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General Equilibrium

Nash and multiple equilibria

Assume two high-tech companies, X and Y, are the only producers of a new product that is used my numerous computer manufacturers. The total demand for the new product is fixed and the price is set. Each firm's market share and profits are a function of the size of its advertising and promotional campaigns. If the two firms eng

Protective Tariffs in Competitive Market Equilibrium

In the United States, steel production has remained constant since the 1970s at about 100 million tons per year. Large integrated companies, like U.S. Steel, remain important in the industry, but roughly 50 percent of domestic production is now produced by newer, nimble, and highly efficient mini-mill companies. Foreign imports

Question is based on the LM and IS schedules

SUPPOSE THAT C = 60 + 0.8 Yd, I = 150-10r, G= 250, T = 200, Ms = 100, Md = 40 + 0.1Y - 10r 1.a. write the equations for the IS and LM schedules. b. Find the equilibrium values for income (Yo) and the interest rate (Ro) 2. suppose we change the model in problem 1 such that investment is assumed to be completely interest

General equilibrium and economic efficiency

An economy produces outputs X and Y using inputs L and K. Which of the following is NOT required for economic efficiency? a. MRTSLK = MRSXY for all producers and consumers. b. MRTXY = MRSXY for all producers and consumers. c. MRSXY is equal for all consumers. d. MRTSLK is equal for all producers. e. None of the above i


I need some help on the below detailed, not much required approx 350 words.... A firm finds there is a sudden increase in the demand for its product. In the short run, it must operate longer hours and pay higher overtime wage rates. In the long-run, however, the firm can install more machines and operate them for various peri

Airport Oligopoly - Price Increase - Demand shifts

Compiling research to support MBA Econ Research paper. Any help greatly appreciated. There are 3 major airports within South Florida. Given this is airport oligopoly structure. If 1 airports operating expenses are increased, thus resulting in costs being passed on to the consumer - 1. What impact will it have on the consum

Supply and demand

How will each of the following changes in demand and/or supply affect equilibrium price and equilibrium quantity in a competitive market; that is do price and quantity rise, fall, remain unchanged, or are the answers indeterminate, depending on the magnitudes of the shifts in supply and demand? You should rely on a supply and de

Market Structure: Perfect Competition

Draw graphs showing a perfectly competitive firm and industry in long-run equilibrium. a). How do you know that the industry is in long-run equilibrium? b). Suppose that there is an increase in demand for this product. Show and explain the short-run adjustment process for both the firm and the industry. c). Show and expl

Equilibrium Output in a Duopolist Market

Assume that 2 companies(C and D) are duopolists that produce identical products. Demand for the products is given by the following linear demand function: P=600-Qc-Qd Where Qc and Qd are the quantities sold by the respective firms and P is the selling price. Total cost functions for the two companies are TCc=25,000 + 10

Profit max, average cost, long-run equilibrium...

Please help with the following problem. Provide step by step calculations for each problem. 1. The Alpha Company is a member of the lamp industry, which is perfectly competitive. The price of a lamp is $50. The firm's total cost function is: TC = 1,000 + 20Q +5Q² Where TC is the total cost (in dolla

Findind Equilibrium for Strategic Game

The manager of a corporate division faces the possibility of an audit every year. She prefers to spend time preparing if she will be audited; otherwise, she would prefer to invest her time elsewhere. The auditor, who gets recognized for uncovering problems, prefers to audit unprepared clients. If the players match their act

Economics and Perfect Competition

You are a manager of a small US firm that sells nails in a competitive market (the nails are a standardized commodity; stores view your nails as identical to those available from hundreds of other firms). You are concerned about two events you recently about through trade publications: (1) The overall market supply of nails wi

In the following problem you need to determine whether a threat by an incumbent firm is credible and if it will deter a would be entrant, establish a way to make the threat be made credible, and demonstrate the process of backward induction to find an equilibrium.

Maytag wants to prevent Whirlpool from entering the market for high priced, front load washing machines. Front load washing machines clean clothes better and use less water than conventional top load machines. Even though front load machines are more costly to manufacture than top loaders, Maytag is nonetheless earning economi

Profit maximization

Given the following Demand & Supply functions: Qd = 25 – P Qs = 10 + 2P a – What is the equilibrium values of P and Q? Now suppose the demand function changes to: Qd = 10,000 – 2P If Total Cost function is: TC = 5000 + 50Q b - Find the Profit – maximizing Quantity and Price. c – Find the firm’s profit

Graphing Pizza Demand

Consider the market for pizza. Suppose that the market demand for pizza is given by the equation Qd = 300 - 20Pd and the market supply for pizza is given by the equation Qs = 20Ps - 100, Qd = quantity demanded, Qs = quantity supplied, Pd = price consumers pay (per pizza). a. Graph the supply and demand schedules for pizza usi

Akerlof model

Player 1 first observes the quality (q) of the indivisible good he owns before proposing a price (p) at which he will sell the good to Player 2, who responds to the offer by either accepting or rejecting. Trade takes place at a price of p if Player 2 accepts; otherwise no trade takes place. Player 1's payoff equals the reven

Managerial Economics

Currently 10 identical bakeries are producing bread in a competitive market. The cost function for a typical bakery is: Ci = 6qi + 0.01qi2 + 100. The demand for bread is: q = 1800 - 100p (a) What is the short run market supply curve? (b) What will be the equilibri

Managerial Economics

Fifteen competitive gadget makers each have the following cost structure: Ci = 0.1qi2 + 2qi + 160 i = 1,2,3.....15 (a) Determine the average fixed, average variable, average total and marginal cost functions. (b) What is the short-run supply curve for each firm? (c) What is the market supp

Managerial Economics

Q1. Ten competitive sawmills currently supply lumber to a market whose demand q, depends on lumber price, p, as follows: q = 3550 - 350p. The cost function of each mill is identical: Ci = 5qi + 0.05qi2 + 80 i = 1........10 (a) Determine

Fixed costs, Equilbrium price and quantity

1 - Florence is considering going into business for herself and has developed the following estimates of monthly costs and revenues to aid her in her decision-making process. She has decided to house the business in a building that she already owns, although she could rent the building to someone else for $1,000 per month. Estim

Determining equilibrium price and quantity for pears

The supply and demand curves for pears are Qs = 10000P QD = 25000-15000P Where Qs is the quantity (tons) supplied, Qd is the quantity (tons) demanded, and P is the price per pear (in hundreds of dollars per ton). a.Plot the supply and demand curve b.What is the equilibrium price? c.What is the equilibrium quantity?

Profit Maximizing Use the demand function: P = 30 - 2Q And the marginal cost function: MC = 20 to determine P and Q for profit maximization. Then, suppose a government subsidy of $6 per unit is imposed. What does the firm do with respect to price and quantity?

For Firm Y: Use the demand function: P = 30 - 2Q And the marginal cost function: MC = 20 to determine P and Q for profit maximization. Then, suppose a government subsidy of $6 per unit is imposed. What does the firm do with respect to price and quantity?