours guaranteed?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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