There are only 2 shoe stores in a small town, and they each can supply a...
There are only 2 shoe stores in a small town, and they each can supply a pair of shoes at a constant marginal cost of MC = $18. Total market demand for shoes in this town is given by P = 150 – Q. If the 2 firms compete against each other in a Cournot duopoly, how many pairs of shoes will each firm produce and what will be the resulting market price?
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There are only 2 shoe stores in a small town, and they each can
supply a...
Solve step by step please 5. Suppose the demand for pizza in a small isolated town...
Solve step by step please
5. Suppose the demand for pizza in a small isolated town is p- 10 -Q. There are only two firms, A and B, and each has a cost function TC-2 q. Determine the Cournot equilibrium. 6. Consider a market with just one firm. The demand in the market is p a linear cost function C(Q) = 2 18-Q and the firm has a. How much output will this firm produce. What will be the profit...
2) (30 pts) Suppose that the market demand for soft drinks in a small town in...
2) (30 pts) Suppose that the market demand for soft drinks in a small town in Western Massachusetts is given as follows: P = 47-Q A firm producing soft drinks can do so at a marginal cost of $2 (per gallon). There is no fixed cost. Soft drinks are a homogenous good. a. What is the profit maximizing level of output and price of a monopolist? b. What will be the level of output and price in the market if...
4. (12 MARKS -6 FOR EACH PART) Two firms produce homogeneous products and compete as Cournot...
4. (12 MARKS -6 FOR EACH PART) Two firms produce homogeneous products and compete as Cournot duopolists. Inverse market demand is given by P 30 Q. Firm 1 has a marginal cost of 5 per unit. Firm 2's marginal cost is c2<5. (a) Suppose that c2 falls. What will happen to the Cournot equilibriumi) price, (ii) consumer surplus and total surplus, and (ii) the HHI? Explain your answer. (b) How does this example relate to criticisms of the use of...
EC202-5-FY 10 9Answer both parts of this question. (a) Firm A and Firm B produce a homogenous good and are Cournot duopolists. The firms face an inverse market demand curve given by P 10-Q. where...
EC202-5-FY 10 9Answer both parts of this question. (a) Firm A and Firm B produce a homogenous good and are Cournot duopolists. The firms face an inverse market demand curve given by P 10-Q. where P is the market price and Q is the market quantity demanded. The marginal and average cost of each firm is 4 i. 10 marks] Show that if the firms compete as Cournot duopolists that the total in- dustry output is 4 and that if...
Two firms sell identical products and compete as Cournot (price-setting) competitors in a market with a...
Two firms sell identical products and compete as Cournot (price-setting) competitors in a market with a demand of p = 150 - Q. Each firm has a constant marginal and average cost of $3 per unit of output. Find the quantity each firm will produce and the price in equilibrium.
Demand in a market dominated by two firms (a Cournot duopoly) is determined according to: P...
Demand in a market dominated by two firms (a Cournot duopoly) is determined according to: P = 300 – 4(Q1 + Q2), where P is the market price, Q1 is the quantity demanded by Firm 1, and Q2 is the quantity demanded by Firm 2. The marginal cost and average cost for each firm is constant; AC=MC = $74. The cournot-duopoly equilibrium profit for each firm is
please explain all details. Market demand curve for a good produced only by two firms is...
please explain all details.
Market demand curve for a good produced only by two
firms is given by P= 70- 20. Both firms produce with constant and
identical marginal cost of 3. 10, that is MC, = MC, = 10.
(P,Q.4-42,) in Cournot equilibrium. a) Find b) Find (P,Q,q1,92,,,
2) in Stackelberg equilibrium with Firm 1 acting as the leader. c)
Compare your findings with monopoly and competitive equilibria.
Market demand curve for a good produced only by two firms...
A homogeneous product duopoly faces a market demand function given by p = 300 - 3Q,where...
A homogeneous product duopoly faces a market demand function given by p = 300 - 3Q,where Q = q1 + q2. Both firms have constant marginal cost MC = 100. (part 2) 1a. What is the Bertrand equilibrium price and quantity in this market? 1b. Suppose Firm 1 is the Stackelberg leader, what is the equilibrium price in this market if Firm 2 plays the follower in this duopoly market? What is the equilibrium quantity? How much does each firm...
Two firms, Acme and Roadco, produce anvils, and compete with each other as Cournot oligopolists (i.e....
Two firms, Acme and Roadco, produce anvils, and compete with each other as Cournot oligopolists (i.e. they compete in quantities). The (inverse) demand for anvils is given by P(Q)=500-3Q. Both firms have constant marginal costs of MC=50 and no fixed costs. Hint: the partial derivative of (c-bX-bY)X with respect to X is c-2bX-bY. What is the equilibrium consumer and producer surplus in the market? (5 points)
Demand in a market dominated by two firms (a Cournot duopoly) is determined according to: P...
Demand in a market dominated by two firms (a Cournot duopoly) is determined according to: P = 200 – 2(Q1 + Q2), where P is the market price, Q1 is the quantity demanded by Firm 1, and Q2 is the quantity demanded by Firm 2. The marginal cost and average cost for each firm is constant; AC=MC = $75. The cournot-duopoly equilibrium quantity produced by each firm is _____. Hint: Write your answer to two decimal places.
Solve step by step please
5. Suppose the demand for pizza in a small isolated town is p- 10 -Q. There are only two firms, A and B, and each has a cost function TC-2 q. Determine the Cournot equilibrium. 6. Consider a market with just one firm. The demand in the market is p a linear cost function C(Q) = 2 18-Q and the firm has a. How much output will this firm produce. What will be the profit...
2) (30 pts) Suppose that the market demand for soft drinks in a small town in Western Massachusetts is given as follows: P = 47-Q A firm producing soft drinks can do so at a marginal cost of $2 (per gallon). There is no fixed cost. Soft drinks are a homogenous good. a. What is the profit maximizing level of output and price of a monopolist? b. What will be the level of output and price in the market if...
4. (12 MARKS -6 FOR EACH PART) Two firms produce homogeneous products and compete as Cournot duopolists. Inverse market demand is given by P 30 Q. Firm 1 has a marginal cost of 5 per unit. Firm 2's marginal cost is c2<5. (a) Suppose that c2 falls. What will happen to the Cournot equilibriumi) price, (ii) consumer surplus and total surplus, and (ii) the HHI? Explain your answer. (b) How does this example relate to criticisms of the use of...
EC202-5-FY 10 9Answer both parts of this question. (a) Firm A and Firm B produce a homogenous good and are Cournot duopolists. The firms face an inverse market demand curve given by P 10-Q. where P is the market price and Q is the market quantity demanded. The marginal and average cost of each firm is 4 i. 10 marks] Show that if the firms compete as Cournot duopolists that the total in- dustry output is 4 and that if...
please explain all details.
Market demand curve for a good produced only by two
firms is given by P= 70- 20. Both firms produce with constant and
identical marginal cost of 3. 10, that is MC, = MC, = 10.
(P,Q.4-42,) in Cournot equilibrium. a) Find b) Find (P,Q,q1,92,,,
2) in Stackelberg equilibrium with Firm 1 acting as the leader. c)
Compare your findings with monopoly and competitive equilibria.
Market demand curve for a good produced only by two firms...
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