# New York University ECON-SHU ECON-SHU COR1-GB.13 There are only 2 producers of “gadgets”: Blue Gadgets Inc. (B)…

New York University ECON-SHU ECON-SHU COR1-GB.13 There are only 2 producers of “gadgets”: Blue Gadgets Inc. (B)…

There are only 2 producers of “gadgets”: Blue Gadgets Inc. (B) produces only blue gadgets; the Green Gadget Company (G) produces only green gadgets. Although the customers of gadgets Firms & Markets Take-at-Home Final Exam Page 6 care about the price of the gadgets that they buy, they also have preferences as to color: some customers prefer green gadgets; some customers prefer blue gadgets. These preferences are expressed in terms of the demand curves for each company’s products (where Q is millions of gadgets per year and P is the price per gadget):

Don't use plagiarized sources. Get Your Custom Essay on
New York University ECON-SHU ECON-SHU COR1-GB.13 There are only 2 producers of “gadgets”: Blue Gadgets Inc. (B)…
Just from \$5/Page

QB = 400 – 40*PB + 40*PG

QG = 400 – 40*PG + 40*PB

The marginal costs for producing gadgets are the same for both companies: MCB = MCG = \$10.

If each company competes on the basis of price (and each company assumes that the other company’s price is unaffected by the first company’s pricing), what will be the equilibrium outcome in terms of the prices, quantities, and profits for the 2 firms. Explain your answer (or show your work).

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

### Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.