Is pizzo''s firm the dominant firm in the industry

Assignment Help Econometrics

Reference no: EM13186744

James Pizzo is the president of a firm that is the industry price leader; that is, it sets the price and the other firms sell all they want at that price. In other words, the other firms act as perfect competitors. The demand curve for this industry's product is P = 300 - Q, where is the price of the product and Q I the total quantity demanded. The total amount supplied by the other firms is equal to Qr, where Qr = 49P. (P is measured in dollars per barrel; Q, Qr, and Qb are measured in millions of barrels per week.)

a. If Pizzo's firm's marginal cost curve is 2.96Qb, where Qb is the output of his firm, at what output level should he operate to maximize profit?

b. What price should he charge?

c. How much does the industry as a whole produce at this price?

d. Is Pizzo's firm the dominant firm in the industry?

Reference no: EM13186744

Questions Cloud

Calculate the opportunity loss or regret matrix : S&B Manufacturing Inc., a manufacturer of packaging products is attempting to select a short run strategy which maximizes the long run value of expected future profits. Their long run value will depend upon their competitor's response. The control..

State the calorimeter loses only negligible quantity of heat : The density of water = 1.000 g/mL. The liquid's final volume is not changed by adding the solid. The calorimeter loses only a negligible quantity of heat.

Itemize the adjustments and the corresponding value. : The Columbia Company manufactures a battery-powered saw. Due to increased demand during the past few years, Columbia has increased plant capacity for the saw to 300,000 units. The firm's expected output and sales for the next year in their normal..

State the reaction is between furan and maleic anhydride : The reaction is between furan and maleic anhydride. Using 0.19 g of furan and 0.24 g of maleic anhydride.

Is pizzo''s firm the dominant firm in the industry : James Pizzo is the president of a firm that is the industry price leader; that is, it sets the price and the other firms sell all they want at that price. In other words, the other firms act as perfect competitors. The demand curve for this indust..

What is the optimal output for the production division : The Xerxes Company is composed of a marketing division and a production division. The marketing division packages and distributes a plastic item made by the production division. The demand curve for he finished product sold by the marketing divisi..

Compute the final pressure of gas a : Bulb B has 0.4 mole of ideal gas B at a pressure of 3 atm and is at 100 C. Calculate the final pressure of gas A when the two bulbs are open to each other.

Draw bonding orbitals that result from combinations : Sketch bonding orbitals that result from combinations of the following orbitals on separate atoms (a) pz and dz2 (b) s and pz (c) dx2-y2 and dx2-y2

What price should managers charge in each market : The demand curve for the firm's output in the second market is P2 = 80 - 2Q2, where P2 is the price of the product and Q2 is the amount sold in the second market. The firm's marginal cost curve is 5 + Q, where Q is the firm's entire output (destin..

User Account

All Pages