Two firms produce closely-related products, and have marginal costs MC1=10 and MC2=20. The market supplied by...
Two firms produce closely-related products, and have marginal costs MC1=10 and MC2=20. The market supplied by firm 1 has demand Q1=100-2p1+p2, while 2's market has demand Q2=100+p1-2p2. The two firms are engaged in Bertrand price competition.
3(a)What is the intercept of firm 1's price reaction curve? (One digit after the decimal point only)
3(b) What is the slope of firm 1's price reaction curve? (One digit after the decimal point only)
3(c) What is the intercept of firm 2's price reaction curve?
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Two firms produce closely-related products, and have marginal
costs MC1=10 and MC2=20. The market supplied
by...
Two firms produce closely-related products and have marginal costs MC1=10 and MC2=20. The market supplied by...
Two firms produce closely-related products and have marginal
costs MC1=10 and MC2=20. The market supplied by firm 1 has demand
Q1=100-2p1+p2, while 2's market has demand Q2=100+p1-2p2. The two
firms are engaged in Bertrand price competition.
Two firms produce closely-related products, and have marginal costs MC1-10 and MC2-20. The market supplied by firm 1 has demand Q1 = 100-2p1+P2, while 2's market has demand Q2=100+p1- 2p2. The two firms are engaged in Bertrand price competition. 3(a)What is the intercept of...
Two firms produce closely-related products, and have marginal costs MC1 10 and MC2=20. The market supplied...
Two firms produce closely-related products, and have marginal costs MC1 10 and MC2=20. The market supplied by firm 1 has demand Q1-100-2p1+p2, while 2's market has demand Q2-100+p1 2p2. The two firms are engaged in Bertrand price competition. 3(a)What is the intercept of firm 1's price reaction curve? (One digit after the decimal point only) Question 8 1 pts 3(b) What is the slope of firm 1's price reaction curve? (One digit after the decimal point only) Question 9 1...
Question 7 1 pts Two firms produce closely-related products, and have marginal costs MC1=10 and MC2=20. The market...
Question 7 1 pts Two firms produce closely-related products, and have marginal costs MC1=10 and MC2=20. The market supplied by firm 1 has demand Q1=100-2p1+P2, while 2's market has demand Q2=100+p1-2p2. The two firms are engaged in Bertrand price competition. 3(a)What is the intercept of firm 1's price reaction curve? (One digit after the decimal point only) Question 8 1 pts 3(b) What is the slope of firm 1's price reaction curve? (One digit after the decimal point only) Question...
Suppose that identical duopoly firms have constant marginal costs of $16 per unit. Firm 1 faces...
Suppose that identical duopoly firms have constant marginal costs of $16 per unit. Firm 1 faces a demand function of q1 130-2p1+1p2 where q1 is Firm 1's output, p1 is Firm 1's price, and p2 is Firm 2's price. Similarly, the demand Firm 2 faces is 2 130-2P2+ 1p1 Solve for the Bertrand equilibrium. Note that OTI _-130-2p1 + 1p2-2p1 +32-0 op1 and oP2 p 130-2p2+ 1p1-2p2+320 In equilibrium, p1 equals $and p2 eqs (Enter numeric responses using integers.)
Suppose there are two firms in a market producing differentiated products. Both firms have MC=0. The...
Suppose there are two firms in a market producing differentiated products. Both firms have MC=0. The demand for firm 1 and 2’s products are given by: q1(p1,p2) = 5 - 2p1 + p2 q2(p1,p2) = 5 - 2p2 + p1 a. First, suppose that the two firms compete in prices (i.e. Bertrand). Compute and graph each firm’s best response functions. What is the sign of the slope of the firms’ best-response functions? Are prices strategic substitutes or complements? b. Solve...
There are 2 firms in a market producing differentiated products. The firms both have MC that...
There are 2 firms in a market producing differentiated products. The firms both have MC that is equal to 0 Firm 1 demand is q1(p1,p2) = 6-2p1 + p2 Firm 2 demand is q2(p1,p2) = 6-2p2 + p1 1. Firms compete in quantities- Cournot Competition. What are the inverse demand functions for firm 1 and 2? 2. Find and graph each firm’s best response functions. The quantities are strategic substitutes or complements? 3. Find the Nash equilibrium prices and quantities...
