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10. Two firms produce a homogenous product. The industry demand curve is: P-40-40 And the marginal...
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...
An industry consists of two Cournot firms selling a homogeneous product with a market demand curve...
An industry consists of two Cournot firms selling a homogeneous product with a market demand curve given by P=100-Q1-Q2. Each firm has a marginal cost of $10 per unit. (a) Find the Cournot equilibrium quantities and prices. (b) What is the Bertrand equilibrium price in this market? (c) Find the quantities and price that would prevail if the firms acted as if they were a monopolist (I.e. find the collusive outcome) and then find the equilibrium price and quantity that...
2. Suppose the market demand curve is P = 40 − 3Q and all firms in...
2. Suppose the market demand curve is P = 40 − 3Q and all firms in the industry face M C = 4 and have no fixed costs. For each of the following situations, calculate the five items: Market Price , Quantity per firm ,Profits per firm ,Consumer Surplus ,Deadweight Loss (a) Uniform pricing monopolist P = Q = π = CS = DWL = (b) Cournot Duopoly P= Q1 = Q2 = π 1 = π2...
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...
= 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,...
pls answer as many qwuestions!! 1. A market has an inverse demand curve and four firms,...
pls
answer as many qwuestions!!
1. A market has an inverse demand curve and four firms, each of which has a constant marginal cost of. If the firms form a profit-maximizing cartel and agree to operate subject to the constraint that each firm will produce the same output level, how much does each firm produce? 2. Duopoly quantity-setting firms face the market demand curve. Each firm has a marginal cost of $60 per unit. a. What is the Nash-Cournot equilibrium?...
Q4. There are two firms A and B in a homogenous product industry. Inverse demand is...
Q4. There are two firms A and B in a homogenous product industry. Inverse demand is P = 120 Q where Q is the combined output of the firms. Firm A has a marginal cost of 0 and firm B has a marginal cost of 10. There is an infinite sequence of periods in which firms simultaneously set prices. In this question we will consider whether the following collusive strategies with trigger strategy punish- ments are a subgame perfect Nash...
Two firms in an industry engaged in Bertrand competition. The industry inverse demand function is p...
Two firms in an industry engaged in Bertrand competition. The industry inverse demand function is p = 40 - 2Q, and marginal cost is MC = 10 for both firms. No firm faces capacity constraints. Find the BertrandNash equilibrium (prices, quantities, profits consumer surplus, total surplus, herfindahl index and lerner index)
Problem 3- Bertrand Consider 2 firms selling a homogenous product with market demand as below: Q...
Problem 3- Bertrand Consider 2 firms selling a homogenous product with market demand as below: Q = 110-P Firm 1's marginal cost is 10 per unit, firm 2's is 5 per unit. The firms compete on price, not quantity. What is the equilibrium production of each firm, and what is each firm's profit?
4. Homogenous product Bertrand. Suppose that the demand for marbles is given by Q- 80 -...
4. Homogenous product Bertrand. Suppose that the demand for marbles is given by Q- 80 - 5P, where Q is measured in bags of marbles. There are two firms that supply the market, and the firms produce identical marbles (i.e., they are homogenous products). Firm 1 has a constant marginal cost of $10.00/bag, while firm 2 has a constant marginal cost of S5.00/bag. The two firms compete in price. In Nash Equilibrium, what prices will the two firms set? How...
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...
= 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,...
pls
answer as many qwuestions!!
1. A market has an inverse demand curve and four firms, each of which has a constant marginal cost of. If the firms form a profit-maximizing cartel and agree to operate subject to the constraint that each firm will produce the same output level, how much does each firm produce? 2. Duopoly quantity-setting firms face the market demand curve. Each firm has a marginal cost of $60 per unit. a. What is the Nash-Cournot equilibrium?...
Q4. There are two firms A and B in a homogenous product industry. Inverse demand is P = 120 Q where Q is the combined output of the firms. Firm A has a marginal cost of 0 and firm B has a marginal cost of 10. There is an infinite sequence of periods in which firms simultaneously set prices. In this question we will consider whether the following collusive strategies with trigger strategy punish- ments are a subgame perfect Nash...
Problem 3- Bertrand Consider 2 firms selling a homogenous product with market demand as below: Q = 110-P Firm 1's marginal cost is 10 per unit, firm 2's is 5 per unit. The firms compete on price, not quantity. What is the equilibrium production of each firm, and what is each firm's profit?
4. Homogenous product Bertrand. Suppose that the demand for marbles is given by Q- 80 - 5P, where Q is measured in bags of marbles. There are two firms that supply the market, and the firms produce identical marbles (i.e., they are homogenous products). Firm 1 has a constant marginal cost of $10.00/bag, while firm 2 has a constant marginal cost of S5.00/bag. The two firms compete in price. In Nash Equilibrium, what prices will the two firms set? How...
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