d)
Suppose a second firm enters the market described in question 1 (market demand is still Q...
Suppose we have a market demand Q = 18 – P and a cost C(Q) 9) = 3Q?. Suppose a second firm enters the market described in question 1 (market demand is 1 still Q = 18 – P) with the same cost (cle) = 109. a. If the two firms successful collude what is the equilibrium market quantity and price? b. If the two firms successfully collude what is the joint profit? C. What do we call a collusion...
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,...
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)=1/2 *Q^2). Set up firm 1’s profit maximization. Solve for firm 1’s best response function. Solve for firm 1’s quantity, firm 2’s quantity, the equilibrium market quantity, and price. Show your work. Is this a Nash equilibrium? Do consumers prefer the Cournot competition equilibrium over the collusion of the two firms...
3. 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)=Q2). 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 equilibrium market quantity, and price. Show your work. d. Is this a Nash equilibrium? e. Do consumers prefer the Cournot...
3. 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)=Q2). e. Do consumers prefer the Cournot competition equilibrium over the collusion of the two firms in question 3? f. Do the two firms prefer Cournot competition over colluding (assuming the collusion agreement is to split joint profits equally)?
1. Suppose that firm 1 in the market described in question 1 has first mover advantage. (Market demand is Q = 18 – P and both firms have the same cost C(q) = Q2) a. What do we call a market where two firms move sequentially? b. Set up and solve for firm 1's output, firm 2's output, market output, and equilibrium price. Show all work for each step. C. Do consumers prefer this over the Cournot equilibrium ? d....
1 1. Suppose that firm 1 in the market described in question 1 has first mover advantage. (Market demand is e = 18 – P and both firms have the same cost C(Q) a. What do we call a market where two firms move sequentially? 302) b. Set up and solve for firm l's output, firm 2's output, market output, and equilibrium price. Show all work for each step. C. Do consumers prefer this over the Cournot equilibrium you described...
Suppose two firms cannot collude and compete in the Cournot Model. Market demand is Q = 18 – P with the cost (c(Q) =*Q). a. Set up firm l's profit maximization. b. Solve for firm l's best response function. c. Solve for firm l's quantity, firm 2's quantity, the equilibrium market quantity, and price. Show your work. d. Is this a Nash equilibrium?
Suppose we have a market demand Q = 18 – P and a cost C(Q) 9) = 3Q?. Suppose that firm 1 in the market described in question 1 has first mover advantage. (Market demand is Q 18 – P and both firms have the same cost C(Q) - Q? a. What do we call a market where two firms move sequentially? b. Set up and solve for firm l's output, firm 2's output, market output, and equilibrium price. Show...
Suppose that demand in a given market is given by P = 439 - Q and marginal costs are constant, with MC = 147. Assume that fixed costs are zero (so ATC also are constant at 147). If there are only two firms in the market, one can construct a matrix as shown below representing the payoffs to strategies: Firm 2 Collude (92=73) Compete (92=97) Collude (qı=73) 10658, 10658 8906, 11834 Firm 1 Compete (qi=97) 11834, 8906 9506, 9506 a.)...