Suppose there are only two firms that sell smartphones: Flashfire and Pitch. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones.
| Pitch Pricing | |||
| High | Low | ||
| Flashfire Pricing | High | 11,11 | 2,20 |
| Low | 20,2 | 8,8 |
For example, the lower-left cell shows that if Flashfire prices low and Pitch prices high, Flashfire will earn a profit of $20 million, and Pitch will earn a profit of $2 million. Assume this is a simultaneous game and that Flashfire and Pitch are both profit-maximizing firms. If Flashfire prices high, Pitch will make more profit if it chooses a price, and if Flashfire prices low, Pitch will make more profit if it chooses a price. If Pitch prices high, Flashfire will make more profit if it chooses a price, and if Pitch prices low, Flashfire will make more profit if it chooses a price. Considering all of the information given, pricing low a dominant strategy for both Flashfire and Pistachio the firms do not collude, what strategies will they end up choosing? Both Flashfire and Pitch will choose a low price. Flashfone will choose a low price, and Pictech will choose a high price. Both Flashfone and Pictech will choose a high price. Flashfire will choose a high price, and Pitch will choose a low price. True or False: The game between Flashfire and Pitch is not an example of the prisoners’ dilemma. True False
QuickPay sells returnable containers to major food processors. The price received for the containers is £2 per unit. Of this amount £1.25 is profit contribution. QuickPay is considering an attempt to differentiate its product through quality improvement at a cost of 5p. per unit. Current profits are £40,000 on sales of 100,000 units.
a. Assuming that average variable costs are constant at all output levels, find QuickPay’s total cost function before the proposed change.
b. Calculate the total cost function if the quality improvement is implemented.
c. Calculate QuickPay’s break-even output before and after the change, assuming it cannot increase its price.
d. Calculate the increase in sales that would be necessary with the quality improvement to increase profits to £45,000.
Suppose the government decided that, since gasoline is a necessity, its price should legally be capped at R1,20 per gallon. Discuss the effects of this decision
1.1 What is the difference between a change in demand and quantity demanded? (4)
What is the relationship between quantity demanded and quantity supplied at equilibrium? (2) What is the relationship when there is a shortage?
The demand and supply functions for three interdependent commodities are
Use the NBS production table and production possibility frontier to answer the following questions: A. Name positions B, V and D. Also, as indicated in the table, supposing Nepal is operating at level T, what is the opportunity cost of producing 10,000 more tons of rice? (3 marks) B. Use the graph below to answer the questions that follow:
Use the NBS production table and production possibility frontier to answer the following questions: A. Name positions B, V and D. Also, as indicated in the table, supposing Nepal is operating at level T, what is the opportunity cost of producing 10,000 more tons of rice? (3 marks) B. Use the graph below to answer the questions that follow:
Using diagrams, show the effect on the demand curve, the supply curve, the
equilibrium price and the equilibrium quantity of each of the following events.
I. The salaries of journalists go up (5 marks)
ii. There is a big news event in your town, which is reported in the
newspapers (5 Marks)
2. Beef supplies are sharply reduced because of drought in the beef-raising
states, and consumers turn to pork as a substitute for beef. How would you
illustrate this change in the beef market in supply-and-demand terms?
(5 Marks)
3. In a given market, demand is described by the equation:
???? = ???????? - ??????
and supply is described by:
???? = ?????? + ??????
I. Determine the equilibrium price and quantity (10 Marks)
ii. Graphically illustrate the equilibrium price and quantity (5 Marks)
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4. Due to high company taxes prevailing un the auto mobile industries, the
average prices of motor vehicle specifically sedan has increased from a
N$170 000 to a N$190 000 and the quantity demand for sedan motor vehicle
decreases from 1000 units to 800 units. Use arc elasticity method to calculate
the price elasticity of demand for sedan motor vehicle. (5 Marks)
John’s income has just increased by $10,000 per year. If Ramen noodles is an inferior good in John’s opinion, what will happen to his demand for Ramen noodles? Show your answer using a graph.
Demand for good x: Qd=75-3P Supply of Good X: Qs=-20+6.5P
a) calculate equilibrium market price and quantity
b) Sketch the demand and supply curves. Indicate axis intercepts for the supply and demand curves and equilibrium price and quantity.
c) suppose the government imposed a $2 tax on good X. Suppliers are responsible for collecting and remitting the tax to the government. Adjust the supply equation to reflect the tax, and solve for equilibrium market price and quantity exchanged. Illustrate the effect of this tax in your diagram.
Suppose that Darnell, an economist from a research institute in Texas, and Eleanor, an economist from a non-profit organization on the West Coast, are arguing over saving incentives. The following dialogue shows an excerpt from their debate: Eleanor: I think it’s safe to say that, in general, the savings rate of households in today’s economy is much lower than it really needs to be to sustain an improvement in living standards. Darnell: I think a switch from the income tax to a consumption tax would bring growth in living standards. Eleanor: You really think households would change their saving behaviour enough in response to this to make a difference? Because I don’t. The disagreement between these economists is most likely due to?
2. Two firms play the following game. Firm 1 chooses a quantity q1, and this is observed by Firm 2, who in turn chooses his quantity q2. The inverse demand function is P (q1 + q2) = 5 – (q1 + q2) and both firms’ marginal cost is 1. Firms’ profit at the end of the game is their revenue minus their cost. (a) Find the quantities produced in a Subgame Perfect Nash Equilibrium and each firm’s profit. (b) How much would Firm 2 be willing to pay to change the order of play and become the first one to move?
Write an essay consisting of at least 500 words addressing all of the following topics (a through f):
a. Describe how the Reagan administration' s energy policy was different than the Carter administration' s energy policy.
b. Discuss the impact of gasoline prices on U.S. energy policy.
c. Present the impact of policy changes from 1970 to the present on the use of coal as an energy source.
d. Explain the impact of hydraulic fracturing on U.S. energy policy.
e. How did regulation of the nuclear power industry change from 1960 to 1990?
f. Describe a court case related to wind energy.
You are required to use at least your textbook as source material for your response
write about native story essay that is above 1200 latter to 1500 and I need two essays in the same subject that I mansion in beginning ((Narrative story))
and make sure that the essay has a lot of details and strong thesis