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3. Cournot model: Quantity competition in simultaneous move homogeneous product duopoly explain in words. The market...
5. Bertrand model: Price competition in simultaneous move homogeneous product duopoly—explain in words. Consider the brick...
5. Bertrand model: Price competition in simultaneous move homogeneous product duopoly—explain in words. Consider the brick producers again. This time, each firm simultaneously and independently picks the price. Since the product is homogeneous, the consumer buys from the producer offering at a cheaper price. The market demand curve faced by the two firms is P=1 - 50000 (x+y), and costs are C1(x) = 0.02x and C (y) = 0.02y, where firm 1 produces x units and firm 2 produces y...
1. Consider the following asymmetric version of the Cournot duopoly model. Two firms compete by simultaneously...
1. Consider the following asymmetric version of the Cournot duopoly model. Two firms compete by simultaneously choosing the quantities (q, and q2) they produce. Their products are homogeneous, and market demand is given by p- 260-2Q, where Q-q +q2. Firm 1 has a cost advantage; Firm 1 produces at zero cost, while Firm 2 produces at a constant average cost of 40. (The difference in costs is what makes this an asymmetric game.) a. Derive both firms' profit functions, as...
5. Consider a version of the Cournot duopoly game, which will be thoroughly analyzed in Chapter...
5. Consider a version of the Cournot duopoly game, which will be thoroughly analyzed in Chapter 10. Two firms (1 and 2) compete in a homogeneous goods market, where the firms produce exactly the same good. The firms simultaneously and independently select quantities to produce. The quantity selected by firm i is denoted q, and must be greater than or equal to zero, for i - 1,2. The market price is given by p-2 - q1 -q2. For simplicity, as...
3. Cournot competition: The inverse demand for a homogeneous good is given by p(Q) = 100...
3. Cournot competition: The inverse demand for a homogeneous good is given by p(Q) = 100 - Q if Q< 100 and p(Q) = 0 if Q > 100, where p is the price in the market and Q > 0 is the total quantity supplied in the market. There are two firms, labeled 1 and 2, each of which produce the good at a constant marginal cost of 10 per unit. There are no fixed costs. Denoting the output...
A homogeneous products duopoly faces a market demand function given by P a - Q, where...
A homogeneous products duopoly faces a market demand function given by P a - Q, where QQ Q2 and a>300. Both firms have constant marginal costs MC-100. There are no fixed costs. a) What is firm 1's optimal quantity given that firm 2 produces an output of 50 units per year? And what is firm's 1 quantity if firm 2 produces 20 units? [4 marks] b) Derive the equation of each firm's reaction function and provide a graphical explanation to...
can someone help me with question 9? QUESTION 9 A homogeneous products duopoly faces a market...
can someone help me with question 9?
QUESTION 9 A homogeneous products duopoly faces a market demand function given by P-a-Q, where Q Q1 + Q2 and a-300. Both firms have constant marginal costs MC-100. There are no fixed costs a) What is firm 1's optimal quantity given that firm 2 produces an output of 50 units per year? And what is frm's 1 quantity if firm 2 produces 20 units? 4 marks) b) Derive the equation of each firm's...
6. Price competition in simultaneous move differentiated product duopoly: There are only two gourmet food restaurants...
6. Price competition in simultaneous move differentiated product duopoly: There are only two gourmet food restaurants in a town. Their menus are not identical, but not totally different either. The price for each entree in a restaurant is the same. The restaurants pick their prices and sell according to their demand. The demand curve faced by restaurant 1 is given by: 100 - 4P + 2p2 and by restaurant 2 is given by: y = 100 - 4p2 + 2p....
In the market of cournot competition, the aggregate market demand is P 100 4Q a. There...
In the market of cournot competition, the aggregate market demand is P 100 4Q a. There exists two firms in the market, with identical production technology, i.e. mci = m2-20. Calculate the cournot equilibrium in this case. Also, draw the best response functions for firm 1 and firm 2 in the((2) plane b. There exists two firms in the market, with different production technology, i.e. mci = 10 and m2-30. Calculate the cournot equilibrium in this case. Also, draw the...
(16 points) Cournot Duopoly. Market demand is p(Q) = 50 – 4Q, where Q = 4+...
