Homework Answers
Add Answer to:
(2) Differentiated goods Rather than identical goods, now the two firms are producing differentiated goods, with...
There are 2 firms in a market producing differentiated products. The firms both have MC that...
There are 2 firms in a market producing differentiated products. The firms both have MC that is equal to 0 Firm 1 demand is q1(p1,p2) = 6-2p1 + p2 Firm 2 demand is q2(p1,p2) = 6-2p2 + p1 1. Firms compete in quantities- Cournot Competition. What are the inverse demand functions for firm 1 and 2? 2. Find and graph each firm’s best response functions. The quantities are strategic substitutes or complements? 3. Find the Nash equilibrium prices and quantities...
Suppose there are two firms in a market producing differentiated products. Both firms have MC=0. The...
Suppose there are two firms in a market producing differentiated products. Both firms have MC=0. The demand for firm 1 and 2’s products are given by: q1(p1,p2) = 5 - 2p1 + p2 q2(p1,p2) = 5 - 2p2 + p1 a. First, suppose that the two firms compete in prices (i.e. Bertrand). Compute and graph each firm’s best response functions. What is the sign of the slope of the firms’ best-response functions? Are prices strategic substitutes or complements? b. Solve...
Two firms produce closely-related products and have marginal costs MC1=10 and MC2=20. The market supplied by...
Two firms produce closely-related products and have marginal
costs MC1=10 and MC2=20. The market supplied by firm 1 has demand
Q1=100-2p1+p2, while 2's market has demand Q2=100+p1-2p2. The two
firms are engaged in Bertrand price competition.
Two firms produce closely-related products, and have marginal costs MC1-10 and MC2-20. The market supplied by firm 1 has demand Q1 = 100-2p1+P2, while 2's market has demand Q2=100+p1- 2p2. The two firms are engaged in Bertrand price competition. 3(a)What is the intercept of...
7. Two firms compete in a market by selling differentiated products. The demand equations are given...
7. Two firms compete in a market by selling differentiated products. The demand equations are given by the following equations: P2 qı = 75 – Pi + 2 P1 92 = 75 – P2 + 2 assume that each firm has a marginal cost (and average costs) of O. a. Solve for firm l's best response function. b. Solve for the equilibrium price and quantity. C. Would firm 1 still be able to compete in the market if their marginal...
4. Consider about a duopoly case: two firms compete by choosing prices for two differentiated goods....
4. Consider about a duopoly case: two firms compete by choosing prices for two differentiated goods. Their demand functions are Q1 = 20-P1+ P2 and Q2-20 + P1-P2, where Pi and P2 are the prices charged by each firm, respectively, and Qi and Q2 are the resulting demands. Fixed costs and marginal costs are both zero. (a) Suppose the two firms set their prices at the same time. Find the resulting Na equilibrium. What price will each firm charge, how...
2 Two firms compete in a market by selling differentiated products. The demand equations are given...
2 Two firms compete in a market by selling differentiated products. The demand equations are given by the following equations: P2 91 = 75 - Pi + P1 92 = 75 - P2 + 2 assume that each firm has a marginal cost (and average costs) of o. a. What market model do we use if each firm competes by simultaneously choosing price? b. Are the two goods substitutes? C. Solve for firm 1's best response function. d. Solve for...
Two firms produce differentiated products with demand curves p1 = a – q1 – bq2 and...
Two firms produce differentiated products with demand curves p1 = a – q1 – bq2 and p2 = a – q2 – bq1. They both face constant average and marginal cost c and their profit functions are profit = (p1 – c)q1 and profit = (p2 — c)q2, respectively. Solve the Bertrand game. Hint: You need to solve the system of equations p1 = a − q1 − bq2 and p2 = a − q2 − bq1 for q1 and...
91 = Two firms compete in a market by selling differentiated products. The demand equations are...
91 = Two firms compete in a market by selling differentiated products. The demand equations are given by the following equations: P2 75 – P1 + 75 – P2 + 2. assume that each firm has a marginal cost (and average costs) of 0. a. What market model do we use if each firm competes by simultaneously choosing price? P 92 = b. Are the two goods substitutes? C. Solve for firm 1's best response function. d. Solve for the...
Mathematical Question 3 (30pts) 3. Consider two firms are performing Cournot price competition in two differentiated...
Mathematical Question 3 (30pts) 3. Consider two firms are performing Cournot price competition in two differentiated goods markets. Firm 1 produces goods 1, and firm 2 produces goods 2, and two market demand functions are given by 91 (P1,P2) = 12-2p1 + P2 and 921,P2) = 12-2p2 + P 1. Furthermore, assume that the two firms have the same cost function such that fixed cost is $20 and variable cost is zero. a. (10pts) Calculate the equilibrium prices, quantities and...
