There are only 2 firms in a market facing same demand curve, Ask an Expert

Economics

There are only 2 firms in a market facing same demand curve as follows:

Q = 120 – 10P

The marginal cost of each firm are, respectively,

MC1 = 4 + 0.2 Q1 and MC2 = 4 + 0.2 Q2

a) Find the profit maximization level of output for both firms.

b) Which firm is more vulnerable in case of aggressive price war between these two firms? Why?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91695832

Have any Question?Write your Review or question?

Related Questions in Business Economics

The caloric consumption of 44 adults was measured and found

The caloric consumption of 44 adults was measured and found to average 2,113. Assume the population standard deviation is 270 calories per day. Construct confidence intervals to estimate the mean number of calories consu ...

People were polled on how many books they read the previous

People were polled on how many books they read the previous year. How many subjects are needed to estimate the number of books read the previous year within one book with 99% confidence? Initial survey results indicate t ...

1 describe using pseudocode as described in class an

1. Describe using pseudocode as described in class an algorithm that takes a list of n integers a1, a2, ..., an, and finds the average of all negative integers in the list. Be sure to initialize the variables. 2. The bub ...

A mixture of three water samples will test positive for a

A mixture of three water samples will test positive for a contaminant if at least one of the samples contains it. If the contaminant is present in 7% of samples, find the probability that: 1. The mixture tests positive: ...

Describe how government-supported big business during the

Describe how government-supported big business during the Reagan Era effected the U.S. economy and labor unions.

Istrade zero sum explainthe ways in which itisandthe ways

Is trade zero sum? Explain the ways in which it is and the ways in which it is not as well as an overall assessment explaining why or why not?

Mccann co has identified an investment project with the

McCann Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $800 2 1,090 3 1,350 4 1,475 a. If the discount rate is 7 percent, what is the present value of these cas ...

A bag contains 15 red marbles and 13 blue marbles two

A bag contains 15 red marbles and 13 blue marbles. Two marbles are randomly drawn without replacement. Find the probability that both marbles are red.

How would you explain the concept of a quality adjusted

How would you explain the concept of a quality adjusted life year? When is it appropriate to use "QALYs" instead of simply improved life expectancy as the outcome measure in an economic evaluation?

A firm has hired you as a consultantnbspthis firm is not

A firm has hired you as a consultant. This firm is not perfectly competitive--it has some control over prices. This firm is currently selling 1000 units, generating $10,000 in revenues and $12000 in total costs. The mar ...

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