Two local ready-mix cement manufacturers, Here and There, have combined demand given by Q = 105...

Two local ready-mix cement manufacturers, Here and There, have combined demand given by Q = 105 − P. Their total costs are given by TC _Here = 5 Q _Here + 0.5 Q ²_Here and TC _There = 5 Q _There + 0.5 Q ²_Here. If they successfully collude, their maximum joint profits will be:

$2,500

$2,000

$1,000

$500

$1,600

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Two firms Apple and Samsung in the smart phone market have combined demand given by Q = 200...

Two firms Apple and Samsung in the smart phone market have combined demand given by Q = 200 – P . Their total costs are given by TC Apple = 5 Q Apple + Q 2 Apple and TC Samsung = 5 Q Samsung + Q 2 Samsung . If they successfully collude, their total output will be:

Kate's Great Crete (KGC) is a local monopolist of ready-mix concrete. Its annual demand function is...

Kate's Great Crete (KGC) is a local monopolist of ready-mix concrete. Its annual demand function is Qd=20,000-400P, where P is the price, in dollars, of a cubic yard of concrete and Q is the number of cubic yards sold per year. It's annual variable costs are VC=30Q+.0025Q2 and has avoidable fixed costs of $50,000. What is KGC's profit at the profit maximizing sales price? a. $-24,000 b. $90,000 c. -$30,000 d. $120,000 What is the profit maximizing sales...

Kalamazoo Competition-Free Concrete (KCC) is a local monopolist of ready-mix concrete. Its annual demand function is...

Kalamazoo Competition-Free Concrete (KCC) is a local monopolist of ready-mix concrete. Its annual demand function is Qd = 22,000 - 400P, where P is the price, in dollars, of a cubic yard of concrete and Q is the number of cubic yards sold per year. Its marginal cost is $20 per cubic yard, and it faces an avoidable fixed cost of $100,000 per year. Instructions: Round your quantity to the nearest whole number and all other answers to 2 decimal...

Kalamazoo Competition-Free Concrete (KCC) is a local monopolist of ready-mix concrete. Its annual demand function is...

Kalamazoo Competition-Free Concrete (KCC) is a local monopolist of ready-mix concrete. Its annual demand function is Qd=40,000−400P,Q d=40,000−400P, where P is the price, in dollars, of a cubic yard of concrete and Q is the number of cubic yards sold per year. Suppose that Kalamazoo's marginal cost is $20 per cubic yard and its avoidable fixed cost is $100,000. Suppose the government wants to regulate Kalamazoo Competition-Free Concrete. Instructions: Round your answers to 2 decimal places. a. What price...

Kalamazoo Competition-Free Concrete (KCC) is a local monopolist of ready-mix concrete.

Kalamazoo Competition-Free Concrete (KCC) is a local monopolist of ready-mix concrete. Its annual demand function is Qd = 10000 ? 100P, where P is the price, in dollars, of a cubic yard of concrete and Q is the number of cubic yards of concrete per year. (a) What is KCC’s marginal revenue when it sells 4000 cubic yards? (b) What is KCC’s marginal revenue curve? (c) What is KCC’s price when it sells 4000 cubic yards? (d) Suppose its marginal...

A May 2005 federal indictment included the following charges against certain Indianapolis ready-mix cement dealers: For...

A May 2005 federal indictment included the following charges against certain Indianapolis ready-mix cement dealers: For forming and carrying out the charged combination and conspiracy, Defendant and co-conspirators did those things that they combined and conspired to do, including, among other things: a. engaging in discussions regarding the prices at which each would sell ready mixed concrete; b. agreeing during those discussions to specific price increases for ready mixed concrete and to the timing of those price increases; c. issuing...

Given a concrete mix as follows: Cement 1 bag 3.15 Water &nb

Given a concrete mix as follows: Cement 1 bag 3.15 Water 60 lbs. 1.0 Sand 230 lbs. 2.65 (5% excess moisture) Gravel 380 lbs. 2.66 (2% excess moisture) Determine the quantity of each item that you would use for a 27 cubic foot mixer (you must only use whole bags of cement) weights for sand and gravel, bags for cement and gallons for water (ONE (1) CUBIC FOOT OF WATER = 7.48 GALLONS).

3. A yoga classroom faces two demand curves. The demand by local residents is Q=100-0.5P, and...

3. A yoga classroom faces two demand curves. The demand by local residents is Q=100-0.5P, and the demand by nonlocal residents is Q=200-0.5P. The marginal cost of serving either local or nonlocal residents is constant at $100. If the yoga classroom practices third-degree price discrimination, it will charge local and nonlocal residents a price of _____ and _____, respectively. a. $150; $250 b. $100; $200 c. $250; $350 d. $200; $300. How many people will they serve if they charge...

The production function of a firm is given as Q = 50√KL. Here Q is the...

The production function of a firm is given as Q = 50√KL. Here Q is the output produced, K is the capital input and L is the labor input. Take the partial derivative of the long-term cost function according to the wage, interpret the function you find. Do the same for the rent cost of the capital (take derivative according to r). Interpret the function you find.

The market demand curve is given by p = 100 - Q Two firms, A and...

The market demand curve is given by p = 100 - Q Two firms, A and B, are competing in the Cournot fashion. Both firms have the constant marginal cost of 70. Suppose firm A receives a new innovation which reduces its marginal cost to c. Find the cutoff value of c which makes this innovation "drastic".

Subjects

		$2,500
		$2,000
		$1,000
		$500
		$1,600