You Are the Manager of a Firm in a New

question 32

Essay

You are the manager of a firm in a new industry.You have gotten the jump on the only other producer in the market.You know what your competitor's cost function is,and it knows yours.Your products,although different to experts,are indistinguishable to the average consumer.Your marketing research team has provided you with the following market demand curve:
Q = 1,250 − .5P.Your cost function is C_A(Q_A)= 8Q_A.Your competitor's cost function is C_B(Q_B)= 6Q_B.Your diligent effort will allow you to decide how much of your product to provide and will allow you to place it on the market shortly before your competitor will be able to make its product available for sale.What output level will you choose,and what price will you charge?

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Definitions:

Sexual Development

The process by which individuals reach sexual maturity and develop the physical characteristics of their gender and a sense of their sexual identity and orientation.

Parasympathetic

A component of the autonomic nervous system responsible for energy conservation by reducing the heart rate, enhancing activity in the intestines and glands, and loosening the sphincter muscles within the gastrointestinal tract.

Sympathetic

Part of the autonomic nervous system that prepares the body for 'fight or flight' responses, increasing heart rate and blood flow to muscles.

Nervous System

A network of billions of cells in the brain and the body, responsible for all aspects of what we think, feel, and do.