Problem 4 (entry deterrence Market demand is given by p= 12 - Q. There are two firms: the incumbent firm (I) and the entrant firm (E). Incumbent moves first by choosing quantity q, from the interval [0, 4]. The entrant observes qr and decides whether or not to enter and how much to produce if he enters (qE). There is no fixed cost of entry. If the entrant decides to stay out, his profit is zero and the incumbent enjoys a monopoly position. Suppose that both incumbent and entrant have identical marginal costs equal to c = 8 a) What is the subgame perfect equilibrium of this game? What are the quantities produced by the incumbent and entrant? What are their profits? b) What is the minimum quantity that must be produced by the incumbent to deter entry (to make entry unprofitable)? In this game, will the incumbent ever try to deter entry by increasing quantity?

Answers

Answer 1

The subgame perfect equilibrium in this game is for the incumbent to choose a quantity of q = 4, and the entrant to choose a quantity of qE = 0. The incumbent's profit is 16, and the entrant's profit is 0.

In this game, the incumbent moves first and chooses a quantity q from the interval [0, 4]. The entrant observes qr (the incumbent's chosen quantity) and decides whether to enter or stay out. Both firms have identical marginal costs of c = 8. In the subgame perfect equilibrium, the incumbent chooses q = 4, which is the maximum quantity he can produce. This is done to deter entry by the entrant since the market demand is given by p = 12 - Q. With q = 4, the incumbent achieves a monopoly position, and the entrant's profit becomes zero if he chooses to stay out. The entrant, observing that entry would be unprofitable, decides not to enter the market and produces qE = 0. Consequently, the incumbent's profit is equal to the monopolistic profit of (p - c) * q = (12 - 0 - 8) * 4 = 16, while the entrant earns zero profit. The minimum quantity that must be produced by the incumbent to deter entry is q = 4.

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Related Questions

Fractional reserve banking increases the money supply in an economy by:
A. preventing depositors from leaving a lot of money in banks.
B. requiring the government to print more money in certain
situations.
C. loaning money that would otherwise be held in a bank.
D. accepting currencies from many different countries to pay off
loans.

Answers

Answer:

C. loaning money that would otherwise be held in a bank.

Explanation:

Fractional reserve banking increases the money supply in an economy by "loaning money that would otherwise be held in a bank."

Fractional reserve banking is known as a system of banking whereby the banks hold a fraction of what customers deposit as reserves. Then the banks use the remaining to give loans and thereby creating and increasing the supply of money. Commercial banks practise this type of banking system. This tells of how commercial banks are affecting the money supply. The bank reserves are usually held as cash in the bank. It can also as balances in the bank's account at their central bank.

Answer:

C. loaning money

Explanation:

just did it on a-p-e-x

To satisfy demands for withdrawals, banks keep:
A. discount rates.
B. monetary policies.
C. balance sheets.
D. fractional reserves.​

Answers

C. balance sheets

explanation:

In what circumstance would a property insurance claim be rejected?

Answers

• You don’t file your claim promptly
• The cause of property damage falls under an exclusion condition in your policy.
•You haven’t been paying your insurance premiums.
• The damage isn’t sufficiently documented
•The insurance adjuster finds anything suspicious or false in the claim.
•You didn’t take precautions to prevent further damage after the initial loss.

Write a question keep it simple

Answers

Answer:

Why do people break up if they love each other?

Explanation:

sorry it's not simple lol

Describe the information you will need to provide in order to complete a FAFSA. List at least three of the required documents you must include.

Answers

Answer:

Sample response: To complete a FAFSA, I must first include information to verify my identity. This includes my Social Security number or a driver's license. I must include information about my income or my family's income (if they are still responsible for my care). Finally, I must submit financial information, like my account statements.

Explanation:

2020 edg

After learning about social media ethics, what 5 things would you tell other high school students positive or negative about social media and how it will potentially affect their high school experience and their potential career?

