Question

Let Q be the number of printer-computer combinations sold in the market and let MC of...

Let Q be the number of printer-computer combinations sold in the market and let MC of both these products equal $0. Let the demand for both the products be given as Q = 12 – (Pp + Pc), where Pp and Pc are the prices of printers and computers. What are the profits of each firm when they decide to cooperate, and what happens if they decide to go alone?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Two duopolists have the following market demand and cost structures. P = 2000 – 2Q; MR=...
Two duopolists have the following market demand and cost structures. P = 2000 – 2Q; MR= 2000-4Q MC is constant at 400, and FC=0 If the firms cooperate to set quantity, what will cartel quantities, prices, and profits be? Make sure to identify each firm’s q, P and profits as well [6] One firm cheats to lower its price by $100. What happens to the quantity and profits of this firm? If the other firm does not reduce its price...
No scan of handwritten answers 1. A monopolist faces a market demand curve given by Q...
No scan of handwritten answers 1. A monopolist faces a market demand curve given by Q = 53- P. Its cost function is given by C = 5Q + 50, i.e. its MC =$5. (a) Calculate the profit-maximizing price and quantity for this monopolist. Also calculate its optimal profit. (b) Suppose a second firm enters the market. Let q1 be the output of the first firm and q2 be the output of the second. There is no change in market...
1. The market for laser printer has a demand curve given by P=1400-2Q, where P is...
1. The market for laser printer has a demand curve given by P=1400-2Q, where P is industry price and Q is industry quantity. Currently HP and EPSON are the only two firms in this market. Each firm has a constant marginal cost of production equal to 200 and there are no fixed costs. i). Assume that the two firms collude where each produces half of the total output. What is the equilibrium market price, each firm’s equilibrium quantity, and the...
4.Which statement isincorrect? a.A pure monopolist’s demand curve is the market demand curve. b.A monopoly produces...
4.Which statement isincorrect? a.A pure monopolist’s demand curve is the market demand curve. b.A monopoly produces a product for which there are no close substitutes. c.Marginal revenue is less than price for a monopolist that cannot price discriminate. d.A monopolist’s market position ensures positive economic profits. 5.For a firm with monopoly power that cannot engage in price discrimination: a.the marginal revenue curve lies below the demand curve because any reduction in price applies only to the last unit sold. b.the...
1. Assume that Bradley Corporation Inc. produces advanced analytic software for computer simulations called Market-It. Based...
1. Assume that Bradley Corporation Inc. produces advanced analytic software for computer simulations called Market-It. Based on an analysis of product sales over a two-year period, Bradley’s marketing department estimates the demand for Market-It to be QM = 1,200 − 8PM + 4PS, where QM denotes units sold of Market-It software, PM denotes Market-It’s price, and PS denotes the price of a (competing) best-selling statistical software package (with both prices in dollars). a) Currently, PM = $200 and PS =...
Assume that consumers view tax preparation services as undifferentiated among producers, and that there are hundreds...
Assume that consumers view tax preparation services as undifferentiated among producers, and that there are hundreds of companies offering tax preparation in a given market. The current market equilibrium price is $120. Jojo’s Tax Service has a daily, short-run total cost given by TC = 100 + 4Q2. Answer the following questions: How many tax returns should Jojo prepare each day if her goal is to maximize profits? How much will she earn in profit each day? A perfectly competitive...
Assume that consumers view tax preparation services as undifferentiated among producers, and that there are hundreds...
Assume that consumers view tax preparation services as undifferentiated among producers, and that there are hundreds of companies offering tax preparation in a given market. The current market equilibrium price is $120. Jojo’s Tax Service has a daily, short-run total cost given by TC = 100 + 4Q2. Answer the following questions: How many tax returns should Jojo prepare each day if her goal is to maximize profits? How much will she earn in profit each day? A perfectly competitive...
1.A firm is a pure monopoly when: a.it is the only seller of a unique product...
1.A firm is a pure monopoly when: a.it is the only seller of a unique product and barriers to entry prevent other sellers from entering the market in the long run. b.it is the only seller of a product that has very few close substitutes and entry into the market in the long run is unrestricted. c.there are only a few other very large firms selling similar products. d.it can sell all it can produce at any price it chooses....
If a competitive firm can sell a bushel of soybeans for $25 per bushel and it...
If a competitive firm can sell a bushel of soybeans for $25 per bushel and it has an average variable cost of $20 per bushel, and the marginal cost is $22 per bushel, the firm should: expand output. reduce output. increase price. cut output to zero. In the long run, the competitive firm always produces at the: minimum of the average variable cost curve. minimum of the average total cost curve. maximum possible point of production. minimum of the marginal...
Total utility can be objectively measured in numbers that indicate usefulness or benefit to the consumer....
Total utility can be objectively measured in numbers that indicate usefulness or benefit to the consumer. ____ 2. Consumers should purchase quantities of a good to the point where MU > P. ____ 3. Voluntary exchange requires that there must be mutual gain. ____ 4. Points along a budget line represent the maximum combinations of two commodities that a consumer can afford. ____ 5. The budget line represents a consumer's preferences for a commodity. ____ 6. A change in consumer...