Suppose that there are only two firms firm a and firm b in, Ask an Expert

Economics

Suppose that there are only two firms (Firm A and Firm B) in the market for decorative lampshades. Let the inverse demand function and the total cost function be given by: P = 50 –Q and TC = 2Q

Assume that Firm A and Firm B sell identical lampshades. The firms compete with each other bychoosing the price at which they sell their products. Firms set their prices simultaneously.

(a) How many lampshades would be produced by the entire industry? What price would be charged foreach lampshade?

(b) What is the profit earned by each firm in the industry?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M92188393

Have any Question?Write your Review or question?

Related Questions in Business Economics

What are the main things to remember about elasticity

What are the main things to remember about elasticity, supply and demand, tax incidence, government controls on the market, and economic theories?

In 2011 new jersey governor chris christie announced that

In 2011, New Jersey Governor Chris Christie announced that he would pull the state out of the Regional Greenhouse Gas Initiative (RGGI), which is a coalition of 10 states that agreed to reduce their emissions of carbon d ...

Tell us about the starbucks corp what it does and makes

Tell us about the Starbucks Corp. what it does, and makes; publically traded or privately owned; how big, etc. 'what' is; it is exposition. Although who is the founders and history of the company; and its sense of social ...

Why would the communities in the territories not be listed

Why would the communities in the territories not be listed for government transfer payments? Why do cities and towns get government transfer income?

Research scenarionbspa community psychologist is interested

Research Scenario: A community psychologist is interested in whether people's self-reported degree of religious belief predicts their self-reported feelings of well-being. She administers two questionnaires to 17 indivi ...

1 the following table shows the prices and quantity

1. The following table shows the prices and quantity demanded of Alberta wheat in 2014 and 2015. The change in 2012 resulted from exceptional weather, resulting in a bumper crop. 2014 2015 Bushels demanded 1.74 billion 1 ...

Fabric is cut into pieces mean962 standard deviation02

Fabric is cut into pieces. Mean=96.2 Standard deviation=0.2. Randomly select 20 pieces. Determine the probability that 19 or fewer have a length less than 96.5 inches. Determine the probability that all 20 are between 96 ...

After paying 150 you are allowed to open a newspaper

After paying $1.50, you are allowed to open a newspaper vending machine freely (i.e. get as many as you want). In contrast, a soft drink vending machine only drops one can after you pay the same amount of money. Why? Ple ...

Cnsider simple linear regressionyi beta0 beta1xi

Consider simple linear regression yi = β0 + β1xi + εi. (1) Let zi = a+ bxi and yi = γ0 + γ1zi + δi . (2) Show that the predicted values of the least-square estimators in (1) and (2) are identical for all xi and zi

Link changes in unemployment inflation wages and gdp to one

Link changes in unemployment, inflation, wages, and GDP to one another and how they impacted each other during periods of economic decline (recessions) and periods of economic growth (expansion) over the past 10 years.

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert