Samarium is a "rare-earth" element that is used to produce magnets with permanent magnetization, drugs for chemotherapy, control rods for nuclear reactors and aerospace equipment. it is costly to extract from the ground, creates a lot of pollution when mined and refined. firms that produce samarium must plan production in advance and production is relatively slow to adjust suppose world demand for samarium is given by the inverse demand curve p -20,000 - 20 q, where q is . in tons. · the marginal cost to extract a ton of samarium is mc = 2000

(a) if samarium were supplied by a monopolist, what price would the monopolist charge?

(b) what would be the monopolist's profit, consumer surplus and deadweight loss?

(c) if two identical firms supplied samarium, what would be the equilibrium? how much would each firm produce? what would be the market clearing price?

(d) what would be the firms' profits, the consumer surplus and the deadweight loss?

(e) briefly explain why your answer in (d) is the same or different than your answer in (b).

(f) what would happen if one of firms (say firm b) faced a capacity constraint and could produce, at most, q = 200, how much would firm a produce? what would be the equilibrium price?

(g) finally, explain what would happen if firms competed in prices (bertrand competition) rather than in quantities?

The penalties for a first-time dui charge include revocation of drivers license a. 180 days b. ben 180 des and one year c. bence 90 and 180 d. one year

Rahm's credit card issuer calculates interest based on the outstanding balance at the end of the last billing period. what is this method of calculating interest on a credit card called?

Suppose that fizzo and pop hop are the only two firms that sell orange soda. the following payoff matrix shows the profit (in millions of dollars) each company will earn depending on whether or not it advertises: pop hopadvertise doesn’t advertisefizzo advertise 10, 10 18, 2doesn’t advertise 2, 18 11, 11for example, the upper right cell shows that if fizzo advertises and pop hop doesn't advertise, fizzo will make a profit of $18 million, and pop hop will make a profit of $2 million. assume this is a simultaneous game and that fizzo and pop hop are both profit-maximizing firms.if fizzo decides to advertise, it will earn a profit if pop hop advertises and a profit if pop hop does not advertise.if fizzo decides not to advertise, it will earn a profit if pop hop advertises and a profit if pop hop does not advertise.if pop hop advertises, fizzo makes a higher profit if it chooses (not to advertise, to .if pop hop doesn't advertise, fizzo makes a higher profit if it chooses (not to advertise, to . suppose that both firms start off not advertising. if the firms act independently, what strategies will they end up choosing? fizzo will choose to advertise and pop hop will choose not to advertise.both firms will choose to advertise.fizzo will choose not to advertise and pop hop will choose to advertise.both firms will choose not to advertise.again, suppose that both firms start off not advertising. if the firms decide to collude, what strategies will they end up choosing? fizzo will choose not to advertise and pop hop will choose to advertise.both firms will choose not to advertise.fizzo will choose to advertise and pop hop will choose not to advertise.both firms will choose to advertise.