Questions 10-12 rely on the following prompt: Firm 1 and Firm 2 compete as Cournot duopolists,...
Questions 10-12 rely on the following prompt: Firm 1 and Firm 2 compete as Cournot duopolists, producing q1 and q2 units of output respectively, such that market output Q=q1+q2. They face market inverse demand of P = 400 − 2Q. Firm 1’s Total cost is given by TC1=2q1^2. Firm 2’s by TC2=2q2^2.
10. What is Firm 1’s equilibrium profit maximizing output level, q1*?
11. What is market output in the Cournot equilibrium for this market (so, what is the value of Q*=q1*+q2*)?
12. At what price will output be sold in this market in equilibrium?
Homework Answers
Add Answer to:
Questions 10-12 rely on the following prompt: Firm 1 and
Firm 2 compete as Cournot duopolists,...
of output respectively, suc. Firm 1 and Firm 2 compete as Cournot duopolists, producing q1 and...
of output respectively, suc. Firm 1 and Firm 2 compete as Cournot duopolists, producing q1 and q units that market output Q = q1 + q2. They face market inverse demand of P-400-20. Firm l's Total cost is given by TG, = 2q3. Finn 2's by TC2-2 . 10, what is Firm l's equilibrium profit maximizing output level, qǐ? 11. What is market output in the Cournot equilibrium for this market (so, what is the value of Q. = qi...
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 = ?
Let market demand for a Cournot duopoly be represented by P=4500-(2Q1+2Q2), while total costs for firm...
Let market demand for a Cournot duopoly be represented by P=4500-(2Q1+2Q2), while total costs for firm 1 and 2 are respectively, TC1(Q1)=12Q1 2 and TC2(Q2)=12Q2 2 . Calculate equilibrium output, price, and profit of each firm. 10 pts
Cournot vs. Stackelberg Oligopoly Suppose the inverse demand function and the cost functions for two duopolists...
Cournot vs. Stackelberg Oligopoly Suppose the inverse demand function and the cost functions for two duopolists are given by: P = 100 – (Q1 + Q2) C1(Q1) = 2Q1 C2(Q2) = 2Q2 a. Cournot: Assume two Cournot duopolists. i. What is firm 1’s Quantity and Profit? R1 = (100-Q1-Q2) * Q1 R1 = 100Q1 - Q12 - Q2Q1 MR1 = 100 - 2Q1 - Q2 C1(Q1) = 2Q1 MC1 = 2 MR1 = MC1 ii. What is firm 2’s Quantity...
Questions 16-17 rely on the following information. Firms H and I Cournot compete in a market...
Questions 16-17 rely on the following information. Firms H and I Cournot compete in a market with inverse demand given by P 160-Q, where Q is the sum of Firm H and Firm I's output, Q = QH + Q1. Firn H's costs are given by TCH = 100H, and l's are given by TC,-10Q1. 16. What will market output, Q, be in equilibrium when both firms are maximizing profit? 17. What price will the firms charge when maximizing profits...
Questions 18-19 refer to the following: There 2 firms in a Cournot Oligopoly market for cell...
Questions 18-19 refer to the following: There 2 firms in a Cournot Oligopoly market for cell phone service in a Texas county. The market inverse demand function and the total cost functions each of the two firms are as follows: P = 50 – 0.25(Q1 + Q2) (market inverse demand) TC1 = 5 + 10Q1 (total cost function for firm 1) TC2 = 2 + 12Q2 (total cost function for firm 2) 18. Which of the following represents the equilibrium...
4. (12 MARKS -6 FOR EACH PART) Two firms produce homogeneous products and compete as Cournot...
4. (12 MARKS -6 FOR EACH PART) Two firms produce homogeneous products and compete as Cournot duopolists. Inverse market demand is given by P 30 Q. Firm 1 has a marginal cost of 5 per unit. Firm 2's marginal cost is c2<5. (a) Suppose that c2 falls. What will happen to the Cournot equilibriumi) price, (ii) consumer surplus and total surplus, and (ii) the HHI? Explain your answer. (b) How does this example relate to criticisms of the use of...
EC202-5-FY 10 9Answer both parts of this question. (a) Firm A and Firm B produce a homogenous good and are Cournot duopolists. The firms face an inverse market demand curve given by P 10-Q. where...
