Two Companies (A and B)are Duopolists That Produce Identical Products

question 21

Essay

Two companies (A and B)are duopolists that produce identical products.Demand for the products is given by the following demand function:

P = 10,000 - Q_A - Q_B

where Q_A and Q_B are the quantities sold by the respective firms and P is the selling price.

Total cost functions for the two companies are:

TC_A = 500,000 + 200Q_A + .5Q_A²
TC_B = 200,000 + 400Q_B + Q_B²

Assume that the firms form a cartel to maximize total industry profits (sum of Firm A and Firm B profits).Determine the optimum output and selling price for each firm.

Understand the implications and criticisms of management by objectives.

Recognize the application of motivation theories to real-world organizational issues.

Explain how motivation theories guide management practices and decision-making.

Understand the attributes and benefits of emotional intelligence in personal and professional settings.

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Definitions:

State Institutions

Refers to organizations and structures created by the government to provide public services, enforce laws, and support governance, such as schools, hospitals, and police forces.

Baby Boom Generation

The demographic cohort following World War II, typically defined as those born from 1946 to 1964, known for its significant impact on economy, culture, and politics.

Increasing Birthrates

A phenomenon indicating a rise in the number of births per 1,000 people in a population over a certain period.

Mandatory Retirement

A policy that requires employees to retire at a specific age, often seen as controversial.