What is the current profits of the two firms

Reference no: EM13208827

Inverse demand function is P = 10-2Q (in millions) Firm 1 has a marginal cost of $2 and Firm 2 has a marginal cost of $6. Current market price is $8 - each firm has 50 percent of the market and each firm has to pay one year's rent of $1 million. What is the current profits of the two firms?

Reference no: EM13208827

Questions Cloud

Depict the structure of all alkenyl side products : Draw the structure of all alkenyl side products that could be formed by dehyradation of 2-methyl-2-butanol by and E1 mechanism. propose a mechanism for the formation of the alkene side products.

Explain what has happened to the price of drugs : A survey show an increase in drug use by young people. In the ensuing debate, two hypotheses are proposed: Reduced police efforts have increased the availability of drugs on the street. Cutbacks in educationefforts have decreased awareness of the dan..

Explain the vapor pressure of liquid ni : The vapor pressure of liquid Ni is 0.100 torr at 1606 degrees C and 1.00 torr at 1805 degrees C. The molar heat of fusion of Ni is 3.25 kcal/mol. Determine the vapor pressure of solid Ni at 1200 degrees C.

Determine the capitalized cost of a series of cash flows : Determine the capitalized cost of a series of cash flows starting at the end of the first year with $400 and increasing at the rate of $100 for the next 5 years. The series of cash flows from year 1 to 6 repeats forever. MARR= 6%

What is the current profits of the two firms : Inverse demand function is P = 10-2Q (in millions) Firm 1 has a marginal cost of $2 and Firm 2 has a marginal cost of $6. Current market price is $8 - each firm has 50 percent of the market and each firm has to pay one year's rent of $1 million.

What is the current value of pure : What is the current value of Pure? b. For the first year, compute the dividend yield and the capital gains yield

What is the present value of the anticipated petroleum : A petroleum geologist estimates that the present annual production of 300000 barrels of oil from a group of 10 wells will decrease as follows over a 19 year life: Years 1 - 4, 300000 barrels/year,, Years 5-10, 215000 barrels/year, 11-15, 125000 and..

What cost of capital should catola use in evaluating project : What cost of capital should Catola use in evaluating project and what is the NPV of the project and should Catola go ahead with it?

Compare the way the two systems would affect the cost : Others meter water use and charge according to the quantity of water customers use. Compare the way the two systems would affect the cost of water use at the margin and the use of water by rational consumers.

User Account

All Pages