Answers

1. A positive is meeting and learning from new people 2. social media Can be dangerous to mental health 3 Stay in touch with distant people 4. Learn subjects 5. What you say online can bite you on the butt

Based on the W-2 provided, Social Security tax withheld for Lily was ______ of wages and Medicare tax withheld was ______ of wages.

a. 1.3%, 5.5%
b. 6.2%, 1.45%
c. 10%, 10%
d. 28%, 39.8%

Thanks for any help I can get! I don't need an explanation as to how you got the answer. ​

Answers

Answer:

b. 6.2%, 1.45%

Explanation:

Social security and medicare are calculated as a percentage of the gross pay. For Lily, gross pay is $14,450.

For social security, 895.90 is deducted. As a percentage of her gross pay

895.90 will be.

=895.90/ 14,450 x 100

= 0.06193771 x 100

=6.2 %

For medicare, 209.5 has been deducted.  As a percentage of her gross pay, 209.5 is

=209.5/ 14,450 x 100

=0.01449827 x 100

=1.45%

The social security tax is the tax amount that is acquired from the earned income to fund the benefits of social security. It is the major part of the salary that carries the benefits for the person who earns it and contributes some part for the benefits of the government.

The correct answer is b. 6.2%, 1.45%

Social security and medicare are calculated as a percentage of the gross pay. For Lily, gross pay is $14,450.

For social security, 895.90 is deducted. As a percentage of her gross pay

895.90 will be.

[tex]=\frac{895.90}{14,450}\times 100= 0.06193771 \times 100=6.2 \%[/tex]

For medicare, 209.5 has been deducted.  As a percentage of her gross pay, 209.5 is

[tex]=\frac{209.5}{14,450} \times 100=0.01449827 \times 100=1.45\%[/tex]

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WILL MARK BRANLIEST!!!!!
Which portion would not be part of an investment portfolio? (Select the best answer.) commodities funds

a savings account

a savings 529 plan

equity investments in a company

Answers

Answer:

a savings 529 plan

Hope this helps plz mark me brainliest

Answer:

A savings account

Explanation:

Took the quiz

If 135 TV's are sold and cost $275 to produce and is priced at $250, what is the profit/loss?

Answers

Answer:

$25

Explanation:

The production cost is $275.

The selling price is $250

The loss/profit will be: Selling price minus cost price

=$250 - $275

=  -$25

A loss of $25.

If this is the cost for all the 135 TVs, then the loss is only $25.

N:B

If the costs are for one TV, then the loss will be $25 x 135=$3,375

if i post by business page will you guys follow it ?

Answers

Answer:

Yassss queeeennnn

Explanation:

jdnskakana

Explanation:

Yes i will definately follow it

what is the role of doctors in our society?​

Answers

Their role is to serve the society as others do basically contribution but their actual role is to help others through their medical knowledge.

which of the following is a workplace trend?
A - decreased outsourcing
B - decreased attention to diversity
C- increased use of manual labor
D - increased technology literacy

Answers

Answer:

increased use of manual labor

Explanation:

Advancement in technology has resulted in machines taking over manual jobs.  A few decades ago, manual work was done by human beings exclusively. Industries hired many laborers to assist in many aspects of the business. Today, machines and robots are deployed in different sectors of the economy.

The current trend is the workplace is the use of modern technology. Computers, machines, and robots are gradually replacing people, mostly unskilled and manual laborers.

Why do you think economists have different belief systems/theories on economics?

Answers

Economists have different belief Systems because Economists also disagree because their methods are not good enough to reveal the whole truth. Economic theory is an attempt to explain and interpret economic data, for example, to determine the causes and effects of economic events.

Answer:The principal disagreement among economists is a matter of economic philosophy. There are two major schools of economic thought: Keynesian economics and free-market, or laissez-faire, economics.

Keynesian economists, named after John Maynard Keynes, who first formulated these ideas into an all-encompassing economic theory in the 1930s, believe that a well-functioning and flourishing economy may be created with a combination of the private sector and government help.

