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Posted: May 11th, 2022

MSA ETS1112 – Sunrise Juice Company sells its output

Reply all Questions
1. Dawn Juice Firm sells its output in a wonderfully aggressive
market. The agency’s whole value operate is given within the following
schedule:

Output

Whole Value

(Items)

($)

zero

50

10

120

20

170

30

210

40

260

50

330

60

430

Whole prices embrace a “regular” return on the time (labor
providers) and capital that the proprietor has invested within the agency. The prevailing
market worth is $7 per unit.
a. Put together marginal value schedule. (three Marks)
b. What’s the firm’s revenue maximizing output stage? (2 Marks)
Trace:Please check with Questions 2 and four Tutorial 6 which is alsoP10.2 p.406 of your prescribed textbook.%20Check%202.%20Information%20Solutions.docx#_ftn1″ title=””>[1];
And Homework 1 must also show you how to.

2.
A agency producing hockey sticks has a
manufacturing operate given by:.png”>. In
the brief run, the firm’s quantity of capital gear is fastened at okay= 100. The
rental fee for Okay is v= $1, and the wage fee for L is w = $four.
a. Calculate the firm’s short-run whole value curve. (1 Mark)
b. Calculate the short-run common value curve. (1 Mark)
Trace:
This query is strictly the identical query together with your homework four, the one
distinction I gave you the particular worth of w=four which you didn’t have for the
homework. One would have anticipated that utility of the idea ought to be
straightforward and straight ahead. I posted the reply to this homework effectively earlier than the
check; which ought to have made your research and revision a lot simpler.

three. In a relentless value trade having zero marginal prices, the inverse
demand operate is given by P=12-Q. Estimate the equilibrium worth of the value
and output for:
a. Monopoly. (1 Mark)
b. Cournot Duopoly. (2 Marks)
c. Excellent Competitors. (1 Mark)
Trace:
For Monopoly and Excellent Competitors, please
check with Tutorial 7 Query 2 which can be P12.5 p.495 of your
prescribed textbook; this query compares monopoly versus aggressive market
equilibrium; additionally check with questions three and four of the identical tutorial.
For Cournot Duopoly we did a variety of questions;
in Class we reworked instance on web page 513 of your textbook (and I requested you to
do the identical at your individual time); then throughout Tutorial eight we did questions 1
and a couple of which can be P13.6 p.542 of your prescribed textbook

four. Acknowledge every of the next statements as being true or false
and clarify why.
a.
A set of methods
constitutes Nash equilibrium if no participant can enhance their place given the
methods chosen by different gamers.(1 Mark)
b.
A safe technique is
very conservative and may solely be thought-about if the rival’s optimum technique
is similar.(1 Mark)
c.
A dominant technique
can be a safe technique, however each safe technique just isn’t essentially a
dominant technique.(1 Mark)
d.
In a one-shot sport,
the Nash equilibrium can be the very best consequence that may be achieved below
collusion.(1 Mark)
Trace
These questions got here straight out of your textbook
and we outlined a few of these ideas if not all of them throughout tutorial 10; I
did emphasise the necessity to have a transparent understanding of all key ideas of
Sport Principle. On the finish of Sport Principle Subject, Chapter 14 of your prescribed
textbook there’s a one web page abstract which defines all these key ideas.

END OF TEST PAPER

[1]Mark Hirschey and
Bentzen M. (2014), Managerial
Economics, 13th version

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