Suppose a market has two firms that sell identical products. These firms face an inverse market...
- Suppose a market has two firms that sell identical products.
These firms face an inverse market demand function of P=120 – Q.
Firm 1 has a constant MC=20. Firm 2’s marginal cost is MC=30.
- Find the Cournot equilibrium price, quantities, and profits for each firm.
- If these firms were able to perfectly collude, what would be the monopoly equilibrium?
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Suppose a market has two firms that sell identical products.
These firms face an inverse market...
Two firms sell identical products and compete as Cournot (price-setting) competitors in a market with a...
Two firms sell identical products and compete as Cournot (price-setting) competitors in a market with a demand of p = 150 - Q. Each firm has a constant marginal and average cost of $3 per unit of output. Find the quantity each firm will produce and the price in equilibrium.
Question 2. XYZ and MLN are two firms that produce identical woomeras that they sell to...
Question 2. XYZ and MLN are two firms that produce identical woomeras that they sell to a market that has inverse demand p=10-Q, where Q is total market supply. XYZ has constant marginal cost of $1 per unit, and MLN has constant marginal cost of $2 per unit. The two firms are engaged in Cournot competition. (a) What are equilibrium quantities and profits?
Suppose there is a duopoly of two identical firms, A and B, facing a market inverse...
Suppose there is a duopoly of two identical firms, A and B, facing a market inverse demand of ?=640−2?, and cost functions of ?? =40?? and ?? =40?? respectively. Find the Cournot-Nash equilibrium and profit for each firm. Suppose that A acts as the leader in a Stackelberg model and B responds. What are the respective quantities and profits of each firm now? Is it advantageous to move first? What are the prices, quantities and profits for the firms if...
Two identical firms compete as a Cournot duopoly. The inverse market demand they face is P...
Two identical firms compete as a Cournot duopoly. The inverse market demand they face is P = 120-2Q. The total cost function for each firm is TC1(Q) = 4Q1. The total cost function for firm 2 is TC2(Q) = 2Q2. What is the output of each firm? Find: Q1 = ? Q2 = ?
pls answer as many qwuestions!! 1. A market has an inverse demand curve and four firms,...
pls
answer as many qwuestions!!
1. A market has an inverse demand curve and four firms, each of which has a constant marginal cost of. If the firms form a profit-maximizing cartel and agree to operate subject to the constraint that each firm will produce the same output level, how much does each firm produce? 2. Duopoly quantity-setting firms face the market demand curve. Each firm has a marginal cost of $60 per unit. a. What is the Nash-Cournot equilibrium?...
please explain all details. Market demand curve for a good produced only by two firms is...
please explain all details.
Market demand curve for a good produced only by two
firms is given by P= 70- 20. Both firms produce with constant and
identical marginal cost of 3. 10, that is MC, = MC, = 10.
(P,Q.4-42,) in Cournot equilibrium. a) Find b) Find (P,Q,q1,92,,,
2) in Stackelberg equilibrium with Firm 1 acting as the leader. c)
Compare your findings with monopoly and competitive equilibria.
Market demand curve for a good produced only by two firms...
Two identical firms face a linear demand curve (written as inverse demand of P = 50...
Two identical firms face a linear demand curve (written as inverse demand of P = 50 -0.50, The marginal cost for each firm is MC = 0. Assume that both firms compete as Cournot dupolists. Find the equilibrium output for each firm and the market price. o Select one: a. Each firm will produce 66.67 units, and the market price is $33.33 b. Each firm will produce 25 units, and the market price is $25 c. Each firm will produce...
Can someone help with the problem below? Suppose two oligopolistic firms face a market (inverse) demand curve P(Y + Y2...
Can someone help with the problem below?
Suppose two oligopolistic firms face a market (inverse) demand curve P(Y + Y2) = 20 - (Y1 + Y). Both firms produce at constant marginal cost, but they are not symmetric: firm 1 has marginal cost 2 and firm 2 has marginal cost 4. For each of the following competitive situations below, compute: • The equilibrium price. • The equilibrium quantities produced by each firm. • The profits received by each firm. (a)...
PROBLEM #1 Consider a market with two firms that sell products that are identical. Su market dema...
PROBLEM #1 Consider a market with two firms that sell products that are identical. Su market demand is as follows: P-56-Q , where Q measures the total output produced by both firms (that is, Q=q +q.) and qi and q, are the quantities produced by firm 1 and firm 2, respectively. The per-unit cost of production is $6 for each firm, and so the firm's cost functions are 6q, and 6q, respectively. Each firm seeks to maximize profits. The firms...
Two firms are producing identical goods in a market characterized by the inverse demand curve P...
Two firms are producing identical goods in a market characterized by the inverse demand curve P = 120 – 4Q, where Q is the sum of Firm 1's and Firm 2's output, q1 + q2. Each firm's marginal cost is constant at $20. Graph the reaction function for each firm and indicate the Nash equilibrium.
Question 2. XYZ and MLN are two firms that produce identical woomeras that they sell to a market that has inverse demand p=10-Q, where Q is total market supply. XYZ has constant marginal cost of $1 per unit, and MLN has constant marginal cost of $2 per unit. The two firms are engaged in Cournot competition. (a) What are equilibrium quantities and profits?
pls
answer as many qwuestions!!
1. A market has an inverse demand curve and four firms, each of which has a constant marginal cost of. If the firms form a profit-maximizing cartel and agree to operate subject to the constraint that each firm will produce the same output level, how much does each firm produce? 2. Duopoly quantity-setting firms face the market demand curve. Each firm has a marginal cost of $60 per unit. a. What is the Nash-Cournot equilibrium?...
please explain all details.
Market demand curve for a good produced only by two
firms is given by P= 70- 20. Both firms produce with constant and
identical marginal cost of 3. 10, that is MC, = MC, = 10.
(P,Q.4-42,) in Cournot equilibrium. a) Find b) Find (P,Q,q1,92,,,
2) in Stackelberg equilibrium with Firm 1 acting as the leader. c)
Compare your findings with monopoly and competitive equilibria.
Market demand curve for a good produced only by two firms...
Two identical firms face a linear demand curve (written as inverse demand of P = 50 -0.50, The marginal cost for each firm is MC = 0. Assume that both firms compete as Cournot dupolists. Find the equilibrium output for each firm and the market price. o Select one: a. Each firm will produce 66.67 units, and the market price is $33.33 b. Each firm will produce 25 units, and the market price is $25 c. Each firm will produce...
Can someone help with the problem below?
Suppose two oligopolistic firms face a market (inverse) demand curve P(Y + Y2) = 20 - (Y1 + Y). Both firms produce at constant marginal cost, but they are not symmetric: firm 1 has marginal cost 2 and firm 2 has marginal cost 4. For each of the following competitive situations below, compute: • The equilibrium price. • The equilibrium quantities produced by each firm. • The profits received by each firm. (a)...
PROBLEM #1 Consider a market with two firms that sell products that are identical. Su market demand is as follows: P-56-Q , where Q measures the total output produced by both firms (that is, Q=q +q.) and qi and q, are the quantities produced by firm 1 and firm 2, respectively. The per-unit cost of production is $6 for each firm, and so the firm's cost functions are 6q, and 6q, respectively. Each firm seeks to maximize profits. The firms...
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