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An industry has two firms. The demand curve for the industry's output is...
ECON M/C An industry has two firms. The demand curve for the industry's output is given...
ECON M/C
An industry has two firms. The demand curve for the industry's output is given by p = 370 – 24, where q is the total industry output. Each firm has a constant marginal cost equal to 10. Suppose that one firm is the Stackelberg leader and the other firm is the Stackelberg follower. The leader will choose quantity Select one: a. 80 b. 120 O C. 150 O d. 90 O e. None of the above.
[Cournot competition with N firms] There are three identical firms in the industry. The inverse demand...
[Cournot competition with N firms] There are three identical firms in the industry. The inverse demand function is p(Q-1-Q, where Q = q1 +92+93 denotes aggregate output. To facilitate your calculations, assume that the marginal cost for all firms is zero, c 0· 2. (a) Find the best response function for each firm. Interpret b) Compute the Cournot equilibrium. (c) Assume that two of the three firms merge (transforming the industry into a duopoly). Show that the profit of the...
ECON M?C There are two firms in an industry. The industry demand curve is given by...
ECON M?C
There are two firms in an industry. The industry demand curve is given by p = 60 - q. Each firm has one manufacturing plant and each firm i has a cost function C(q) = 97, where qi is the output of firm i. The two firms form a cartel and arrange to split total industry profits equally. Under this cartel arrangement, they will maximize joint profits if Select one: O a. each firm produces 15 units in...
Consider two firms facing the demand curve P=90-SQ. 17 where Q Q1+02. The firms' cost functions...
Consider two firms facing the demand curve P=90-SQ. 17 where Q Q1+02. The firms' cost functions are С, (A) 10 +sal 13 12 and C2(92)#5+10Q2. Suppose that both firms have entered the industry. What is the joint profit-maximizing level of output? How much will each firm produce? Combined, the firms will produceunits of output, of which Firm 1 will produce units and Firm 2 will produce units. (Enter a numeric response using a real number rounded to two decimal placos.)...
ECON M/C is this correct? A duopoly faces the inverse demand curve p = 10 –...
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...
= Consider an industry consisting of two firms which produce a homogeneous commodity. The industry demand...
= 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,...
Consider two firms facing the demand curve 18 17 16 P=60-5Q where Q Q +Q The...
Consider two firms facing the demand curve 18 17 16 P=60-5Q where Q Q +Q The firms' cost functions are C1(Q110+15Q1 12 and C2 (°2)-5+3002 Suppose that both firms have entered the industry. What is the joint profit-maximizing level of output? How much will each firm produce? Combined, the firms will produce units of output of which Firm 1 w produce units and Firm 2 will produce units. (Enter a numeric response using a real number rounded to two decimal...
Joint profit maximizing output and Cournot model Consider two firms facing the demand curve P=75-5C, where...
Joint profit maximizing output and Cournot model
Consider two firms facing the demand curve P=75-5C, where Q Q1 +Q2. The firms' cost functions are Cl (Q1) = 15 +10Q1 and C2 (Q2)-10 + 20Q2. Suppose that both firms have entered the industry. What is the joint profit-maximizing level of output? How much will each firm produce? Combined, the firms will produce units of output, of which Firm 1 will produce units and Firm 2 will produceunits. (Enter a numeric response...
Suppose we have a market demand Q = 18 – P and a cost C(Q) 9)...
Suppose we have a market demand Q = 18 – P and a cost C(Q) 9) = 3Q?. (10 points) Suppose the two firms cannot collude and instead compete in the Cournot Model in the market described in question 1 (market demand is still Q 18 – P) with the same cost (C(q) = -23. 2 a. Set up firm 1's profit maximization. b. Solve for firm 1's best response function. C. Solve for firm 1's quantity, firm 2's quantity,...
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 co...
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...
ECON M/C
An industry has two firms. The demand curve for the industry's output is given by p = 370 – 24, where q is the total industry output. Each firm has a constant marginal cost equal to 10. Suppose that one firm is the Stackelberg leader and the other firm is the Stackelberg follower. The leader will choose quantity Select one: a. 80 b. 120 O C. 150 O d. 90 O e. None of the above.
[Cournot competition with N firms] There are three identical firms in the industry. The inverse demand function is p(Q-1-Q, where Q = q1 +92+93 denotes aggregate output. To facilitate your calculations, assume that the marginal cost for all firms is zero, c 0· 2. (a) Find the best response function for each firm. Interpret b) Compute the Cournot equilibrium. (c) Assume that two of the three firms merge (transforming the industry into a duopoly). Show that the profit of the...
ECON M?C
There are two firms in an industry. The industry demand curve is given by p = 60 - q. Each firm has one manufacturing plant and each firm i has a cost function C(q) = 97, where qi is the output of firm i. The two firms form a cartel and arrange to split total industry profits equally. Under this cartel arrangement, they will maximize joint profits if Select one: O a. each firm produces 15 units in...
Consider two firms facing the demand curve P=90-SQ. 17 where Q Q1+02. The firms' cost functions are С, (A) 10 +sal 13 12 and C2(92)#5+10Q2. Suppose that both firms have entered the industry. What is the joint profit-maximizing level of output? How much will each firm produce? Combined, the firms will produceunits of output, of which Firm 1 will produce units and Firm 2 will produce units. (Enter a numeric response using a real number rounded to two decimal placos.)...
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...
= 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,...
Consider two firms facing the demand curve 18 17 16 P=60-5Q where Q Q +Q The firms' cost functions are C1(Q110+15Q1 12 and C2 (°2)-5+3002 Suppose that both firms have entered the industry. What is the joint profit-maximizing level of output? How much will each firm produce? Combined, the firms will produce units of output of which Firm 1 w produce units and Firm 2 will produce units. (Enter a numeric response using a real number rounded to two decimal...
Joint profit maximizing output and Cournot model
Consider two firms facing the demand curve P=75-5C, where Q Q1 +Q2. The firms' cost functions are Cl (Q1) = 15 +10Q1 and C2 (Q2)-10 + 20Q2. Suppose that both firms have entered the industry. What is the joint profit-maximizing level of output? How much will each firm produce? Combined, the firms will produce units of output, of which Firm 1 will produce units and Firm 2 will produceunits. (Enter a numeric response...
Suppose we have a market demand Q = 18 – P and a cost C(Q) 9) = 3Q?. (10 points) Suppose the two firms cannot collude and instead compete in the Cournot Model in the market described in question 1 (market demand is still Q 18 – P) with the same cost (C(q) = -23. 2 a. Set up firm 1's profit maximization. b. Solve for firm 1's best response function. C. Solve for firm 1's quantity, firm 2's quantity,...
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...
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