By government help, Keynes meant an active monetary and fiscal policy, which works to control the money supply and adjust Federal Reserve interest rates in accordance with changing economic conditions.

By contrast, the free-market economists advocate a government "hands-off" policy, rejecting the theory that government intervention in the economy is beneficial. Free-market economists—and there are many distinguished advocates of this theory, including Nobel Memorial Prize winner Milton Friedman—prefer to let the marketplace sort out any economic problems. That would mean no government bailouts, no government subsidies of business, no government spending explicitly designed to stimulate the economy, and no other efforts by the government to help what the economists believe is the ability of a free economy to regulate itself.

Explanation:

What type of economy is an economic system in which private businesses can operate freely with minimal state control?Henry lives in a country where the government gives many incentives to produce military goods and few incentives to produce consumer goods. Henry knows a more efficient way to finish his task at work and feels like sharing it with his boss. However, he has no incentive to share it. Which type of economy does Henry most likely live in?

Answers

Answer:

Private business freedom : Capitalist or Market Economy. Henry is more likely in Socialist Economy.

Explanation:

Economy type in which private sector has full freedom, un-intervened by government or state control is Capitalist or Market Economy. Profit maximisation motive & high consumer choice, sovereignity such economy's main features.

Henry's country which gives incentives to reallocate production choice 'what to produce' (from consumer goods to military goods). He has more efficient idea for work implementation, but lacks incentive (probably due to lack of creative & innovative ideas reward). These features characterise a Socialist Economy, in which government or state has supreme power over central economic decisions. Social welfare is considered priority, government monopoly curbs innovation & creativity, there is less consumer choice, sovereignity.

Which of the following vehicles would have a lower insurance premium?
O A brand new SUV
O A used town car

Answers

Answer:

A used town ca

Explanation:

Because its used and that insures that it works so it makes the insurance go down

The correct answer is option B.

A used town car would have a lower insurance premium.

Insurance premium

An insurance premium is the amount of money an individual or business pays for an insurance policy. Insurance premiums are paid for policies that cover healthcare, auto, home, and life insurance.

What is an example of a premium in insurance?

A premium is the price of the insurance you've chosen, charged by your insurance company. A deductible is an amount you have to pay before your insurance company initiates coverage. For example, if your car insurance premium is $800 per year, you must pay your insurer $800 per year to have the insurance.

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It is the idea being transmitted by the sender to the receiver. It includes three aspects — content , structure and style

Answers

Answer:

decodes and feedback.

Explanation:

It is a message since it is written or recorded words or information sharing or ideas conveyed by the sender to the receiver.  It includes information and communication, how important and useful information is, and can be read in order to understand it.  The structure of a message is tone.

The Style includes how the sender composes and writes a message.

Message is the idea being transmitted.

A Message is a form of communication sent to a recipient who is not present physically and its can be in verbal, written or recorded form.

Message is one of the essential elements of communication process. The other process includes Sender, Encoding, Interference, Communication channel, Receiver, Decoding and Feedback

Roughly, there are 3 purposes for passing message

To inform people of certain subject.To persuade others to do one biddingTo builds one's goodwill.

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Max works at Pizza Palace 20 hours each week at a rate of $10 per hour. He is paid every two week. Calculate his gross and net pay. (Social Security 6.2%, Medicare 1.45%, and Federal and State Tax 10%)

Answers

Answer:

$329.4

Explanation:

Max earns $10 per hour. If he works for 20 hours each week, his weekly pay will be $10  times 20 hours

=$10 x 20 hours

=$200

He is paid every two weeks. His gross pay is $400. ($200 x 2)

Net pay would be gross pay -deductions

Deductions.

