Homework Answers
Add Answer to:
3. Monopolistic Competition Consider a situation where two firms, 1 and 2 produce an similar product...
2. Consider a Cournot competition model with two firms, 1 and 2. They produce identical goods...
2. Consider a Cournot competition model with two firms, 1 and 2. They produce identical goods in the same market with demand function P= 100-5Q with Q=91 +92. Furthermore, their production process generates pollution to the environment, which increases their cost of production. Their cost functions are given by C1(91,92) = 109,- +5Q and C291,92) = 15922 +45Q. a (10pts) Calculate their equilibrium quantities, price, and profits for both firms. b. (5pts) Consider they collude and form a cartel. That...
The market for widgets consists of two firms that produce identical products. Competition in the market...
The market for widgets consists of two firms that produce identical products. Competition in the market is such that each of the firms independently produces a quantity of output, and these quantities are then sold in the market at a price that is determined by the total amount produced by the two firms. Firm 2 is known to have a cost advantage over firm 1. A recent study found that the (inverse) market demand curve faced by the two firms...
Can someone help with the problem below? Suppose two oligopolistic firms face a market (inverse) demand curve P(Y + Y2...
Can someone help with the problem below?
Suppose two oligopolistic firms face a market (inverse) demand curve P(Y + Y2) = 20 - (Y1 + Y). Both firms produce at constant marginal cost, but they are not symmetric: firm 1 has marginal cost 2 and firm 2 has marginal cost 4. For each of the following competitive situations below, compute: • The equilibrium price. • The equilibrium quantities produced by each firm. • The profits received by each firm. (a)...
There are 2 firms in a market producing differentiated products. The firms both have MC that...
There are 2 firms in a market producing differentiated products. The firms both have MC that is equal to 0 Firm 1 demand is q1(p1,p2) = 6-2p1 + p2 Firm 2 demand is q2(p1,p2) = 6-2p2 + p1 1. Firms compete in quantities- Cournot Competition. What are the inverse demand functions for firm 1 and 2? 2. Find and graph each firm’s best response functions. The quantities are strategic substitutes or complements? 3. Find the Nash equilibrium prices and quantities...
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)
The major difference between monopolistic competition and monopoly is O A. only a firm in monopolistic...
The major difference between monopolistic competition and monopoly is A. only a firm in monopolistic competition can earn an economic profit in the short run. B. only firms in monopolistic competition are protected by barriers to entryC. only a monopoly can earn an economic profit in the long run. D. how the quantity of output is determined. E. monopoly is a price setter and a firm in monopolistic competition is a price taker.In the long run, firms in monopolistic competition earn zero economic profit...
Question 2. XYZ and MLN are two firms that produce identical woomeras that they sell to...
Question 2. XYZ and MLN are two firms that produce identical woomeras that they sell to a market that has inverse demand p=10-Q, where Q is total market supply. XYZ has constant marginal cost of $1 per unit, and MLN has constant marginal cost of $2 per unit. The two firms are engaged in Cournot competition. (a) What are equilibrium quantities and profits?
Consider a Cournot competition with two firms, A and B. The marginal costs of each firm...
Consider a Cournot competition with two firms, A and B. The marginal costs of each firm is MCA = MCB = 40. The inverse demand function is P = 130 - Q. Find the Nash equilibrium quantities for each firm and the market 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?...
Mathematical Question 3 (30pts) 3. Consider two firms are performing Cournot price competition in two differentiated...
Mathematical Question 3 (30pts) 3. Consider two firms are performing Cournot price competition in two differentiated goods markets. Firm 1 produces goods 1, and firm 2 produces goods 2, and two market demand functions are given by 91 (P1,P2) = 12-2p1 + P2 and 921,P2) = 12-2p2 + P 1. Furthermore, assume that the two firms have the same cost function such that fixed cost is $20 and variable cost is zero. a. (10pts) Calculate the equilibrium prices, quantities and...
2. Consider a Cournot competition model with two firms, 1 and 2. They produce identical goods in the same market with demand function P= 100-5Q with Q=91 +92. Furthermore, their production process generates pollution to the environment, which increases their cost of production. Their cost functions are given by C1(91,92) = 109,- +5Q and C291,92) = 15922 +45Q. a (10pts) Calculate their equilibrium quantities, price, and profits for both firms. b. (5pts) Consider they collude and form a cartel. That...
Can someone help with the problem below?
Suppose two oligopolistic firms face a market (inverse) demand curve P(Y + Y2) = 20 - (Y1 + Y). Both firms produce at constant marginal cost, but they are not symmetric: firm 1 has marginal cost 2 and firm 2 has marginal cost 4. For each of the following competitive situations below, compute: • The equilibrium price. • The equilibrium quantities produced by each firm. • The profits received by each firm. (a)...
Question 2. XYZ and MLN are two firms that produce identical woomeras that they sell to a market that has inverse demand p=10-Q, where Q is total market supply. XYZ has constant marginal cost of $1 per unit, and MLN has constant marginal cost of $2 per unit. The two firms are engaged in Cournot competition. (a) What are equilibrium quantities and profits?
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?...
Mathematical Question 3 (30pts) 3. Consider two firms are performing Cournot price competition in two differentiated goods markets. Firm 1 produces goods 1, and firm 2 produces goods 2, and two market demand functions are given by 91 (P1,P2) = 12-2p1 + P2 and 921,P2) = 12-2p2 + P 1. Furthermore, assume that the two firms have the same cost function such that fixed cost is $20 and variable cost is zero. a. (10pts) Calculate the equilibrium prices, quantities and...
Most questions answered within 3 hours.
-
Comment on how the conference could have been improved What
additional elements would you consider adding...
asked 3 minutes ago -
Sandra Clothing Company has invested $51,000,000 in its
business. The target rate of return for the...
asked 3 minutes ago -
"Discover the privacy concerns when applying Artificial
Intelligence into Big Data"
asked 4 minutes ago -
Explain why organisms that can survive and/or grow under aerobic
conditions need the enzymes catalase and...
asked 10 minutes ago -
Moonwalker Corporation issued 2,000 shares of its $10 par value
common stock for $60,000. Moonwalker also...
asked 9 minutes ago -
A microphone connected to an amplifier takes a 10 dB voice and
turns it into a...
asked 14 minutes ago -
Suppose the mean time spent by all Harper College students
preparing for final exams is believed...
asked 29 minutes ago -
Imagine you are examining the effects of smoking in
heart-disease death rates. You collect an SRS...
asked 31 minutes ago -
Use the price-demand equation to find E(p), the elasticity of
demand.
x=f(p)=150 - 55 ln(p)
E(p)...
asked 26 minutes ago -
Suppose you deposit $1000 today in an account, expecting at some
point to receive $2000. This...
asked 29 minutes ago -
A student determines the heat of dissolution of solid
cesium perchlorate using a coffee-cup calorimeter
of...
asked 26 minutes ago -
Type a web page with content about Internet Technologies
Membership that has the following:
A.Form: Use...
asked 46 minutes ago