User Account

All Pages

Market converges to marginal cost as n increases

Assignment Help Business Economics
Reference no: EM131405536

(a) This was also illustrated in class and in the lecture notes. Where {a; b; cg} > 0, p(Q) = a-bQ, and TC(q) = cq, show that the equilibrium quantity chosen by a Cournot competitor in an n-firm oligopoly is equal to qi =(a-c)/(n + 1)b

(b) Show that the equilibrium price in this market converges to marginal cost as n increases.

Reference no: EM131405536

Questions Cloud

Decisions made by individual firms and households : The demand for money is determined by decisions made by individual firms and households, based on the variables described earlier in this discussion; it is not controlled by the Federal Reserve. How does this fact make it impossible for the Fed to..
Social security system : What plan does the Trump administration have to save the Social Security System?
What conclusion you reach with regard to bank managers claim : From given sample results, and using the 0.05 level of significance, what conclusion would the student reach with regard to the bank manager's claim?
Calculate expected value of losses and standard deviation : As the risk management of a small chain of restaurants, you are analyzing the losses incurred over the last 10 years. Using these data, calculate the Expected value of losses, Variance, Standard Deviation and Coefficient of Variation.
Market converges to marginal cost as n increases : (a) This was also illustrated in class and in the lecture notes. Where {a; b; cg} > 0, p(Q) = a-bQ, and TC(q) = cq, show that the equilibrium quantity chosen by a Cournot competitor in an n-firm oligopoly is equal to qi =(a-c)/(n + 1)b (b) Show th..
Profit-maximizing monopolist with costs : (a) Consider a profit-maximizing monopolist with costs of C(q) = cq and an inverse demand of p(Q) = a-bQ, where {a; b; c} > 0. What is the rm's objective equation as a function of q?
What is the function of this slope : Assume that Y is on the vertical axis and X is on the horizontal axis. What is the function of this slope
What reasons might correctional institutions have to map : The problem of additional health-related diseases will arise in the prison system. There will be more HIV, more tuberculosis, and other communicable diseases. Pick a position on the question of mapping inmates for genetic predisposition to a spe..
Four basic types of market structures : Although there are many different examples of economies in the world, all of them demonstrate one or more of the four basic types of market structure. For this assignment, in your own words

Reviews

Write a Review

Business Economics Questions & Answers

  Ethical issues it professionals face

Scenario: Your role is to support the Human Resource Department. The Head of Talent Acquisition wants you to search the Internet including social media sites, to determine if job applicants are demonstrating any online behavior that would jeopardi..

  How farmer jones carrots and buys beets

How Farmer jones carrots and buys beets. His income eLasticity of demand for both carrots and beets is posotive.an increase in the price of carrots causes him to.

  Define product differentiation

Define product differentiation. Explain how firms use brand management and advertising to differentiate their product. Describe an advertising strategy that you could use to differentiate your movie theater (you must come up with a real-world strateg..

  Spent traveling on vacation domestically

Jane receives utility from days spent traveling on vacation domestically(D) and days spent traveling on vacation in a foreign country(F), as given by the utility function Upper U left parenthesis Upper D comma Upper F right parenthesis equals 10 D..

  What is the consumers marginal rate of substitution

A consumer has a budget of $200 to spend on bowling (b) and tutoring sessions (t). Assume that each game of bowling costs $16 and each tutoring session costs $20. The consumer derives utility from tutoring sessions and bowling according to the utilit..

  Different time discount rates

Suppose Fred and Barney have different time discount rates. There are two periods of life: “young”, and “old”. Fred’s present value of receiving a dollar next period is given by $1/(1+r), r=0.5 whereas Barney’s value for r is 0.02. Fred and Barney ar..

  Other exposures influence the success

In relation to China and the United States explain how transaction and other exposures influence the success or failure with international trade, including types of financing options available.

  Composite or weighted index for housing construction costs

Prepare a composite (weighted) index for housing construction costs in 2008 with the following data:

  Q1 what is the most important case that the tax as supreme

q1. what is the most important case that the tax as supreme court has well sales?q2. discuss why tickets scalping at

  Q1 suppose that ex is the exchange rate among the us dollar

q.1. suppose that ex is the exchange rate among the u.s. dollar and the chinese yuan in that ex indicates the number of

  Critique another case study from the modules

American (domestic) current event, firm, or market. Foreign (outside of the U.S.) current event, firm, or market. Favorite Case Study from the Modules Forum. Critique (challenge) another Case Study from the Modules.

  Optimal capital structure after the breakup

When the Bell System was broken up, the old AT&T was split into a new AT&T in addition to seven regional telephone companies. The specific reason for forcing the breakup was to increase the degree of competition in the telephone industry. Do you thin..

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