3. A market consists of 100 identical firms and the market demand curve is given by...
3. A market consists of 100 identical firms and the market demand curve is given by D(P) = 60 - P. Each firm has a short-run total cost curve STC(q)-0.1+150q2. What is the short-run equilibrium price and quantity in this market? 4. The short-run marginal cost curves of two types of firms in an industry are given as MC1 = 3q and MC2 = 5q respectively. There are 100 firms of each type. If these firms behave competitively, determine the...
The market for widgets consists of two firms that produce identical products. Competition in the market...
The market for widgets consists of two firms that produce identical products. Competition in the market is such that each of the firms independently produces a quantity of output, and these quantities are then sold in the market at a price that is determined by the total amount produced by the two firms. Firm 2 is known to have a cost advantage over firm 1. A recent study found that the (inverse) market demand curve faced by the two firms...
3. Two firms that are engaged in Stackelberg competition face the market inverse demand curve P-100-2Q,...
3. Two firms that are engaged in Stackelberg competition face the market inverse demand curve P-100-2Q, where Q is the total 22-0.Sqy, what is Firm 1's (the first-mover's) nverse demand une output, q2. Each firm produces the product at a constant marginal cost of $22. If Firm 2's reaction function is P 56-4 OP=100-2(92-22 + 0.050;) OP=88-1.541 P 88-24
Consider a market in which two firms i = 1,2 produce a homogeneousproduct at constant marginal...
Consider a market in which two firms i = 1,2 produce a homogeneousproduct at constant marginal cost c= 4, facing total demand described by the linear inverse demand curve P= 16−Q. First assume that the firms compete by simultaneously choosing prices a la Bertrand. a. Suppose that F1 expects F2 to set some price p2 above the marginal cost c but below the monopoly price pm. What is F1’s best response BR1(p2) to this price p2? b. What is the...
Two firms produce closely-related products and have marginal
costs MC1=10 and MC2=20. The market supplied by firm 1 has demand
Q1=100-2p1+p2, while 2's market has demand Q2=100+p1-2p2. The two
firms are engaged in Bertrand price competition.
Two firms produce closely-related products, and have marginal costs MC1-10 and MC2-20. The market supplied by firm 1 has demand Q1 = 100-2p1+P2, while 2's market has demand Q2=100+p1- 2p2. The two firms are engaged in Bertrand price competition. 3(a)What is the intercept of...
Two firms produce closely-related products, and have marginal costs MC1 10 and MC2=20. The market supplied by firm 1 has demand Q1-100-2p1+p2, while 2's market has demand Q2-100+p1 2p2. The two firms are engaged in Bertrand price competition. 3(a)What is the intercept of firm 1's price reaction curve? (One digit after the decimal point only) Question 8 1 pts 3(b) What is the slope of firm 1's price reaction curve? (One digit after the decimal point only) Question 9 1...
Question 7 1 pts Two firms produce closely-related products, and have marginal costs MC1=10 and MC2=20. The market supplied by firm 1 has demand Q1=100-2p1+P2, while 2's market has demand Q2=100+p1-2p2. The two firms are engaged in Bertrand price competition. 3(a)What is the intercept of firm 1's price reaction curve? (One digit after the decimal point only) Question 8 1 pts 3(b) What is the slope of firm 1's price reaction curve? (One digit after the decimal point only) Question...
Suppose that identical duopoly firms have constant marginal costs of $16 per unit. Firm 1 faces a demand function of q1 130-2p1+1p2 where q1 is Firm 1's output, p1 is Firm 1's price, and p2 is Firm 2's price. Similarly, the demand Firm 2 faces is 2 130-2P2+ 1p1 Solve for the Bertrand equilibrium. Note that OTI _-130-2p1 + 1p2-2p1 +32-0 op1 and oP2 p 130-2p2+ 1p1-2p2+320 In equilibrium, p1 equals $and p2 eqs (Enter numeric responses using integers.)
3. A market consists of 100 identical firms and the market demand curve is given by D(P) = 60 - P. Each firm has a short-run total cost curve STC(q)-0.1+150q2. What is the short-run equilibrium price and quantity in this market? 4. The short-run marginal cost curves of two types of firms in an industry are given as MC1 = 3q and MC2 = 5q respectively. There are 100 firms of each type. If these firms behave competitively, determine the...
3. Two firms that are engaged in Stackelberg competition face the market inverse demand curve P-100-2Q, where Q is the total 22-0.Sqy, what is Firm 1's (the first-mover's) nverse demand une output, q2. Each firm produces the product at a constant marginal cost of $22. If Firm 2's reaction function is P 56-4 OP=100-2(92-22 + 0.050;) OP=88-1.541 P 88-24
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