Two firms produce closely-related products, and have marginal costs MC1=10 and MC2=20. The market supplied by...
Two firms produce closely-related products, and have marginal costs MC1=10 and MC2=20. The market supplied by firm 1 has demand Q1=100-2p1+p2, while 2's market has demand Q2=100+p1-2p2. The two firms are engaged in Bertrand price competition. 3(a)What is the intercept of firm 1's price reaction curve? (One digit after the decimal point only) 3(b) What is the slope of firm 1's price reaction curve? (One digit after the decimal point only) 3(c) What is the intercept of firm 2's price...
Two firms produce closely-related products and have marginal
costs MC1=10 and MC2=20. The market supplied by firm 1 has demand
Q1=100-2p1+p2, while 2's market has demand Q2=100+p1-2p2. The two
firms are engaged in Bertrand price competition.
Two firms produce closely-related products, and have marginal costs MC1-10 and MC2-20. The market supplied by firm 1 has demand Q1 = 100-2p1+P2, while 2's market has demand Q2=100+p1- 2p2. The two firms are engaged in Bertrand price competition. 3(a)What is the intercept of...
7. Two firms compete in a market by selling differentiated products. The demand equations are given by the following equations: P2 qı = 75 – Pi + 2 P1 92 = 75 – P2 + 2 assume that each firm has a marginal cost (and average costs) of O. a. Solve for firm l's best response function. b. Solve for the equilibrium price and quantity. C. Would firm 1 still be able to compete in the market if their marginal...
4. Consider about a duopoly case: two firms compete by choosing prices for two differentiated goods. Their demand functions are Q1 = 20-P1+ P2 and Q2-20 + P1-P2, where Pi and P2 are the prices charged by each firm, respectively, and Qi and Q2 are the resulting demands. Fixed costs and marginal costs are both zero. (a) Suppose the two firms set their prices at the same time. Find the resulting Na equilibrium. What price will each firm charge, how...
2 Two firms compete in a market by selling differentiated products. The demand equations are given by the following equations: P2 91 = 75 - Pi + P1 92 = 75 - P2 + 2 assume that each firm has a marginal cost (and average costs) of o. a. What market model do we use if each firm competes by simultaneously choosing price? b. Are the two goods substitutes? C. Solve for firm 1's best response function. d. Solve for...
91 = Two firms compete in a market by selling differentiated products. The demand equations are given by the following equations: P2 75 – P1 + 75 – P2 + 2. assume that each firm has a marginal cost (and average costs) of 0. a. What market model do we use if each firm competes by simultaneously choosing price? P 92 = b. Are the two goods substitutes? C. Solve for firm 1's best response function. d. Solve for the...
Mathematical Question 3 (30pts) 3. Consider two firms are performing Cournot price competition in two differentiated goods markets. Firm 1 produces goods 1, and firm 2 produces goods 2, and two market demand functions are given by 91 (P1,P2) = 12-2p1 + P2 and 921,P2) = 12-2p2 + P 1. Furthermore, assume that the two firms have the same cost function such that fixed cost is $20 and variable cost is zero. a. (10pts) Calculate the equilibrium prices, quantities and...
Most questions answered within 3 hours.
-
1. why is toluene a stronger nucleophile than benzene?
2.why is phenol a stronger nucleophile than...
asked 9 minutes ago -
4. How can you solve for the density of the liquid from the
slope? Please show...
asked 9 minutes ago -
when 2053 j of heat is added to 46.3 g of hexane C6H14 the
temperature increases...
asked 33 minutes ago -
I need new and unique answers, please. (Use your own words,
don't copy and paste), Please...
asked 36 minutes ago -
MCL 445.111 et seq. deals with Home Solicitation Sales.
MCL stands for Michigan Compiled Laws which...
asked 27 minutes ago -
Which of the following items may not create an NOL?
a.
sole proprietorship loss
b.
personal...
asked 32 minutes ago -
A hypothetical solution forms between a solid and a liquid. The
values of the thermodynamic quantities...
asked 30 minutes ago -
a)An ideal heat pump is being considered for use in heating an
environment with a temperature...
asked 33 minutes ago -
.
Convert the following pairs of voltage and current waveforms to
phasor form. Each pair of...
asked 34 minutes ago -
A 6.5 cm diameter ball has a terminal speed of 22 m/s. What is
the ball's...
asked 48 minutes ago -
Name two areas of the human body with the highest concentration
of lymph nodes and speculate...
asked 52 minutes ago -
Angel Corporation has $10,000,000 of
8.0% 25 year bonds dated May 1, 2018 with interest payable...
asked 1 hour ago