Question: Assume a market demand function specified as Q-100-P and marginal cost (MC) = 10, if quantities supplied are 2, and 2, for firm A and

Assume a market demand function specified as Q-100-P and marginal cost (MC) = 10, if quantities supplied are 2, and 2, for firm A and Firm B respectively,
(i). Determine reaction functions for the firms.
(ii) Determine Q, and 2.
(iii). Calculate the industry's price.

Step by Step Solution

★★★★★

3.39 Rating (146 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The detailed answer for the above question is provided below i Reactio... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

A homogeneous products duopoly faces a market demand function given by P = 300 - 3Q, where Q = Q1 + Q2. Both firms have a constant marginal cost MC = 100. a) What is Firm 1's profit-maximizing...

Assume that consumers view tax preparation services as undifferentiated among producers, and that there are hundreds of companies offering tax preparation in a given market. The current market...

Assume that the sugar market is perfectly competitive with a market demand function given by Q 1000 - 2P and the market supply function given by Q = 3P, where Q is quantity and P is price. (i) Solve...

A sphere of 80 mm diameter lies at a depth of 500 m in sea water. The bulk modulus of sphere is 200 GPa. If the specific weight of sea water is 10.3 kN/m, the decrease in the volume (in mm) of the...

The Carrefour Group reports the following description of its trading securities (titled financial assets reported at fair value in the income statement). These are financial assets held by the Group...

The Challenge Case Whole Foods Decides to Open in Detroit and its related Challenge Case Summary were written to help you understand the management concepts contained in this chapter. Answer the...

=+Do flexible schedules change the demand for resources?

Your supervisor asks you to analyze the potential purchase of Drew Company by your firm, Pierson, Inc. You are provided the following information (in millions): Required: a. Prepare a pro forma...

Culver Company purchased a new machine on October 1,2022 , at a cost of $113,600. The company estimated that the machine will have a salvage value of $13,600. The machine is expected to be used for...

For the dumbbell in Figure let m?= 0.02 kg, a?= 0.3 m, and E?= (600 N/C)i. Initially the dumbbell is at rest and makes an angle of 60 o with the x?axis. The dumbbell is then released, and when it is...

The graph of the second derivative f* of a function fis shown. State the x-coordinates of the inflection points of f. (Enter your ans 2 X -4 -2 - 2 2 4 6 8 10 -4 -6 -8 -10 X =

11. Given the following Venn diagram, the number shown represent the number of items in each section. For example, there are 18 items in A only. Find n(S) a. b. Find P(C) C. Find n(AB)' 8 d. B Find...

For Exercises 19-26, refer to the functions r, p, and q. Find the indicated function and write the domain in interval notation. (See Example 3) r(x) = -3x 19. (r - p)(x) p(x) = x + 3x q(x) = 1-x 20....

We tend to think of work center scheduling and the Theory of Constraints in a manufacturing environment. Bottlenecks exist in every process. Think about the checkout line at Walmart, getting served...

A steel tank is to be positioned in an excavation, where a = 20 and P = 445 lb as shown in the figure. P1 30 Using trigonometry, determine the magnitude of the force P such that the resultant R of...

Describe one e-commerce business in the retail or services industry that is considered an industry leader. Develop a detailed list of the organization's offerings and how these offerings compare to...

To ensure the survival of Bumiputera entrepreneurs in facing difficulties arising from the COVID-19 pandemic, the government has allocated RM300 million in the form of working capital loans under the...

Find the radius of convergence in two ways: (a) Directly by the CauchyHadamard formula in Sec. 15.2. (b) From a series of simpler terms by using Theorem 3 or Theorem 4.

What is Walras' Law? What is its significance?

A firm uses the inputs of fertilizer, labor, and hothouses to produce roses. Suppose that when the quantity of labor and hothouses is fixed, the relationship between the quantity of fertilizer and...

Why is it the case in a long-run monopolistically competitive equilibrium that the firm's demand curve is tangent to its average cost curve? Why could it not be a long-run equilibrium if the demand...

28.Astatistician is interested in testing the hypotheses and H0:p> 120 H^.ft Answered: 1 week ago

16. A hot dog vendor at a football game must decide in advance how many hot dogs to order. He makes a profit of $.10 on each hot dog which is sold, and he suffers a $.20 loss on hot dogs which are...

20. In Exercises 15, 16, 17, and 19, what would the optimal estimates be if the loss function were quadratic instead of linear [that is, if the loss function were of the form (9.13.1)]?