Reference no: EM13990632
Suppose there are two firms with one demand function. This same (common) demand function is: [from HW]
Q = 1,000 , 40P with MR = 25 , 0.05Q
However, each firm has its own cost function which is different. These two different cost functions are shown below respectively:
Firm 1: 4,000 + 5Q
Firm 2: 3,000 + 7Q
a. What price should each firm charge if it wants to maximize its profit (or minimize its loss)?
b. If price war breaks out, most likely price will fall. Two most likely prices in that event are $13 and $12. Which company, firm 1 and firm 2, is more vulnerable to price war when P = $13 and why?
c. Which company, firm 1 or firm 2 is more vulnerable to price war when P = $12 and why?
d. In view of your answers in (b) and (c), discuss advantage and disadvantage of cost structure between firm 1 and firm 2.
e. Long run average cost curve decreases when output elasticity is greater than one.What is the implication of your answer in (b) and (c) for the shape of long run average cost curve?
Metric and metrizes the same topology
: 1. On R2 let d((x, y), (u, v)) := ((x - u)2 + (y - v)2)1/2 (usual metric), e(x, y) := |x - u|+ |y - v|. Show that e is a metric and metrizes the same topology as d.
|
What is the direction of the child coriolis acceleration
: A child at point A walks at constant rate toward the center of a merry-go-round which is rotating at constant angular velocity ω counter clockwise. What is the direction of the child's Coriolis acceleration?
|
Find the most recent financial statements
: List and explain at least 2 specific challenges that the competitor company's managers may face when trying to improve these ratios.
|
Determining the same cardinality
: Let A and B be two sets such that there exists a function f from A onto B and a function g from B onto A. Show, assuming AC, that A and B have the same cardinality. Hint: If h(y) ∈ f -1({y}) for all y in B, then h is 1-1 from B into A.
|
What price should each firm charge
: Which company, firm 1 or firm 2 is more vulnerable to price war when P = $12 and why?
|
How do animals differ from these protist ancestors
: Animals probably evolved from protists. How do animals differ from these protist ancestors? Which of the following levels of structure encompasses all the others?
|
Application of the recursion principle
: a
|
How do you convert glucose into 6-phosphate fructose
: How do you convert glucose into 6-phosphate fructose?
|
Formulate a linear programming model for given problem
: Betty Malloy, owner of the Eagle Tavern in Pittsburgh, is preparing for Super Bowl Sunday, and she must determine how much beer to stock. Betty stocks three brands of beer - Yodel, Shotz, and Rainwater. Formulate a linear programming model for this..
|