Homework Answers
Add Answer to:
6. Consider 2 tour companies, Blue Dolphin and Aloha Adventures, that are the sole providers of...
4. Consider 2 firms selling fertilizer competing as Cournot duopolists. The inverse demand function facing the...
4. Consider 2 firms selling fertilizer competing as Cournot duopolists. The inverse demand function facing the fertilizer market is P = 1 - where Q = 94 +98. For simplicity, assume that the long-run marginal cost for each firm is equal to X, i.e. C(q)=Xq for each firm. a) Find the Cournot Nash equilibrium where the firms choose output simultaneously b) Find the Stackelberg Nash Equilibrium where firm A as the Stackelberg leader. How much does the leader gain by...
= Consider an industry consisting of two firms which produce a homogeneous commodity. The industry demand...
= Consider an industry consisting of two firms which produce a homogeneous commodity. The industry demand function is Q = 100 – P, where Q is the quantity demanded and P is its price. The total cost functions are given as C1 = 50q1 for firm 1, and C2 = 60qz for firm 2, where Q 91 +92. a. (6 points) Suppose both firms are Cournot duopolists. Find and graph each firm's reaction function. What would be the equilibrium price,...
2*. Consider a market with two firms where the inverse demand function is given by p...
2*. Consider a market with two firms where the inverse demand function is given by p = 28 - 2q and where q = q1 + q2. Each firm has the total cost function c(qi) = 4qi, where i = {1,2}. a) Compare price level, quantities and profits in this market calculating the Cournot equilibrium and the Stackelberg equilibrium. Draw a graph with best response functions and illustrate the Cournot and Stackelberg solutions in that graph. b) Compare your solutions...
2*. Consider a market with two firms where the inverse demand function is given by p...
2*. Consider a market with two firms where the inverse demand function is given by p = 28 - 2q and where q = q1 + q2. Each firm has the total cost function c(qi) = 4qi, where i = {1,2}. a) Compare price level, quantities and profits in this market calculating the Cournot equilibrium and the Stackelberg equilibrium. Draw a graph with best response functions and illustrate the Cournot and Stackelberg solutions in that graph. b) Compare your solutions...
2*. Consider a market with two firms where the inverse demand function is given by p...
2*. Consider a market with two firms where the inverse demand function is given by p = 28 - 2q and where q = q1 + q2. Each firm has the total cost function c(qi) = 4qi, where i = {1,2}. a) Compare price level, quantities and profits in this market calculating the Cournot equilibrium and the Stackelberg equilibrium. Draw a graph with best response functions and illustrate the Cournot and Stackelberg solutions in that graph. b) Compare your solutions...
2. Matthew is considering selling a painting in an English auction. There are n bidders whose...
2. Matthew is considering selling a painting in an English auction. There are n bidders whose valuations are distributed independently and uniformly on (VL, Vu]. a) What is his expected payoff from the auction? b) A private buyer is willing to pay (VL + vu)/2. What is the minimum number of bidders required for Matthew to choose the auction rather than sell to the private buyer? (Assume Matthew is risk neutral.) 3. Two firms compete by setting quantities. Firm A...
Assume that there are two firms competing in the market for taxi services, Company U and...
Assume that there are two firms competing in the market for taxi services, Company U and Company G. Company U has a marginal cost MCUB = $6 per trip, and a fixed cost FCUB = $2,500,000; while Company G has a marginal cost MCGC = $12 per trip, and a fixed cost FCGC = $1,500,000. The inverse demand for taxi trips in the market is given by the function: ?=60−?/10,000 In this equation, P is the price of a taxi...
1.Consider an industry with only two firms that produce identical products. Each of the firms only...
1.Consider an industry with only two firms that produce identical products. Each of the firms only incurs a fixed cost of $1000 to produce and marginal cost is 20. The market demand function is as follows: Q=q1+q2=400-P a. Assuming that the firms form a cartel, calculate the profit-maximizing quantity of output, price and profits b. If the firms choose to behave as in the Cournot model, what would be the profit- maximizing quantities of output, price and profits? c. if...
6. Entry Deterrence 2: Consider the Cournot duopoly game with demand p= 100 - (qı+q2) and...
6. Entry Deterrence 2: Consider the Cournot duopoly game with demand p= 100 - (qı+q2) and variable costs c;(q;) = 0 for i € {1, 2}. The twist is that there is now a fixed cost of production k > 0 that is the same for both firms. Assume first that both firms choose their quantities simultaneously. Model this as a normal-form game. b. Write down the firm's best-response function for k = 1000 and solve for a pure-strategy Nash...
Mathematical Question 2 (20pts) 2. Consider a Cournot competition model with two firms, 1 and 2....
Mathematical Question 2 (20pts) 2. Consider a Cournot competition model with two firms, 1 and 2. They produce identical goods in the same market with demand function P= 100-5Q with Q=91 +92- Furthermore, their production process generates pollution to the environment, which increases their cost of production. Their cost functions are given by C191,92) = 1091- +5Q and C291,92) = 15922 +45Q. a. (10pts) Calculate their equilibrium quantities, price, and profits for both firms. b. (5pts) Consider they collude and...
4. Consider 2 firms selling fertilizer competing as Cournot duopolists. The inverse demand function facing the fertilizer market is P = 1 - where Q = 94 +98. For simplicity, assume that the long-run marginal cost for each firm is equal to X, i.e. C(q)=Xq for each firm. a) Find the Cournot Nash equilibrium where the firms choose output simultaneously b) Find the Stackelberg Nash Equilibrium where firm A as the Stackelberg leader. How much does the leader gain by...
= Consider an industry consisting of two firms which produce a homogeneous commodity. The industry demand function is Q = 100 – P, where Q is the quantity demanded and P is its price. The total cost functions are given as C1 = 50q1 for firm 1, and C2 = 60qz for firm 2, where Q 91 +92. a. (6 points) Suppose both firms are Cournot duopolists. Find and graph each firm's reaction function. What would be the equilibrium price,...
2. Matthew is considering selling a painting in an English auction. There are n bidders whose valuations are distributed independently and uniformly on (VL, Vu]. a) What is his expected payoff from the auction? b) A private buyer is willing to pay (VL + vu)/2. What is the minimum number of bidders required for Matthew to choose the auction rather than sell to the private buyer? (Assume Matthew is risk neutral.) 3. Two firms compete by setting quantities. Firm A...
6. Entry Deterrence 2: Consider the Cournot duopoly game with demand p= 100 - (qı+q2) and variable costs c;(q;) = 0 for i € {1, 2}. The twist is that there is now a fixed cost of production k > 0 that is the same for both firms. Assume first that both firms choose their quantities simultaneously. Model this as a normal-form game. b. Write down the firm's best-response function for k = 1000 and solve for a pure-strategy Nash...
Mathematical Question 2 (20pts) 2. Consider a Cournot competition model with two firms, 1 and 2. They produce identical goods in the same market with demand function P= 100-5Q with Q=91 +92- Furthermore, their production process generates pollution to the environment, which increases their cost of production. Their cost functions are given by C191,92) = 1091- +5Q and C291,92) = 15922 +45Q. a. (10pts) Calculate their equilibrium quantities, price, and profits for both firms. b. (5pts) Consider they collude and...
Most questions answered within 3 hours.
-
The energy required to remove an electron from a surface of a
solid element is called...
asked 1 minute ago -
How would you train your employees to avoid risks of using
mobile devices?
asked 24 minutes ago -
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 1 hour ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 2 hours ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 2 hours ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 4 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 4 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 5 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 6 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 6 hours ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 6 hours ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 7 hours ago