game theory

Solve and explain 3. You are a potential entrant into a market that previously has had entry blocked by the government. Your market research has estimated that the market demand curve for this industry is P = 22,500 - 75Q, where You estimate that if you enter the market, your own cost function will be Cy(Qy) ...continues

nash equilibrium

Solve and explain 5. You are considering entering a market serviced by a monopolist. You currently earn $0 economic profits, while the monopolist earns $5. If you enter the market and the monopolist engages in a price war, you will lose $5 and the monopolist will earn $1. If the monopolist doesn't engage in a price war, you ...continues

game theory

6. You are the bargaining coordinator for Sun Car Manufacturers. At present you are renegotiating the labor contract with the union representative. You are bargaining over an expected 20 percent increase in earnings over the next three-year contract period. You are trying to decide whether to offer one-third, one-half, or all ...continues

nash

4. You operate in a duopoly in which you and a rival must simultaneously decide what price to advertise in the weekly newspaper. If you each charge a low price, you each earn zero profits. If you each charge a high price, you each earn profits of $3. If you charge different prices, the one charging the higher price loses $5 a ...continues

Finding Total Ecnomic Profit

Here is the Scenerio- Labor is only variable input. Output is 4000 unit Marginal Product of labor is 10 Average Product of labor is 50 Price of labor is $150 Marginal product of capital is 40 Average product of capital is 60 Price of capital is $240 Total Fixed Cost is $16000 Output MC AVC AFC ATC ...continues

Perfect Competitor, Short run, long run

Output= 2000 unit Total Fixed Cost= $4000 Price of Labor= $80 price of Capital= $320 Marginal Product of Labor= 20 Marginal Product of Capital= 80 Price of output= $8 Long Run Marginal Cost= $8 Average Product of labor= 40 What Advice should be given for Short run and Long run and why? If output rises $10 do ...continues

Finding Short Run, Long Run movement

Suppose Labor is a Variable Input. Capital and Land are the inputs that requires the longest time period before they can be adjusted. Explain the movement of the resources in both SHORT RUN and LONG RUN Labor Capital Land

Findind Total Economic Profit

Here is the Scenerio- Labor is only variable input. Output is 4000 unit Marginal Product of labor is 10 Average Product of labor is 50 Price of labor is $150 Marginal product of capital is 40 Average product of capital is 60 Price of capital is $240 Total Fixed Cost is $16000. Output is 4000. Have to find out MC, AVC, AFC, ATC ...continues

Question

What is a product or service which features inelastic demand, and a product or service which features elastic demand?

Is price is a tool for changing surplus situations?

Is price is a tool for changing surplus situations?