15. value: 5.00 points The market demand curve for a pair of duopolists is given as...
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....
The market demand curve for a pair of duopolists is given as P=38- Q where Q= Q4 + Q2 The constant per unit marginal cost is 14 for firm 1 and 17 for firm 2. Find the equilibrium price, quantity and profit for each firm in both the Cournot model and Bertrand model. (Round your answers to 2 decimal places (e.g., 32.16). Enter zero whenever required.) a) Cournot Equilibrium Price: Equilibrium Quantity for Firm 1: Equilibrium Quantity for Firm 2:...
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...
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
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...
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...
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...
2. Suppose the market demand curve is P = 40 − 3Q and all firms in the industry face M C = 4 and have no fixed costs. For each of the following situations, calculate the five items: Market Price , Quantity per firm ,Profits per firm ,Consumer Surplus ,Deadweight Loss (a) Uniform pricing monopolist P = Q = π = CS = DWL = (b) Cournot Duopoly P= Q1 = Q2 = π 1 = π2...
= 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,...