Homework Answers
Correct Answer
A
Working note:
P = 100 – 2*(q1+q2)
P = 100 – 2*(q1 + 22-.5q1)
P = 100 – 2q1 -44 +q1
P = 56-q1
Add Answer to:
3. Two firms that are engaged in Stackelberg competition face the market inverse demand curve P-100-2Q,...
Consider a market with Stackelberg competition. The inverse demand curve is P = a−b Q, with...
Consider a market with Stackelberg competition. The inverse demand curve is P = a−b Q, with a=13 and b=3. Firm 1 is the leader and produces at constant marginal costs equal to zero. Firm 2 is the follower and has the cost function: C(q) = cq^2, with c=5. (Note the square on q). What is the equilibrium quantity of firm 1?
Two firms in an industry engaged in Bertrand competition. The industry inverse demand function is p...
Two firms in an industry engaged in Bertrand competition. The industry inverse demand function is p = 40 - 2Q, and marginal cost is MC = 10 for both firms. No firm faces capacity constraints. Find the BertrandNash equilibrium (prices, quantities, profits consumer surplus, total surplus, herfindahl index and lerner index)
Two firms compete in a market to sell a homogeneous product with inverse demand function. P...
Two firms compete in a market to sell a homogeneous product with inverse demand function. P = 500 – 2Q. Each firm produces at a constant marginal cost of $100 and has no fixed costs. Use this information to compare the output levels and profits in settings characterized by Cournot, Stackelberg, Bertrand, and collusive behavior. Show the detail of your work and summarize your results in a table. Outputs Profits il= Cournot 12= Stackelberg Ql= Q2= Q1= Q2= Ql= Q2=...
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 = ?
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...
Suppose the inverse market demand curve for widgets is given by p = 12 – 2Q,...
Suppose the inverse market demand curve for widgets is given by p = 12 – 2Q, and the market is characterized by Stackelberg duopoly. Both firms have marginal costs of 2 and fixed costs of 0. What is the equilibrium price in the market? Your answer should be rounded to the first decimal place (e.g. 123.4).
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)...
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.
Two firms compete in a market to sell a homogeneous product with inverse demand function. P = 500 – 2Q. Each firm produces at a constant marginal cost of $100 and has no fixed costs. Use this information to compare the output levels and profits in settings characterized by Cournot, Stackelberg, Bertrand, and collusive behavior. Show the detail of your work and summarize your results in a table. Outputs Profits il= Cournot 12= Stackelberg Ql= Q2= Q1= Q2= Ql= Q2=...
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)...
Most questions answered within 3 hours.
-
Write a program to score the paper-rock-scissor game. Each of
two users types in either P,R...
asked 59 seconds ago -
Calculate the equillibrium constent K for a redox reaction that
has E°cell = -.98 V at...
asked 13 minutes ago -
A concave spherical mirror has a radius of curvature of
magnitude 19.6 cm.
(a) Find the...
asked 14 minutes ago -
3. draw a diagram of the magnetic field:
a. around a long straight wire with a...
asked 13 minutes ago -
If you titrated 30.0 mL of 0.1 M HCl with 0.1 M NaOH, indicate
the approximate...
asked 21 minutes ago -
NADH passes electrons into the electron transport chain. List
the carriers that would receive the electrons,...
asked 30 minutes ago -
A cylindrical cable with a resistivity of 1.6x10-8 Ω·m and cross
sectional area of 3x10-5 m^2...
asked 29 minutes ago -
True or False.
A consumer with convex preferences who is indifferent between
the bundles (5,2) and...
asked 33 minutes ago -
A diamond's index of refraction for red light, 656 nm, is 2.410,
while that for blue...
asked 46 minutes ago -
Compare HPLC, SPE, and GC. Identify the differences, the
advantages, and the weaknesses of each method.
asked 47 minutes ago -
Characteristic x-rays emitted by potassium have a wavelength of
0.374 nm. What is the energy of...
asked 50 minutes ago -
there is a function to create two random numbers between 1 and
25 and a function...
asked 1 hour ago