What would best given supply quantity be for each company

Assignment Help Business Economics

Reference no: EM13976334

Assume there is a market with only two profit maximizing companies (duopol) where each company has MC = AVC = 20 and no fixed costs. Also assume that market demand is Q = 100 - 0.5p

a) If both companies compete and chooses their given supply quantities simultaniously, what would the best given supply quantity be for each company? What would the profit be for each company?

Reference no: EM13976334

Questions Cloud

What are the profit maximizing price and quantity : Suppose a monopolist has a constant marginal cost of $20 per unit, and a fixed cost of $100. The demand curve for the product of the monopolist is given by P=100-Q, and its corresponding marginal revenue is given by MR=100-2Q, where Q is the amount o..

Characteristics a monopolistic competitive market : Which of the following is/are characteristics a monopolistic competitive market? Which of the following is/are not characteristics of oligopoly market? Which of the following is/are possible outcome(s) of Cartels?

Under an adjustable pegged exchange rate system : If the official exchange rate of the British pound sterling were changed from $2.80 to $2.40 under an adjustable pegged exchange rate system, the pound sterling would be

Implied change in income as a result of stimulus package : In order to financially stimulate the nation, the Federal government injected $900 billion dollars into the economy. However, the results were less than spectacular. What was the implied change in income as a result of the stimulus package?

What would best given supply quantity be for each company : Assume there is a market with only two profit maximizing companies (duopol) where each company has MC = AVC = 20 and no fixed costs. Also assume that market demand is Q = 100 - 0.5p. If both companies compete and chooses their given supply quantities..

Identify as the requirements for capitalism : Economics history question- Answer and explain the following about Karl Marx and Capitalism. What 2 things does Marx identify as the requirements for Capitalism? Explain the origins of each, in turn. Describe the Theory of Surplus Value in detail. Wh..

How does the separation of risk work : Thus a long term corporate bond could actually be sold to three separate persons. One would supply the money for the bond; one would bear the interest rate risk; and one would bear the risk of default. How does the separation of risk work? What finan..

Describe a financial environment as fragile : Hyman Minsky’s “financial instability hypothesis” employs the key concept of financial “fragility.” What does it mean to describe a financial environment as “fragile”? Finally, on what grounds does Minsky also claim that, in the long-run (over the co..

Derive an expression for velocity of circulation of money : Assume GDP is at the full employment level Y*. Derive an expression for the velocity of circulation of money. What factors does it depend on, and how?

User Account

All Pages