Reference no: EM13893790
Suppose that any firm intending to produce SOMA must build an integer number of plants: 0,1,2,... Building Q plants costs each firm 3.5 x Q dollars. Each plant produces one unit of SOMA. If firm 1 builds Q1 plants and firm 2 builds Q2 plants, the market price p for one unit of SOMA will be 9 - (Q1 + Q2). For example, if firm 1 builds 2 plants and firm 2 builds 4 plants, the market price will be 9 - (2 + 4) = 3 per unit. At this price firm 1 will make a profit of 2 x 3 - 2 x 3.5 = -1 while firm 2 will make a profit of 4 x 3 - 4 x 3.5 = -2. Assume, no firm will build more than 4 plants.
SHOW ALL EXCEL FORMULAS
1) Set up a 4-by-4 table that records the profits of each firm for each possible choice of the number of plants to build. Then, use your table to answer the questions below.
2) If there was a single firm capable of producing SOMA, how many plants would it install to maximize profit?
3) Suppose not there are two firms (aware of each other) capable of producing SOMA with the technology described above. Each chooses the number of plants it must build independently of the other and at the same time. What is the equilibrium number of plants that will be built by each?
4) Suppose that firm 1 builds before firm 2 (firm 1 is aware that firm 2 will decide after firm 1 decides and firm 2 will see how many plants firm 1 has built before having to decide). How many plants should firm 1 build and what will firm 2's reaction be?
|
Why are marsupials found almost exclusively in australia
: Propose an explanation as to why there is a relatively high incidence of dwarfism among the Old Order Amish of Lancaster, Pennsylvania. What is the minimum criterion used to determine if two similar individuals are members of the same species?
|
|
Suggest a product of line architecture
: Using the example of the weather station system- suggest a product line architecture for a family of applications that are concerned with remote monitoring and data collection.
|
|
Determining the account the revenue from advertising
: For every subscription purchased, the magazine gets $20 in advertising revenue. Taking into account the revenue from advertising, should the publisher lower or raise its annual subscription price p? What should the new profit maximizing level of p..
|
|
Which of following is not an instance of evolutionary change
: If the incidence of sickle cell anemia (a recessive trait) in a population is .09, what is the frequency of the gene for the trait?
|
|
Possible choice of the number of plants to build
: Set up a 4-by-4 table that records the profits of each firm for each possible choice of the number of plants to build. Then, use your table to answer the questions below.
|
|
What hypotheses are built into mpcs balanced scorecard
: What hypotheses are built into MPC's balanced scorecard? Which of these hypotheses do you believe are most questionable and why?
|
|
Identify key ethical problems facing the company
: identify key ethical problems facing the company
|
|
Determining the energy consumption management
: Describe the reasons for choosing to implement an energy-monitoring programme over the other options in energy consumption management and the resulting benefits of this research for this company when making future energy decisions.
|
|
Describe the contributions of lyell, malthus, lamarck
: Outline the major contributions of scientists to concepts in evolution. Describe the contributions of Lyell, Malthus, Lamarck, Darwin, and Gould and Eldridge. Please write one paragraph or a few sentences on each of the above mentioned people.
|