Business, 27.11.2019 02:31 mariah9695

Amy and soma discover a stream that flows wine. amy and soma decide to bottle the wine and sell it. the marginal cost and the fixed cost to bottle wine are 54 and zero respectively. the market demand for bottled wine is given by: p = 904-50, where q is the total quantity of bottled wine produced and pis the market price of bottled wine. answer the following questions. a. what are the economically efficient (in other words, perfectly competitive) price and quantity of bottled wine? show your work. how much will be the profit? (1+1+2+2 - 6 points) b. if amy and soma were to collude with one another and produce the pront-maximizing monopoly quantity of bottled wine and share the profit equally, how much bottled wine will each one of them produce? show your work. at what price? how much profit will each one of them earn? (2+2+242 - 8 points) c. suppose that amy and soma act as cournot duopolists. how much bottled wine will each one of them produce? show your work. at what price? how much proht will each one of them earn? (2+8+2+2 -14 points) d. suppose soma isa naive cournot duopolist so that amy can act as a stackelberg leader. what level of output will each one of them produce? show your work. what will be the price of wine? how much will be the profit for each one of them? (4+6+2+4 - 16 points)

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 22:30

Schuepfer inc. bases its selling and administrative expense budget on budgeted unit sales. the sales budget shows 1,800 units are planned to be sold in march. the variable selling and administrative expense is $4.30 per unit. the budgeted fixed selling and administrative expense is $35,620 per month, which includes depreciation of $2,700 per month. the remainder of the fixed selling and administrative expense represents current cash flows. the cash disbursements for selling and administrative expenses on the march selling and administrative expense budget should be:

Answers: 1

Answer

Business, 23.06.2019 01:30

Vortex company operates a retail store with two departments. information about those departments follows. department a department b sales $ 800,000 $ 450,000 cost of goods sold 497,000 291,000 direct expenses salaries 125,000 88,000 insurance 20,000 10,000 utilities 24,000 14,000 depreciation 21,000 12,000 maintenance 7,000 5,000 the company also incurred the following indirect costs. salaries $36,000 insurance 6,000 depreciation 15,000 office expenses 50,000 indirect costs are allocated as follows: salaries on the basis of sales; insurance and depreciation on the basis of square footage; and office expenses on the basis of number of employees. additional information about the departments follows. department square footage number of employees a 28,000 75 b 12,000 50 required: 1. determine the departmental contribution to overhead and the departmental net income for department a and department b.

Answers: 2

Answer

Business, 23.06.2019 09:30

Ronald sees that his employer's stock has grown from $20 a share to $60 a share this year, while most stocks have seen only 5% growth. his employer offers to let him convert a large portion of his salary into stock options. what is not a valid reason to turn down the stock offer? a)stocks with high returns have high volatility, and ronald's company may not grow further. b)ronald may be taxed more for capital gains than he would be for employment income. c)stock options are illiquid, and ronald may not be able to use them to pay for unexpected bills. d)ronald would be committing stock fraud if he exercises the options.

Answers: 1

Answer

Business, 23.06.2019 10:30

How many years do you have to go to school for business management

Answers: 2

Answer

You know the right answer?

Amy and soma discover a stream that flows wine. amy and soma decide to bottle the wine and sell it....

Questions