Social security

= 6.2% x  $400

=$24.8

medicare

=1.45% x $400

=$5.8

Federal and State Tax

=10% x $400

=$40

Total deductions = $24.8 +$5.8 +$40=$70.6

Net pay =$400 -$70.6

=  $329.4  

he U.S. government's ability to pay for Social Security in the near future is a problem because:

Answers

Answer:

Our country's notional debt

Explanation:

Simply Imagine wants to grow their company but is hindered by increasing labor costs and import quotas.
Simply Imagine should consider becoming a(n)
(A) countertrader (B) wholly owned subsidiary (C) strategically(D) mulimatiomnal (E) franchiser

Answers

Answer:

multinational

Explanation:

A multinational business operates in at least one other country apart from its home country. The company will have factories/ offices in different countries and its headquarters in the domicile state. The operations of a multinational are coordinated at its headquarters.

By becoming a multinational, simple imagine can expand in countries with relatively cheap labor. It will overcome the import quota challenge by operating from a country without restrictions or from the source state.

which of the following should be pracited among all co workers in the workplace
a.bullying
b.discrimination
c.stereotyping
d.tolerance

Answers

Answer:

c

Explanation:

Answer:

D. Tolerance

Explanation:

Because what, you souldnt do any of the others, dude, teachers sometimes

What financing source involves wealthy individuals giving their money to fund a startup?

Answers

Answer:

Angel Investors

Explanation:

Angel investment is when a person or a group of individuals use their finances to fund a startup. These investors are wealthy and consider it fit to finance entrepreneurs based on business ideas and proposals.

Angel investors usually have excess funds and willing to risk in the early stages of a startup in anticipation of bigger returns when the business succeeds. Angel investors gain percentage ownership in the business in exchange for funding. They also offer mentorship to entrepreneurs.

Which one of the following businesses would you classify as being in the secondary sector of industry?

A) Oil exploration company
B) Family run farm business
C) Taxi operating business
D) Shoe manufacturer

Answers

Answer:

shoe manufacturer

Explanation:

TRUE OR FALSE: It is always free to use an ATM if you have a debit card

Answers

Good luck !!! This is what I found

Answer:

False

Some banks/stores will require you to pay if you use an ATM. In some cases, it is not about whether you have a debit card or not. Debit cards are primarily used to remove money from a bank account, not for ATMs.

Helppp please
The fact that a country has less strict labor laws and relaxed environmental regulations are strong reasons for a
company to move production facilities to that country.
True
False

Answers

The answer has to be true

Answer:true

Explanation: I just took the test

Which is used to trace a check back to the account on which it was written?
Group of answer choices

a valid date

an endorsement

a bank route number

a signature

Answers

Answer:

a bank route number

Explanation:

The routing number is among the three numbers found at the bottom of a check. The routing number is at the bottom left.  It serves as an ' identity ' for your bank. The routing number enables other banks to contact your bank and collect funds from your account every time you write a check.

A routing number is a unique number for every banking institution.  The number proves that the bank is a recognized financial institution with an account with the Federal Reserve.

Think of a substantial product you regularly purchase, such as video games or jeans. If supply is high and
demand is low, what happens to the cost? How might that affect someone's income? Likewise, if supply is low
and demand is high, what happens to the product's cost? How might that affect someone's income?

Answers

Answer:

See below

Explanation:

1. When the supply is high, and demand is low, an item's cost will probably come down. High supply with low demand creates a surplus in the market. Seller will offer the lowest prices possible to woe buyers.

When an item's prices go down, buyers will spend less money buying the product. The buyer saves some money, which is equivalent to having more income than before.

2. With a low supply but high demand, prices tend to go up. There will be great competition for the few goods from the many buyers. As a result, suppliers will hike prices and make more profits.

An increase in prices forces buyers to spend more money to buy the same commodities. Their disposable income decrease, which is the same as having a reduced income

Which of the following occupations is most responsible for ensuring the quality and safety of the food
supply chain?
O chefs
O farmers
O grocery store owners
O food processors

Answers

I would say farmers because all of they rely on their food producs

Answer: I am pretty sure the answer the answer would be the farmers

Explanation: the food comes form the farmers, including meats, veggies, fruits, well you get the point. And if there is something bad with one of the meat animals, they are in charge of not selling the "bad meat" to any stores or big meat companies

Virtue ethics places great focus on which of the following

Answers

Answer:

character i think.

