Inverse market demand curve for this unique product

Assignment Help Business Economics

Reference no: EM13742729

You are the manager of Taurus Technologies, and your sole competitor is Spyder Technologies. The two firms’ products are viewed as identical by most consumers. The relevant cost functions are C(Qi) = 4Qi, and the inverse market demand curve for this unique product is given by P = 160 – 2Q. Currently, you and your rival simultaneously (but independently) make production decisions, and the price you fetch for the product depends on the total amount produced by each firm. However, by making an unrecoverable fixed investment of $200, Taurus Technologies can bring its product to market before Spyder finalizes production plans. What are your profits if you do and do NOT make investment--do not use the $200 as part of the equation if you do NOT make the investment.

Reference no: EM13742729

Questions Cloud

Label income and substitution effects for both goods : Good 1 is a normal good and good 2 is an inferior good. Using 3 budget lines and 2 indifference curves, illustrate the effect of an increase in P2 on the consumption of both x1 and x2. Label income and substitution effects for both goods

Horizontal merger guidelines : How to define the relevant market to conduct the merger analysis? Explain briefly what is the Hypothetical Monopolist Test. You should discuss what the market definition is and how to include market participants of a relevant market. Explain what are..

Consume more of a good when price is low is depicted : The economic principle that consumers are willing to consume more of a good when price is low is depicted by the:

Watch making firm in a competitive market : Suppose you are a manager of a watch making firm in a competitive market. Your cost of production is given by C=200+2Q2 where Q is the level of output and C is the total cost.

Inverse market demand curve for this unique product : You are the manager of Taurus Technologies, and your sole competitor is Spyder Technologies. The two firms’ products are viewed as identical by most consumers. The relevant cost functions are C(Qi) = 4Qi, and the inverse market demand curve for this ..

Think about a firm that you have done business with recently : Think about a firm that you have done business with recently. What industry does this firm belong to? For example, McDonald's is a firm in the fast food industry. What market structure would this industry fall under? What are the names of other firms..

What percentage did the price of the newspaper rise : The New York Times cost $0.15 in 1970 and $2.00 in 2011. The average wage in manufacturing was $3.36 per hour in 1970 and $23.09 in 2011. by what percentage did the price of the newspaper rise? by what percentage did the wage rise?

Explain what corporate social responsibility : In your own words, explain what corporate social responsibility (CSR) is. Name two examples of social responsible companies you know and explain why you consider them so.

When companies expand into the international arena : When companies expand into the international arena, they do so either because their home market has matured or because they see real opportunities in the foreign market. Discuss which kinds of international strategies are most appropriate for compani..

User Account

All Pages