Question 2: Firm Competitions

Two firms, Firm 1 and Firm 2, produce the same goods and are competing in the same market. Firm 1 has a cost function of c1 = 20q1 and Firm 2 has a cost function of

c2 = 10q2.

The market price is determined by the inverse demand function p=100−q1 −q2

(a) Suppose Firm 1 and Firm 2 compete in a quantity competition. And suppose both firms decidesimultaneously. What are the Cournot-Nash equilibrium quantities of Firm 1 and Firm 2? Show your work.

(b) Suppose Firm 1 and Firm 2 compete in a quantity competition. And suppose Firm 1 moves first. Firm 2 observes Firm 1’s choice and moves second. What are the Stackelberg-Nash equilibrium quantities of Firm 1 and Firm 2? Show your work.

(c) Are the answers in (a) and (b) the same? Why or why not? Briefly explain in your own words.

(d) Now assume that the firms engage in a price competition and that the firms decide on their prices simultaneously. What are the Bertrand-Nash equilibrium prices? You do not need to show any calculation, but you need to explain your logic. Note: You can assume a price increment of $0.01 if needed.

? = ??^(1/3) L^(2/3)

Assume that total factor productivity, A, equals 2 in all parts of this question.

(a) Compute the level of output produced when K=10 and L=20.

(b) Does this production function exhibit essentiality? Prove this.

(c) Does this production function exhibit constant returns to scale? Explain why it does or does not and prove that your answer is correct by computing the effect of simultaneously tripling the quantities of K and L from their levels in (a).  

(d) Does this production function exhibit positive but diminishing productivity of each factor of production? Explain what we mean by this property, and prove that your answer is correct by computing the effect for output of doubling the quantity of K repeatedly (do this at least twice, relative to the level of K in (a)) while holding L constant, and the effect for output of doubling the quantity of L repeatedly while holding K constant (do this at least twice, relative to the level of L in (a)).

(e) Re-write the production function as a relation between output per worker and capital per worker. Compute the effects for output per worker of repeatedly doubling the amount of capital per worker. Draw a diagram illustrating the relationship between capital per worker and output per worker.

(f) Does this production function satisfy the Inada conditions? Explain your answer.  

Calculate the [H3O+] of each aqueous solution with the following [OH-]. 1) NaOH, 1.6x10^2 M. 2) milk of magnesia, 1.0x10^-5 M. 3) aspirin, 2.2x10^-11 M. 4) seawater, 2.5x10^-6 M.

Complete the following two parts. Your responses to both Part 1 and 2 should total 2 to 3 double-spaced pages in Microsoft Word, using 12-point font. Follow APA style for citations and references. Part 1 Consider the following scenario: Central Manufacturing Company needs 20,000 units of a certain part to use in its production cycle. The following information is available: Cost to Central to make the part: Direct materials â $4.00. Direct labor â $16.00. Variable factory overhead â $15.00. Fixed factory overhead applied â $8.00. Total â $43.00. Cost to buy the part from Northern Company: $39.00. If Central buys the part from Northern instead of making it, Central could not use the released facilities in another manufacturing activity. Eighty percent of the fixed factory overhead applied will continue regardless of what decision Central makes. Assess this situation, and write a response in which you address the following: In deciding whether to make or buy the part, what are the total relevant costs per unit to make the part? Direct materials. Direct labor. Variable overhead. Fixed overhead. Total. What decision should Central make? Why? Part 2 Evaluate variable costing by addressing each of the following: What are the advantages and disadvantage of using variable costing? What is absorption costing? How it is possible, under absorption costing, to increase net income by producing more goods? Which costing method is allowed for external financial reporting? Why only this method? Explain. How is a contribution margin determined? Why is it important to management?

ACC161 Unit 2 Review Assignment

1. Define the term liabilities.

2. What are the three crucial factors/characteristics of liabilities?

3. What are known liabilities? Give four examples of known liabilities.

4. What is capital stock?

5. Which financial statement will you find the stocks listed for a corporation?

6. What is the difference between common stock and preferred stock?

7. What is the difference between "authorized stock" and "issued and outstanding stock"?

8. What is the difference between par value stock and nonpar value stock?

9. What is meant when stock is issued at par?

10. What is meant when stock is issued for a premium?

11. What is meant when stock is issued at a discount?

12. What is the difference between a stock dividend and a stock split?

13. What is the difference between cumulative preferred stocks and noncumulative preferred stocks?

14. What is a cash dividend?

15. When a company declares a dividend, what accounts are affected when recording cash dividends? What accounts are affected when a cash dividend is paid? How would record each of these types of activities in a journal entry? Specifically, which account is debited and which account is credited?

Please answer all of the questions, if you can not answer all of the questions do not reply.

in a 1-2 page paper present 2-3 personal developmental needs and an action plan to improve these areas. For example, to be more involved with family than on the phone.

Week 12

1. Explain 2 reasons for the formation of corporate subsidiaries.

2. Identify four reasons for the formation of foreign subsidiaries.

3. Why is Amazon considering foreign subsidiaries in Europe as a management strategy?  

4. Explain two reasons why Vodafone and Verizon talked about an acquisition. Which company was acquired and what was the cost? Was this strategy of acquisition positive or negative?

5. Why did Google acquire Android? Explain why it was a good acquisition for Google.

FIND THE CENTROID:

a. of the region enclosed between the curves y=x^1/2 , y=1, y=2 and the y-axis.

b. of the 1st quadrant area bounded by the curve y=4-x²

c. of the region bounded by the curve y=x³ and x=y²