Explanation:

A _____ is an estimation about a future situation based on the evaluation of facts.

1. projection
2. fact
3. salary
4. growth

Answers

Answer:

Projection

Explanation:

Answer:

Yes the correct answer is (PROJECTION)

Explanation:

Trish bought a new computer that she has been using for a few weeks. She is starting to experience pain in her wrists, back and neck. What measure should Trish take to reduce strain while working on the computer?

A. complete all her work soon on the computer by sitting at a stretch
B. maximize the brightness of the screen to concentrate better
C. ensure back support by using cushions
D. keep hands and wrists stiff while typing

Answers

Answer:

C ensure back support by using cushions

Answer:

C

Explanation:

Her problem is that be back is hurting, and adding cushions will ensure back support and then that will not be a problem for her anymore.

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invented the transistor and started a company that led to the growth of Silicon Valley as a technology hub. can someone help me with this question 5. The utility U(x, y) = xy and consumer has income $120. Initially, Px= 4 and Py= 1.a). Calculate the income and substitution effects of a decrease in the price of food to $3.b) Calculate the compensating variation of the price change.c) Calculate the equivalent variation of the price change.Expert Answer Political experiment of equality: Khmer rouge (200) wordsessay ineed helpOne of the easiest and most important things you can do to protect your property is to document what you own. In addition to recording serial numbers, descriptions and projected values, it is a good i Use the information below to answer the question(s) that follow(s) A student filled three beakers, each with 50 milliliters of liquid wafer. The student cooled Beaker 1 to form ice. The student heated Beaker 2 to form wafer vapor (gas). Beaker 3 remained at room temperature. The student removed Beaker 1 from the freezer the next day. When the student turned the beaker over, a block of ice fell out and broke into small pieces. Which statement describes the relationship between the mass of the block of ice and the mass of the small pieces of ice? *4 points A The mass of the block of ice was slightly greater because some of the small pieces melted. B The mass of the block of ice was less than the total mass of the smaller pieces of ice. C The mass of the block of ice was equal to the total mass of the smaller pieces of ice. D The mass of the block of ice was greater than the total mass of the smaller pieces of ice. 2. What happens to the rabbit population each time there is an increase in the lynx population? PLS HELP SUPER URGENT WILL RATE 5 AND MARK BRAINLIESTThe players of a high school football team were traveling home from their football game in Fernandina Beach, Florida. It had been a tough night. It was August and still hot. The game had lasted three hours, and the players had to play offense, defense, and special teams because there were not enough players to field all positions. During the bus trip home, several of the athletes consumed multiple energy drinks in an attempt to regain their strength for a celebration party they planned to attend later that evening. Despite the odds, they had won their game.About half an hour into the trip home, a player named Joseph, a junior running back, began screaming from the back of the bus. When the coaches and athletic trainer reached Joseph's seat, they found him lying in the middle of the aisle, clenching his hamstrings and calf muscles in pain. He was yelling and wailing about his muscles cramping.When the athletic trainer examined Joseph, he discovered that the calves, hamstrings, and quadriceps of Josephs legs were in a tight and unyielding contraction. The athletic trainer immediately surmised that the athlete was cramping due to severe dehydration. To treat his symptoms, the athletic trainer coaxed the student to drink Gatorade, water, and juice. He also stretched and massaged all the muscle groups in an attempt to get the muscles to release their contraction. Ice packs were applied between stretches to help reduce the pain. After an hour, the muscle contractions in Josephs legs finally stopped.Answer these questions:Please describe the signal transmission across a myoneural junction that allows the nervous system to move the muscles of a football player during a game? Please be detailed with your description. Hint: Review your video worksheets from your lesson for details on nerve impulse transmission. (5 points)What environmental and behavioral factors led to Joseph's dehydration event? (4 points)In