Finished part a, just need help
with part b
Finished part a, just need help with part b 5. MBI and Pear are the only...
5.* MBI and Pear are the only two producers of computers. MBI started producing earlier than Pear. MBI's costs of production are given by C1(/1) = y?. Pear's cost function is C2(y2) = The national demand for computers is y 106 - 105p (a) Calculate the Stackelberg equilibrium in which MBI is the leader in this market. Indicate output levels, market price, and the profits of each firm 5y2 (b) Suppose that both firms enter this market at the same...
Oligopoly The inverse demand curve for brimstone is given by p(Y) 116-3Y (with Y total quantity of brimstone, measured in the conventional units) and the cost function for any firm in the industry is given by TC(y)-8y (with y the output of the firm) a. Determine the industry output and price if the brimstone industry were perfectly competitive Suppose that two Cournot firms operated in the market (Firm 1 and Firm 2) Determine the reaction function of Firm 1. Do...
please answer all 10 questions
thanks
Suppose there are only two firms in the marker, firm A and firm B. They produce identical products. Firm A and firm B have the same constant marginal cost, MCA = MCB = ACA = ACB = 25. The market demand function is given by Q = 400 – 4P. a. If the firms practice under the Bertrand model, what will be the Nash equilibrium market price and output level? b. If these two...
3. We will examine the idea of oligopolies in this problem. The examples here will be based on the ideas of competition over quantity for identical goods (i.e. Cournot and Stackelberg) (a) (4 points) We begin with a 3 firm oligopoly and the assumption that each firm is using the minimal efficient scale, i.e. the lowest cost production method. Let market demand be P(Q) = 1200 5Q where Q 2 + 3. Assume each firm has a cost of C(qa)...
Suppose an industry has a duopoly structure. Duopolist 1 has a cost function given by: c1 (y1) = (y1)2 for y1 ≥ 0 . Duopolist 2 has a cost function given by: c2(y2 ) = 12y2 for y2 ≥ 0. Denoting total output produced in the industry by y = (y1 + y2), the inverse demand function for the good produced in the industry is given by: p = 100 – y Find the reaction function of each duopolist. Using...
1. Suppose there are only two firms in the marker, firm A and firm B. They produce identical products. Firm A and firm B have the same constant marginal cost, MCA MCB ACA ACB 25 The market demand function is given by 0-400 4P. e. Calculate the profits for each firm in the Cournot model. f. g. Is the monopoly outcome stable? If firm A operates under the monopoly outcome, h. Graph the monopoly outcome, cournot outcome and perfect competition...
Please Answer Part 2. The market for fabric has only one producer. Assume that daily market demand for fabric is y = 100,000 - 100p, where y denotes the quantity and p denotes the unit price. Also assume that producing y units of fabric costs 100y. 1. How many units of fabric should the producer produce and sell in order to maximize profits? Calculate the profit-maximizing price and the profit. 2. Now suppose that to produce one unit of fabric...
The OUTPUT is already answered BUT STILL NEED PROFITS FOR EACH
FIRM. please don’t forget to answer profits for part 1!!!
Two firms compete as a duopoly. The demand they face is P 100-3Q. The cost function for each firm is C(Q) = 4Q. Determine output, and profits for each firm in a Cournot oligopoly 2 If firms collude, determine output and profit for each firm. 3. If firm 1 cheats on the collusion in item 2, determine output and...
This problem set is partitioned into four sections. Section I examines price discrimination in the airline industry. Section II uses game theory to analyze output behavior of rivals. Section III uses game theory to examine output behavior of rivals for a multi-period game. Section I: Monopoly pricing 4. Firm X has a complete monopoly over the production of nutmeg. The following information is given: Marginal revenue = 1500 -20Q Marginal cost = 300 +10Q Where Q equals the output of...
1. Consumer’s utility function is: U (X,Y) = 10X + Y. Consumer’s income M is 40 euros, the price per unit of good X (i.e. Px ) is 5 euros and the price per unit of good Y (i.e. Py) is 1 euro. a) What is the marginal utility of good X (MUx) for the consumer? ( Answer: MUx = 10) b) What is the marginal utility of good Y (MUy) for the consumer? ( Answer: MUy = 1) c)...