Use the following to answer questions 11-14: Suppose that firms A, B, C and D are...

Use the following to answer questions 11-14:

Suppose that firms A, B, C and D are Bertrand duopolists in the salt industry. The market demand curve can be specified as Q=100-3p, Q=q_A+q_B+q_C+q_D.

(The firms choose prices simultaneously.)

The cost to firm A is C(q_A)=7q_A.

The cost to firm B is C(q_B)=3q_B.

The cost to firm C is C(q_C)=7q_C

The cost to firm C is C(q_D)=3q_D

Firm A will earn? (piA=?)

Firm B will earn? (piB=?)

Firm C will earn? (piC=?)

Firm D will earn? (piD=?)

Expert Solution

Rahul Sunny answered 8 months ago

Part 1: answer (a), (b), (c), and (d). Part 2: answer (a), (b), (c), and (d)....

Part 1: answer (a), (b), (c), and (d). Part 2: answer (a), (b), (c), and (d). Godspeed, and good luck!!! CC11 Cookie Creations Natalie and her friend Curtis Lesperance decide that they can benefit from joining Cookie Creations and Curtis’s coffee shop. In the first part of this problem, they come to you with questions about setting up a corporation for their new business. In the second part of the problem, they want your help in preparing financial information following...

Suppose that firms A,B,C and D are Bertrand duopolists in the salt industry. The market demand...

Suppose that firms A,B,C and D are Bertrand duopolists in the salt industry. The market demand curve can be specified as Q=100-3p, Q=qA+qB+qC+qD. The cost of firm A is C(qA)=7qA The cost of firm B is C(qB)=3qB The cost of firm C is C(qC)=7qC The cost of firm D is C(qD)=5qD Firm A will earn? Firm B will earn? Firm C will earn? Firm D will earn?

Use the following to answer questions 6-10: Suppose that firms 1, and 2 are Cournot duopolists...

Use the following to answer questions 6-10: Suppose that firms 1, and 2 are Cournot duopolists in the salt industry. The market demand curve can be specified as Q=20-p, Q=q1+q2 (The firms choose their quantities simultaneously.) The cost to firm 1 is C(q1)=1q1. The cost to firm 2 is C(q2)=2q2. 6) Find Firm 1 optimal production levels q1=?. Select one: a. 0<q1<2 b. 2<q1<4 c. 4<q1<6 d. 6<q1 e. None of the above 7) Find Firm 2 optimal production levels...

Problem 11 Use the following information for questions a-d. Answer each question independently. Myers Inc. purchases...

Problem 11 Use the following information for questions a-d. Answer each question independently. Myers Inc. purchases a piece of equipment. At the date of purchase, the equipment had the following characteristics: Cost 800,000 Estimated useful life 8 Estimated salvage value 20,000 Productive life in hours 10,500 a) Assume the equipment was purchased on January 1, 2014 and the firm used double declining balance for depreciation. How much depreciation expense is recognized during 2015? b) Assume the equipment was purchased on...

Use the following information for questions 11 through 14. In a paper, “The effect of marquee...

Use the following information for questions 11 through 14. In a paper, “The effect of marquee players on sports demand,” by Todd Jewell, the author regresses US soccer attendance on various attributes of the team, stadium, opponent and city, and also on the presence of some particularly famous players, like Beckham and Blanco. The dependent variable is log attendance; so the coefficient should be interpreted as a percent change. That is, a coefficient of 0.43 means the effect of a...

1) Use the following information to answer questions a, b, and c. Base Brewery (BB) is...

1) Use the following information to answer questions a, b, and c. Base Brewery (BB) is considering buying a new goobering machine for $300,000. It will be fully depreciated using MACRS seven-year asset class for depreciation. Shipping and transportation to the factory will cost $45,000. Running the machine will require an immediate increase in working capital (inventory) of $7,000. The machine will increase annual sales revenue by $80,000, and will decrease annual costs by $20,000. The new machine will require...

PREGUNTA 14 Use the following information to answer questions 14 to 18. to A certain brand...

PREGUNTA 14 Use the following information to answer questions 14 to 18. to A certain brand of apple juice is supposed to have 64 ounces of juice. Because the punishment for under-filling bottles is severe, the target mean amount of juice is 64.05 ounces. It is known that the standard deviation of the population is 0.06. However, the filling machine is not precise, and the exact amount of juice varies from bottle to bottle. The quality – control manager wishes to verify that...

Use the following information to answer questions 7-11 [The following information applies to the questions displayed...

Use the following information to answer questions 7-11 [The following information applies to the questions displayed below.] The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $ 33,000 $ 58,000 Work in process 9,600 18,200 Finished goods 59,000 33,400 Activities and information for May Raw materials purchases (paid with cash) 174,000 Factory payroll (paid with cash) 330,000 Factory overhead Indirect materials...

8. Use the following table to answer questions I, ii, iii and iv A B C...

8. Use the following table to answer questions I, ii, iii and iv A B C Initial cost $15,000 $9,000 $12,000 Annual benefit $8,000 $2,000 $1,800 Salvage value $5,000 $9,000 0 Life in years 2 years 3 Years Infinity MARR 10% i. The NPW of alt. A is __________________. A) $13,420 B) $17,380 C) $11,000 D) $6,00 ii. The NPW of alt. B is __________________. A) $13,420 B) $17,380 C) $11,000 D) $6,000 iii. The NPW of alt. C is...

Use the production possibilities tables to answer the following questions. Germany’s Production Possibilities A B C...

Use the production possibilities tables to answer the following questions. Germany’s Production Possibilities A B C D E F Autos (millions) 0 4 8 12 16 20 Chemicals (millions) 40 32 24 16 8 0 United States’ Production Possibilities A B C D E F Autos (millions) 0 3 6 9 12 15 Chemicals (millions) 60 48 36 24 12 0 If Germany and the United States engage in trade, the mutually beneficial terms of trade will be between _____...

Question