the lesson, you learned how a nerve impulse transmits through a neuron and into muscle tissue. Using this knowledge, can you explain why dehydration caused Joseph's muscle cramping? Please be detailed with your response. Hint: During dehydration, people lose a large amount of sodium. (5 points)According to the video segment in this lesson, caffeine can have adverse effects on synaptic transmissions. How do you think caffeine contributed to Joseph's muscle cramping? (5 points)Sports drink companies, such as Gatorade or Powerade, add sodium and potassium to their sport drinks. They refer to these minerals as electrolytes. Why do you think they assign these minerals that name? Why do they put sodium and potassium in the drinks? Hint: Review your video note worksheet on neuromuscular junctions. (5 points) Earthquakes are relatively common throughout the west coast, especially in California. The map of California seen here gives you an idea why. Explain what is happening along the red arrows on the map.A. The pacific plate and the North American plate are diverging.B. 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Assume the following: the investors required rate of return is 13.5 percent. the expected level of eamings at the end of this year (E is $8. the retention ratio is 50 percent. the retum on equity (ROE) is 15 percent (that is, it can earn 15 percent on reinvested earnings), and similar shares of stock sell at multiples of 8.334 times earnings per share. Questions: a. Deterrnine the expected growth rate for dividends. b. Determine the price earnings ratio (P/E,). c. What is the stock prioe using the P/E ratio valuation method? d. What is the stock price usina the dividend discount model? c. What is the stock price using the P/E ratio valuation method? S 66.67 (Round to the nearest cent.) d. What is the stock price using the dividend discount model? S 66.67 (Round to the nearest cent.) e. (i) Using the dividend discount model, what would be the stock price if the company increased its retention rate to 80% (holding all else constant)? S 106.67 (Round to the nearest cent.) What would be the P/E ratio (P/E) if the company increased its retention ratio to 80% (holding all else constant)? (Round to three decimal places.) Surrealists are known for their: Consider the following table of costs and benefits from a governmental policy to clean the water in a local area. a. What level of abatement is most efficient by general economic criteria? b. Would a 70 percent level of abatement pass a cost-benefit test? Is it efficient? c. How would you respond to those who argue for 100 percent abatement? On January 1, 2020, Marlene Corp. enters into an agreement with Dietrich Rentals Inc. to lease a machine from them. Both corporations adhere to ASPE. The following data relate to the agreement: 1. The term of the non-cancellable lease is three years with no renewal option. Payments of $271,622 are due on December 31 of each year. 2. The fair value of the machine on January 1, 2020, is $700,640. The machine has a remaining economic life of 10 years, with no residual value. The machine reverts to the lessor upon the termination of the lease. 3. Marlene depreciates all its machinery on a straight-line basis. 4. Marlene's incremental borrowing rate is 10%. Marlene does have knowledge of the 8% implicit rate used by Dietrich. 5. Immediately after signing the lease, Dietrich discovers that Marlene is the defendant in a lawsuit that is sufficiently material to make collectibility of future lease payments doubtful. Assume the present value of the lease payments is $700,000 at January 1, 2020. If Marlene accounts for this lease as a finance lease, what is the amount of the reduction in the lease obligation in calendar 2021? (Round to the nearest dollar.) Four and one-half years ago, Glenda purchased 15 $1000 bonds in a Province of New Brunswick issue carrying an 8.5% coupon and priced to yield 9.8% (compounded semiannually). The bonds then had 18 years remaining until maturity. The bond market now requires a yield to maturity on the bonds of 8.0% compounded semiannually. If Glenda sells the bonds today, what will be the dollar amount of her capital gain or loss? The null hypothesis is the claim that the researcher wants to prove. O True O False identify the terms,coefficients,and constants in the exspression 6m2+7n What are some of the technologies used by both sides in Spanish American war Diana placed three tomato plants (A, B, C) under three different types of light. She measured the height of each plant after 3 weeks. What is the independent variable? O the tomato plant the type of light O the height of the plant O 3 weeks