2 firms are engaged in Cournot competition; firm Z faces the cost curve CA (yZ) = 40yZ and firm W
faces the cost curve CW (yW) = 40yW. The inverse market demand curve is P(y) = 100 y, where y
represents the market level of output.

a) Define the Cournot game.

b) Explain why a firm has no incentive to deviate from the Cournot Nash equilibrium (holding their opponent’s strategy constant)

c) Find the Cournot Nash Equilibrium

d) Now suppose instead of playing their strategies at the same time, firm Z moves first and then firm W moves second (sequential game). Does firm Z earn higher profits in this game or the game in part c)?

Consider an individual who must drive to his place of work. Assume that there are 16 available hours in the day, that his wage rate is $20 per hour, and that he has nonlabour income of $100 per day. The commute takes one hour each day and it costs $40 in expenses for the round trip. Using a work-eisure diagram, depict his labour supply choice, including his reservation wage. Analyze the impact of an increase in commuting costs on his participation and hours decision. Analyze the impact, first of an increase in commuting time from two to four hours per day, and, second, of an increase in driving expenses from $40 to $60 per round trip, keeing commuting time at two hours.

A research had two identical plates of Hela cells. The researcher performed a trypan blue viability test on the first plate. The second plate was transfected with a GFP expression plasmid. Six hours after the transfection the researcher observed the number of fluorescent cells and then performed a trypan blue viability test. The results are show below:

                                                        Plate 1              Plate 2

Trypan Blue Test         Blue                 50                    100

                                    Clear                200                  150

Fluorescence Test        Green              ---                    75       

                                    Clear                ---                    175

Both qualitatively and quantitatively, what can you conclude about the actual procedure of transfecting the cells?

Based upon the cells that are alive after the transfection procedure, what is the overall transfection efficiency of the procedure? (Show your calculations!)

A salesman has an 80% chance of making a sale on each call. If 3 calls are made, let X=total number of sales and Y=total profit from the sales were the profit Y is calculated as follows: Any Sales on the first two calls yield a profit of $100 each. By the time the third call is made, the original product has been replaced by a new product whose sale yields a profit of $200. Thus, for example, the sequence (sale, no sale, sale) would give Y=$300

a) list the sample space b) Tabulate and graph the bivariate distribution c) Calculate the marginal distribution of X and of Y d) Calculate E[x] and E[Y] e) Are X and Y independent?

1. (25) Firms Acme and Best operate in a market with demand given by: P (Q) = 100 − Q. Each firm has costs given by: C(Q) = 10Q. Each firm has three possible output levels: 25, 30, and 40. For parts (a) through (c), assume that the firms simultaneously choose their output level.

(a) (10) Construct the 3 by 3 payoff matrix to illustrate the returns (in this case, the profits) from choosing the various output combinations.

(b) (5) What is Acme’s strategy? Is this a dominant strategy?

(c) (5) What is the Nash equilibrium of this game?

(d) (5) Now assume that the firms sequentially choose their output levels with Acme choosing first. Describe the game using a game tree.

You have the following buffer recipe and decide to make up some concentrated solutions first so that you won't have to weigh out dry ingredients, wait for them to dissolve, and correct the pH every time you make it. How much dry ingredients do you use for each of the following 4 stock solutions? Show you work and include units in your calculations. The Buffer Recipe is: 150 mM NaCl (formula weight 58.44 g) 10 mM Tris pH 8.0 (formula weight 121 g) 2 mM EDTA (formula weight 292 g) 0.2% bovine serum albumin Stock 1 of 4: 3 M NaCl, 100 mL ________ ?

* Please use your own words.

* Please provide sources for your answers.

1. Provide an example of any two leading companies from the same industry which are competing directly for marketshare. Give a short profile (300-500 words) for each (provide references for your answers).

2. If you are the manager of one of these companies, what pricing policy do you adopt to be in the first position? Why? (100-200 words)

3. When the whole sector of the market is occupied by the little number of big corporations who share the leadership, what do we call this type of market structure? Explain in details the benefit of this market for the leading company and the disadvange of such situation on final consumers (300-500 words)

Ram? Roy's firm has developed the following? supply, demand,? cost, and inventory data.

Assume that the initial inventory has no holding cost in the first period and backorders are not permitted.

Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $ _____?

The company uses the FIFO method in its process costing system. Production data for the Mashing Department (first stage) for the month of January appears below:

Production data:

Units (gallons) in process, January 1 (materials 100% complete;

conversion 90% complete). . . . . . . . . . . . . . . . . . . . . . 20,000

Units started into production. . . . . . . . . . . . . . . . . . . . . . . . . . 390,000

Units in process, January 31 (materials 75% complete;

conversion 25% complete) . . . . . . . . . . . . . . . . . . . . . . 40,000

Cost data:

Work in process inventory, January 1:

Materials cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,000

Conversion cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   $13,000

Cost added during the month:

Materials cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $495,000

Conversion cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $253,000

REQUIRED:

Prepare a FIFO production report for the Mashing Department for Windy City Brewing Co. for the month ended January 31, 2018.

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.32 million. The fixed asset qualifies for 100 percent bonus depreciation in the first year. The project is estimated to generate $1.735 million in annual sales, with costs of $650,000. The project requires an initial investment in net working capital of $250,000, and the fixed asset will have a market value of $180,000 at the end of the project. The tax rate is 21 percent.

a. What is the project’s Year 0 net cash flow? Year 1? Year 2? Year 3?

b. If the required return is 12 percent, what is the project's NPV?