Equilibrium Prices & Quotas

If my firm operates in a competitive market and competes with many other domestic and foreign firms. The domestic market demand for the product you produce is Qd = 500 - 1.5P. The domestic market supply curve is Qsd = 50 + 0.5P, and the market supply curve for the foreign firms in the market is Qsf = 250. - Determine the equilibrium price and equilibrium quantity under free trade. - Determine the equilibrium price and equilibrium quantity when foreign suppliers are limited to a 100 unit quota imposed by the U.S. government to protect domestic suppliers. - Are domestic producers better or worse off after the quota? Why - Are domestic consumers better or worse off after the ... click for more

Two production plants with cost functions

A monopoly has two production plants with cost functions C1 = 50 + 0.1 Q12 and C2 = 30 + 0.05 Q22. The demand it faces is Q=500 - 10P. What is the profit maximizing level of output? a. Q1 = 62.5; Q2 = 125 b. Q1 = 125; Q2 = 62.5 c. Q1 = Q2 = 125 d. Q1 = Q2 = 62.5

Question

Income = $500 PX = $20 PY = $5 Market rate of substitution between Goods X and Y would be ? ( 100, -4, -20, 25)

Question

Cost of corn is low and patrons in the US spend 3 billion yearly on its consumption. The cost has doubled, patron spending in reality has gone up to 4 billion yearly. This is an a sign of? (demand for corn is elastic, demand curve for corn is upward sloping, corn is a giffen good, corn prices violate the law of demand, none of the above)

Question

Gas business takes over one of its previous suppliers in a merger this illustrates ? (vertical or horizontal integration)