EC202-5-FY 10 9Answer both parts of this question. (a) Firm A and Firm B produce a homogenous good and are Cournot duopolists. The firms face an inverse market demand curve given by P 10-Q. where P is the market price and Q is the market quantity demanded. The marginal and average cost of each firm is 4 i. 10 marks] Show that if the firms compete as Cournot duopolists that the total in- dustry output is 4 and that if...
Answer the following question. Please show all your working/explanation. Three firms compete a la Cournot (compete...
Answer the following question. Please show all your working/explanation. Three firms compete a la Cournot (compete in a Cournot Competition). Each firm has constant marginal cost c. Inverse demand curve is 1 - Q, where Q is the total quantity. Firm 1 moves first, and chooses q1 . After firm 1 chooses q1, firms 2 and 3 move second and simultaneously choose q2 and q3 . Find the equilibrium quantities q1, q2, q3 .
Now consider a typical Cournot duopoly situation such that the market is being served by two...
Now consider a typical Cournot duopoly situation such that the market is being served by two firms (Firm 1 and Firm 2) that simultaneously decide on the level of output to sell in the market, while producing an identical product. The total output of the industry is Q = q1 + q2, where q1 and q2 are the output of Firm 1 and 2, respectively. Each firm has a symmetric cost function: C(q1) = 12 q1 and C(q2) = 12...
of output respectively, suc. Firm 1 and Firm 2 compete as Cournot duopolists, producing q1 and q units that market output Q = q1 + q2. They face market inverse demand of P-400-20. Firm l's Total cost is given by TG, = 2q3. Finn 2's by TC2-2 . 10, what is Firm l's equilibrium profit maximizing output level, qǐ? 11. What is market output in the Cournot equilibrium for this market (so, what is the value of Q. = qi...
Questions 16-17 rely on the following information. Firms H and I Cournot compete in a market with inverse demand given by P 160-Q, where Q is the sum of Firm H and Firm I's output, Q = QH + Q1. Firn H's costs are given by TCH = 100H, and l's are given by TC,-10Q1. 16. What will market output, Q, be in equilibrium when both firms are maximizing profit? 17. What price will the firms charge when maximizing profits...
4. (12 MARKS -6 FOR EACH PART) Two firms produce homogeneous products and compete as Cournot duopolists. Inverse market demand is given by P 30 Q. Firm 1 has a marginal cost of 5 per unit. Firm 2's marginal cost is c2<5. (a) Suppose that c2 falls. What will happen to the Cournot equilibriumi) price, (ii) consumer surplus and total surplus, and (ii) the HHI? Explain your answer. (b) How does this example relate to criticisms of the use of...
EC202-5-FY 10 9Answer both parts of this question. (a) Firm A and Firm B produce a homogenous good and are Cournot duopolists. The firms face an inverse market demand curve given by P 10-Q. where P is the market price and Q is the market quantity demanded. The marginal and average cost of each firm is 4 i. 10 marks] Show that if the firms compete as Cournot duopolists that the total in- dustry output is 4 and that if...
Most questions answered within 3 hours.
-
draw product of cyclohex-2-en-1-one, Sodium methoxide and
hydronium workup
asked 3 minutes ago -
In a certain state, about 65% of drivers who are arrested for
driving while intoxicated (DWI)...
asked 4 minutes ago -
A single NEC SX-9 vector processor unit (VPU) has a peak
arithmetic
performance of 102.4 GFs/s....
asked 22 minutes ago -
. Determine the hourly multiplication factors
such that the total daily water consumption will equal 15,000...
asked 22 minutes ago -
A budgeting Web site reported that 35% of U.S. households have
withdrawn money from a 401(k)...
asked 21 minutes ago -
In this assignment, you will write a minimum two-page paper that
explains the treatment of internal...
asked 26 minutes ago -
Direct marketing is also referred to as Question 50 options: 1)
one-to-one marketing. 2) business-customer marketing....
asked 29 minutes ago -
INK Ltd is grocery retailer with 103 shops around South
Australia and Tasmania. The company has...
asked 34 minutes ago -
HOW BEER IS MADE
The beer making process is an art. It takes time, patience and...
asked 35 minutes ago -
What two methods could be used to purify the dimethyl
fumarate?
Based on the 12 Principles...
asked 44 minutes ago -
Reflect upon the readings and videos as well as our Media Monday
discussion. Integrating concepts from...
asked 49 minutes ago -
1. A cylindrical capacitor with A = 0.01, B = 0.1 and a length
of 5...
asked 56 minutes ago