The market demand curve for a pair of duopolists is given as P=38- Q where Q=...
The market demand curve for a pair of duopolists is given as P=56- 2Q where Q=Q4 + Q2. The constant per unit marginal cost is O for firm 1 and 2 for firm 2. Both firms also have no fixed costs. Find the equilibrium price, quantity and profit for each firm if firm 1 is the Stackelberg leader and firm 2 a follower. Now re-do the computations assuming that firm 2 is the leader and firm 1 the follower. (Round...
The market demand curve for a pair of duopolists is given as P=100- Q where Q= Q1+ Q2. The constant per unit marginal cost is 0 for firm 1 and c for firm 2 where c is some number. Find the equilibrium price, quantity and profit for each firm in the Bertrand model as a function of c a. Equilibrium price equals P=0. Equilibrium quantity is Q1=Q2=10 with both earning Π1=Π2=0. Which one is correct? ---C= 0 OR C>0 b....
15. value: 5.00 points The market demand curve for a pair of duopolists is given as P=100- Q where Q= Q4 + Q2. The constant per unit marginal cost is 0 for firm 1 and c for firm 2 where c is some number. Find the equilibrium price, quantity and profit for each firm in the Bertrand model as a function of c a. Equilibrium price equals P=0. Equilibrium quantity is Q4=Q2=10 with both earning (4=N2=0 Answer: (Click to select)...
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...
Fill in the Blanks Stackelberg Leader-Follower duopolists face a market demand curve given by P = 90 - Q where Q is total market demand. Each firm can produce output at a constant marginal cost of 30 per unit. The equilibrium price or the total market is and equilibrium quantity is
A homogeneous product duopoly faces a market demand function given by p = 300 - 3Q,where Q = q1 + q2. Both firms have constant marginal cost MC = 100. (part 2) 1a. What is the Bertrand equilibrium price and quantity in this market? 1b. Suppose Firm 1 is the Stackelberg leader, what is the equilibrium price in this market if Firm 2 plays the follower in this duopoly market? What is the equilibrium quantity? How much does each firm...
For questions 14: Market demand for widgets is Q = 100 - p. Whether there is just one firm 10- selling widgets or many firms selling widgets, the marginal cost and average cost is 10. 10 2 Assume there is one firm selling widgets. What is the equilibrium price (p) and quantity sold (Q)? 2 Assume there are two firms selling widgets acting as Cournot duopolists (Firm 1 and Firm 2). What is the quantity sold for each firm? 122...
Please be descriptive. The market demand curve in a commodity chemical industry is given by Q 600 - 3P, where Q is the quantity demanded per month and P is the market price in dollars. Firms in this industry supply quantities every month, and the resulting market price occurs at the point at which the quantity demanded equals the total quantity supplied. Suppose there are two firms in this industry, Firm 1 and Firm 2. Each firm has an identical...
2. (Cournot Model) Consider a Cournot duopoly. The market demand is p=160 - q2. Firm 1's marginal cost is 10, and firm 2's marginal cost is also 10. There are no fixed costs. A. Derive each firm's best response function B. What is the Nash equilibrium of this model? Find the equilibrium market price. C. Find the equilibrium profit for each firm D. Find the equilibrium consumer surplus in this market. 3. (Bertrand Model) Consider a Bertrand duopoly. The market...
Suppose you have duopolists facing the following demand curve: P = 100-Q. Also, the duopolists both have marginal costs equal to 0. What is the reaction curve for firm 1? A. Q1(Q2) = 50 – 0.5Q1 B. Q2(Q1) = 50 – 0.5Q1 C. Q1(Q2) = 50 – 0.5Q2 D. Q2(Q1) = 50 – 0.5Q2