Reference no: EM131253680
Consider again the situation described above, but now imagine that each firm sets a price, selling as many units of the good as it can at that price. Each firm is aware that
• It will not be able to sell any goods if its price exceeds the other firm's price, because every consumer will prefer to buy from the other firm.
• If the two prices are the same, total purchases will be determined by the demand equation, and each firm will sell an equal quantity of goods.
• If its price is lower than the other firm's price, every consumer will prefer to buy from it rather than the other firm, and its total sales will be determined by the demand equation.
A Bertrand equilibrium in this environment is a pair of prices (p1 , p2 ) such that, when firm 1 charges p1 and firm 2 sells p2 , neither firm can raise its own profits by unilaterally changing its price. What is the Bertrand equilibrium?
|
What is the average daily output of the firm''s workers
: Suppose that the firm randomly selects 20% of its workforce to be laid off. What is the average daily output of the firm's workers after the lay-offs?
|
|
Discuss your strengths and weaknesses as an influencer
: Discuss your strengths and weaknesses as an influencer. What things could you change based on what you have read in Influencer
|
|
Why is baldwin selling well but making losses
: 1) Look at the income statement survey. Notice that both Baldwin and Ferris have sales revenue worth $46.8 million. However, Baldwin is making losses of $1.3 million while Ferris is making profits over $3 million. a. Why is Baldwin selling well bu..
|
|
Describe how you used the problem solving steps
: Think of an important problem you had to solve during the last few months. - Describe how you used the problem-solving steps discussed in this chapter to resolve the problem.
|
|
What is the bertrand equilibrium
: A Bertrand equilibrium in this environment is a pair of prices (p1 , p2 ) such that, when firm 1 charges p1 and firm 2 sells p2 , neither firm can raise its own profits by unilaterally changing its price. What is the Bertrand equilibrium?
|
|
Benefit from using data from a social networking site
: Identify a problem that would benefit from using data from a social networking site as input to a decision support system. - What difficulties might be encountered in capturing and trying to use this data?
|
|
Determine a key trend that supports the implementation
: From the e-Activity, determine a key trend that supports the implementation of either a community health information network (CHIN) or regional health information organizations (RHINO) in today's health care organizations
|
|
Analyze the first american loan
: Create a spreadsheet to calculate and analyze the following for the First American loan: a) Calculate the total dollar interest cost on the loan. Assume a 365-day year.
|
|
How much goodwill should parma recognize from acquisition
: Firenze Company developed a specialized banking application software program that it licenses to various financial institutions through multiple-year agreements. On January 1, 2014, these licensing agreements have a fair value of $812,500 and represe..
|