Two firms compete as duopolists, producing identical goods in quantities q1 and q2, respectively. assume the inverse market demand function for their product is:
p = 840 - q1 - q2.
firm #1 and firm #2 have the same total cost function: tci = (qi)^2_[i. e., mc1 = 2q1 and mc2 = 2q2].
a) suppose that the duopolists behave as a cartel (and thus produce as a single "multi-plant" firm), with a combined profit function of
840(q1) + 840(q2) - 2(q1)(q2) - 2(q1)^2 - 2(q2)^2
find the profit-maximizing output for each "plant" under this scenario.
b)
1. find the profit maximizing output for each individual firm when the duopolists behave as cournot competitors.
2. find the profit maximizing output for each individual firm under the stackelberg solution, with firm #1 representing the market leader.

Walsh company manufactures and sells one product. the following information pertains to each of the company’s first two years of operations: variable costs per unit: manufacturing: direct materials $ 25 direct labor $ 12 variable manufacturing overhead $ 5 variable selling and administrative $ 4 fixed costs per year: fixed manufacturing overhead $ 400,000 fixed selling and administrative expenses $ 60,000 during its first year of operations, walsh produced 50,000 units and sold 40,000 units. during its second year of operations, it produced 40,000 units and sold 50,000 units. the selling price of the company’s product is $83 per unit. required: 1. assume the company uses variable costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 2. assume the company uses absorption costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 3. reconcile the difference between variable costing and absorption costing net operating income in year 1.

Computing equivalent units is especially important for: (a) goods that take a relatively short time to produce, such as plastic bottles. (b) goods with sustainability implications in their production processes. (c) goods that are started and completed during the same period. (d) goods that take a long time to produce, such as airplanes.

Consumers who participate in the sharing economy seem willing to interact with total strangers. despite safety and privacy concerns, what do you think is the long-term outlook for this change in the way we think about interacting with people whom we don't know? how can businesses to diminish worries some people may have about these practices?