(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...
6. Price competition in simultaneous move differentiated product duopoly: There are only two gourmet food restaurants i...
6. Price competition in simultaneous move differentiated product duopoly: There are only two gourmet food restaurants in a town. Their menus are not identical, but not totally different either. The price for each entree in a restaurant is the same. The restaurants pick their prices and sell according to their demand. The demand curve faced by restaurant 1 is given by: = 100 – 4p1 + 2p2 and by restaurant 2 is given by: y= 100 – 4p2 + 2p1....
5. Bertrand model: Price competition in simultaneous move homogeneous product duopoly—explain in words. Consider the brick producers again. This time, each firm simultaneously and independently picks the price. Since the product is homogeneous, the consumer buys from the producer offering at a cheaper price. The market demand curve faced by the two firms is P=1 - 50000 (x+y), and costs are C1(x) = 0.02x and C (y) = 0.02y, where firm 1 produces x units and firm 2 produces y...
1. Consider the following asymmetric version of the Cournot duopoly model. Two firms compete by simultaneously choosing the quantities (q, and q2) they produce. Their products are homogeneous, and market demand is given by p- 260-2Q, where Q-q +q2. Firm 1 has a cost advantage; Firm 1 produces at zero cost, while Firm 2 produces at a constant average cost of 40. (The difference in costs is what makes this an asymmetric game.) a. Derive both firms' profit functions, as...
5. Consider a version of the Cournot duopoly game, which will be thoroughly analyzed in Chapter 10. Two firms (1 and 2) compete in a homogeneous goods market, where the firms produce exactly the same good. The firms simultaneously and independently select quantities to produce. The quantity selected by firm i is denoted q, and must be greater than or equal to zero, for i - 1,2. The market price is given by p-2 - q1 -q2. For simplicity, as...
3. Cournot competition: The inverse demand for a homogeneous good is given by p(Q) = 100 - Q if Q< 100 and p(Q) = 0 if Q > 100, where p is the price in the market and Q > 0 is the total quantity supplied in the market. There are two firms, labeled 1 and 2, each of which produce the good at a constant marginal cost of 10 per unit. There are no fixed costs. Denoting the output...
A homogeneous products duopoly faces a market demand function given by P a - Q, where QQ Q2 and a>300. Both firms have constant marginal costs MC-100. There are no fixed costs. a) What is firm 1's optimal quantity given that firm 2 produces an output of 50 units per year? And what is firm's 1 quantity if firm 2 produces 20 units? [4 marks] b) Derive the equation of each firm's reaction function and provide a graphical explanation to...
can someone help me with question 9?
QUESTION 9 A homogeneous products duopoly faces a market demand function given by P-a-Q, where Q Q1 + Q2 and a-300. Both firms have constant marginal costs MC-100. There are no fixed costs a) What is firm 1's optimal quantity given that firm 2 produces an output of 50 units per year? And what is frm's 1 quantity if firm 2 produces 20 units? 4 marks) b) Derive the equation of each firm's...
6. Price competition in simultaneous move differentiated product duopoly: There are only two gourmet food restaurants in a town. Their menus are not identical, but not totally different either. The price for each entree in a restaurant is the same. The restaurants pick their prices and sell according to their demand. The demand curve faced by restaurant 1 is given by: 100 - 4P + 2p2 and by restaurant 2 is given by: y = 100 - 4p2 + 2p....
In the market of cournot competition, the aggregate market demand is P 100 4Q a. There exists two firms in the market, with identical production technology, i.e. mci = m2-20. Calculate the cournot equilibrium in this case. Also, draw the best response functions for firm 1 and firm 2 in the((2) plane b. There exists two firms in the market, with different production technology, i.e. mci = 10 and m2-30. Calculate the cournot equilibrium in this case. Also, draw the...
(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...
6. Price competition in simultaneous move differentiated product duopoly: There are only two gourmet food restaurants in a town. Their menus are not identical, but not totally different either. The price for each entree in a restaurant is the same. The restaurants pick their prices and sell according to their demand. The demand curve faced by restaurant 1 is given by: = 100 – 4p1 + 2p2 and by restaurant 2 is given by: y= 100 – 4p2 + 2p1....
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