Answer : d. P= 28
Question 33 You are the manager in a duopoly setting with inverse demand equal: P =...
Duopoly, quantity-setting firms face the market demand p = 270 - Q. Each firm has a marginal cost of $30 per unit. What is the Cournot equilibrium? The Cournot equilibrium quantities for Firm 1 (91) and Firm 2 (92) are 91 = units and 92 = units. (Enter numeric responses using real numbers rounded to two decimal places.)
ECON M/C is this correct?
A duopoly faces the inverse demand curve p = 10 – 4, where q is the sum of firm 1's output 91 and firm 2's output (2 (q = 41 +92). Firm 1's total cost function is given by Ci(91) 2q1 and firm 2's total cost function is given by C2(92) 8q2. Suppose firms engage in price competition (Bertrand competition). Which of the following statements is correct? Select one: a. Bertrand equilibrium of this duopoly...
In Cournot duopoly , the inverse demand function is P=150-Q Firm 1 and Firm costs are C1=1000+12q1 and C2=2000+6q2 What is the profit maximization , best reaction function to find Nash equilibrium Price
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 = ?
. A Cournot duopoly with homogeneous products has an inverse demand curve P-400- 5(OA+QB) and costs are CA(QA) 30QA and Ce(Qa)- 40QB. a. Determine the reaction function for each firm. b. Calculate each firm's equilibrium output and the market's equilibrium price. c. Calculate the profit each firm carns in equilibrium.
(16 points) Cournot Duopoly. Market demand is p(Q) = 50 – 4Q, where Q = 4+ 42. Firm 1's cost function is C (91) = 0, and firm 2 has a cost function C2(92) = 1092- The two firms engage in Cournot competition; they simultaneously choose a quantity and the price adjusts so that the market clears. (a) Formally write firm 1's profit maximization problem (b) Find firm l's best response function. (c) Take as given that firm 2's best...
) TUU 100 2. The inverse market demand in a homogeneous-product Cournot duopoly is P=20 30 +) and costs are C(q) = 26Q, and C2(Q) = 32Q2. (LOI, LO3) a. Determine the reaction function for each firm. b. Calculate each firm's equilibrium output. c. Calculate the equilibrium market price. d. Calculate the profit each firm earns in equilibrium. .
please answer the question.
Exercise 59.1 (Cournot's duopoly game with linear inverse demand and a quadratic cost function) Find the Nash equilibrium of Cournot's game when there are two firms, the inverse demand function is given by P(Q) = a-Q if Q<a, = o if Q> a, and the cost function of each firm i is C;(q;) = qť.
Duopoly quantity-setting firms face the market demand p=210-Q. Each firm has a marginal cost of $15 per unit. What is the Cournot equilibrium? The Cournot Equilibrium quantities for Firm 1 (q1) and Firm 2 (q2) are: q1= __ units and q2 =__ units . (Enter numeric responses using real numbers rounded to two decimal places.) The Cournot equilibrium price is p=$__ (two decimal places)
The inverse demand in a Cournot duopoly is P = a - b (Q1 + Q2), and costs are C1(Q1) = c1Q1 and C2(Q2) = c2Q2. The government has imposed a per unit tax of $t on each unit sold by each firm. The equilibrium price of each firm is the same as a situation where: a. each firm’s demand increases by t. b. each firm’s demand decreases by t. c. each firm’s marginal cost increases by t. d. each...