Amy and soma discover a stream that flows wine. amy and soma decide to bottle the wine and sell it. the marginal cost and the fixed cost to bottle wine are $4 and zero respectively.
the market demand for bottled wine is given by: p = 904 -5q, where q is the total quantity of bottled wine produced and pis the market price of bottled wine.

answer the following questions.

a. what are the economically efficient (in other words, perfectly competitive) price and quantity of bottled wine? show your work. how much will be the profit? (1+1+2+2 = 6 points)

b. if amy and soma were to collude with one another and produce the profit-maximizing monopoly quantity of bottled wine and share the profit equally, how much bottled wine will each one of them produce? show your work. at what price? how much profit will each one of them earn? (2+2+2+2 - 8 points)

c. suppose that amy and soma act as cournot duopolists. how much bottled wine will each one of them produce? show your work. at what price? how much profit will each one of them earn? (2+8+2+2 = 14 points)

d. suppose soma is a "naive" cournot duopolist so that amy can act as a stackelberg leader. what level of output will each one of them produce? show your work. what will be the price of wine? how much will be the profit for each one of them? (4+6+2+4 = 16 points)

Exercise 18-15 sheffield appliance center is an experienced home appliance dealer. sheffield appliance center also offers a number of services for the home appliances that it sells. assume that sheffield appliance center sells ovens on a standalone basis. sheffield appliance center also sells installation services and maintenance services for ovens. however, sheffield appliance center does not offer installation or maintenance services to customers who buy ovens from other vendors. pricing for ovens is as follows. oven only $790 oven with installation service 850 oven with maintenance services 970 oven with installation and maintenance services 990 in each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $180. additionally, the incremental amount charged by sheffield appliance center for installation approximates the amount charged by independent third parties. ovens are sold subject to a general right of return. if a customer purchases an oven with installation and/or maintenance services, in the event sheffield appliance center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $790. assume that a customer purchases an oven with both installation and maintenance services for $990. (b) indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract.

The following are the current month's balances for abc financial services, inc. before preparing the trial balance. accounts payable $ 10,000 revenue 6,000 cash 3,000 expenses 17,500 furniture 10,000 accounts receivable 14,000 common stock ? notes payable 6,500 what amount should be shown for common stock on the trial balance? a. $48.000b. $12.500c. $27.000d. $28.000

Within the relevant range, if there is a change in the level of the cost driver, then a. total fixed costs will remain the same and total variable costs will change b. total fixed costs will change and total variable costs will remain the same c. total fixed costs and total variable costs will change d. total fixed costs and total variable costs will remain the same