Consider a company that specializes in potting soil. Each bag of potting soil for seedlings requires 2 units of sand, 1 unit of loam, and 1 unit of peat moss. Each bag of potting soil for general potting requires 1 unit of sand, 2 units of loam, and 1 unit of peat moss. Each bag of potting soil for hardwood plants requires 2 units of sand, 2 units of loam, and 2 units of peat moss. Find the numbers of bags of the three types of potting soil that the company can produce with the given amounts of raw materials. 1100 units of sand 900 units of loam 800 units of peat moss soil for seedlings bags soil for general potting Incorrect: Your answer is incorrect. bags soil for hardwood plants

1. consider a two-firm industry. firm 1 (the incumbent) chooses a level of output qı. firm 2 (the potential entrant) observes qı and then chooses its level of output q2. the demand for the product is p 100 q, where q is the total output sold by the two firms which equals qi +q2. assume that the marginal cost of each firm is zero. a) find the subgame perfect equilibrium levels of qi and q2 keeping in mind that firm 1 chooses qi first and firm 2 observes qi and chooses its q2. find the profits of the two firms-n1 and t2- in the subgame perfect equilibrium. how do these numbers differ from the cournot equilibrium? b) for what level of qi would firm 2 be deterred from entering? would a rational firm 1 have an incentive to choose this level of qi? which entry condition does this market have: blockaded, deterred, or accommodated? now suppose that firm 2 has to incur a fixed cost of entry, f> 0. c) for what values of f will entry be blockaded? d) find out the entry deterring level of q, denoted by q1', a expression for firm l's profit, when entry is deterred, as a function of f. for what values of f would firm 1 use an entry deterring strategy?