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Show transcribed image text The above figure represents Tony's Pizza Parlor a firm in monopolislic competition What quantity will be produced What price will be charged What is Tony's total cost

Show transcribed image text The above figure represents Tony's Pizza Parlor, a firm in monopolislic competition. What quantity will be produced? What price will be charged? What is Tony's total cost? What is Tony's total revenue? What is Tony's economic profit or loss? Is this a long-run equilibrium? Why or why not? Show the diagrams illustrating a short-run equilibrium and a long-run equilibrium for both Tony's business and the entire market Use a graph to demonstrate why a profit-maximizing monopolistcally firm must operate at excess capacity. Explain why a perfectly competitive firm is not subject to the same constraint. The tabie above has the market demand schedule in an industry that has two firms in it. The marginal cost of this product is zero because these two firms have exclusive ownership of the resource and it does not cost any additional amount to produce additional units, if the firms cooperate with each other so that they operate as a monopoly, what price will they charge and what (total) output will they produce? If the firms cannot cooperate but instead behave as perfect competitors, what will be the price and the (total) output they produce? Nimbus Inc., and Cleansweep Inc.. arc the only producers of flying brooms. Each firm ra egics. Spend 30,000 galleons a year on research and development (R&D) or spend nothing on R&D. If neither firm spends on R&D. Nimbus' economic profit is 80, 000 galleons and Cleansweep's economic profit is 40.000 galleons. If each firm conducts R&D. market shares are maintained, but each firm's profit is lower by the amount spent on R&D. If Nimbus conducts R&D) and Cleansweep does not. Nimbus makes an economic profit of 120,000 galleons, while Cleansweep incurs an economic loss of 20,000 galleons. If Cleansweep conducts R&D and Nimbus docs not, Cleansweep makes a profit of 60,000 galleons while Nimbus loses 10,000 galleons. Construct a payoff matrix for the game that Nimbus and Cleansweep must play. Find the Nash equilibrium. In the Nash equilibrium, what is each firm's equilibrium profit? What is the cooperative outcome? Would the firms make more economic profit if they collude to achieve the cooperative outcome?

Apr 30 2020 View more View Less

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