Suppose that Mystic Energy and E-Storm are the only two producers of hydrogen fuel cells. The market inverse demand curve for hydrogen fuel cells is P = 1,300 – 0.08Q, where Q is the number of fuels cells per month and P is the price per fuel cell. The marginal cost is constant at $500. Acting as a cartel, the owners of Mystic Energy and E-Storm agree to evenly split the market output. In this case, each firm produces .

The amount each firm produces would be 2,500 units per month

Explanation:

According to the given data we have the following:

demand curve for hydrogen fuel cells= P = 1,300 – 0.08Q

marginal cost=$500

Therefore, in order to calculate the amount each firm produces we would have to use the following formula:

MR = MC

This gives 1300 - 0.16Q = 500 or Q = 5000 units

Therefore, The amount Each of them would be producing= 5,000/2 = 2500 amount Each of them would be producing=2,500 units per month

The amount each firm produces would be 2,500 units per month

Rylan's stock would sell for $21.96 at the end of the four years

Explanation:

PV = Current Price = $31.27

D = Dividend paid each year =$5.70

r = Equity cost of capital = 12%

FV = Price of Rylan's stock at the end of four years = ??

N = Number of years = 4

PV = D +

31.27 = 5.70 +

Solve for FV,

FV = $21.96

Rylan's stock would sell for $21.96 at the end of the four years