Suppose that the duopolists Carl and Simon face a demand
function for pumpkins of Q = 16,800 − 800P, where Q is the total
number of pumpkins that reach the market and P is the price of
pumpkins. Suppose further that each farmer has a constant marginal
cost of $1 for each pumpkin produced. If Carl believes that Simon
is going to produce Qs pumpkins this year, then the reaction
function tells us how many pumpkins Carl should produce in order to
maximize his profits. Carl’s reaction function is RC(Qs)
what?
Answer should be 8,00-Qs/2
please show work
Suppose that the duopolists Carl and Simon face a demand function for pumpkins of Q =...
4. Carl and Simon are two rival pumpkin growers who sell their pumpkins at the Farmers’ Market in Lake Witchisit, Minnesota. They are the only sellers of pumpkins at the market, where the demand function for pumpkins is q = 3, 200 − 1, 600p. The total number of pumpkins sold at the market is q = qC + qS, where qC is the number that Carl sells, and qS is the number that Simon sells. The cost of producing...
arl and Simon are two rival pumpkin growers who sell their 27.1 (0) C pumpkins at the Farmers' Market in Lake Witchisit, Minnesota. They are the only sellers of pumpkins at the market, where the demand function for pumpkins is q 3.200-1.600p. The total number of pumpkins sold at the market is q qs, where qc is the number that Carl sells 323 NAME mber that Simon sells. The cost of producing pu mpkins for either farmer is $.50 per...
Consider two symmetric Cournot duopolists who face inverse market demand of p = 140−Q. Suppose that they each have long-run cost functions Ci(qi) = 20qi for i = 1, 2. (a) Draw a graph containing the demand and marginal cost curves. (b) What are the efficient quantity and price, QC and pC? How much total surplus is generated at this quantity and price? (c) What are the monopoly quantity and price, QM and pM ? How much profit would a...
Suppose the total cost function for a firm is given by C (Q) = 100 + Q2. If the firm sells its output in a perfectly competitive market at a price of $10, what level output should the firm produce to maximize profits or minimize losses? What will be the level of profits or losses if the firm makes the optimal decision?
Suppose the cost function for a firm is given byC(Q) = 60 + 4Q+ 2Q2.(a)If the firm sells output in a perfectly competitive market and other firms in the industry sell output at a price of $20, what level of output should the firm produce to maximize profits or minimize losses?(b)What will be the level of profits or losses if the firm makes the optimal decision?(c)After you’ve worked the problem, reconsider the original situation (with price of $20) but with...
3. Suppose the firm in monopolistic market faces the following demand function: Q = 5,000 - 125P ; and total cost function TC - 50 +0.00802 a. Write the equation for the inverse demand function. (1 pt) b. Find the marginal revenue function. (1 pt) c. How much output should the manager produce to maximize profit? What price should be charged for the output? (2 pt) d. Calculate the marginal cost function. (2 pt) e. At the output level, how...
Suppose a firm has a total cost function, T C = 3/8(Q^2) − 50, and therefore marginal costs of MC = 3/4Q. Assume the market for this firm’s goods is perfectly competitive with a market price, P = 24. (a) Given the information above, is the firm in the short-run or long-run? (1 point) (b) Write down the firm’s marginal revenue equation. (1 points) (c) How many units should the firm produce if it wants to maximize profit? (3 points)...