Question: Firm 1 produces output X with a cost function C1 (X ) = X2 200 Firm 2 produces output Y with a cost function C2

Firm 1 produces output X with a cost function C1 (X ) = X2 200 Firm 2 produces output Y with a cost function C2 (X, Y) = - 2 X. Both firms face competitive markets. The competitive price of X is 6 and the competitive price of Y is $5. There is no entry or exit into this market. What is the socially optimal production of X

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

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!

Firm 1 produces output X with a cost function C1 (X ) = X2 Firm 2 produces output Y with a cost function C2 (X, Y) = Y2 200 - 2 X. Both firms face competitive markets. The competitive price of X is 7...

Two chemical firms belonging to different countries compete "a la Cournot" selling their identical product in the world market. Inverse market demand is p= 1 Q Firm 1 produces with constant marginal...

6. Two firms face the following demand curve: P = 64 70, where Q = 01 + 02. The cost functions for Firm 1: C1 (01) = 22 + 801. The cost function for Firm 2: C2 (02) = 10 +1002. a. Suppose both firms...

Just D!!!! Suppose that the domestic market for small specialized calculators and similar office equip- ment is currently served by an incumbent firm 1. The firm has the following cost schedule: C1...

Regulating Market Power in the Commons: In exercises 21.9 and 21.10, we investigated the case of many firms emitting pollution into a lake. We assumed the only impact of this pollution was to raise...

11 Which of following is an example of a cartel? A.)automotive industry B.)health care industry C.)airline industry D.)OPEC ^ 12 Perfectly competitive market structures have an incentive to enter or...

The following questions are of micro economics. Please help me with better understanding. 2. You have collected the following data on output and total variable costs: \" m m m a. b. Identify the...

Part 1. 1). The market demand function for a good is given by Q = D(p) = 800 ? 50p. For each firm that produces the good the total cost function is TC(Q) = 4Q+( Q2/2) . Recall that this means that...

Question 4 : Externalities and Pigouvian Taxes Firm 1 produces good x and firm 2 produces good y . The two firm are neighbors. They both sell output i n competitive markets and the competitive prices...

Answer all the questions correctly. Write introduction about your in-service presentation topic. type 1 diabetes , Create outline that identifies and describes the important content areas for your...

This is the question in that above questio. Two equations are mentioned. So i will rake screenshot of that too 4.2-1. Mean Thermal Conductivity in a Cylinder. Prove that if the thermal conductivity...

Videoangiography is used to measure blood flow and determine the status of circulatory function. In order to quantify the videoangiograms, blood vessel diameter and blood velocity are needed such...

Income Statement Income Gross sales 5750000 Sales returns and allowances 200000 Net sales 5550000 Cost of goods sold 2300000 Gross profit 325000 Dividends received from stock investments in...

Some recruiters will do a _ _ _ _ _ investigation on you, according to the "Unsconscious Bias" video. A . social - media B . relationship - history C . forensic D . clinical

What strategy for LMD is needed during a recession?

How can reflection for leaders and managers be implemented?

360-degree feedback is scary but powerful for leaders and managers. Discuss.