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3. (8 points) Consider a duopoly with a market demand curve given by p- 300 -...
3. (8 points) Consider a duopoly with a market demand curve given by p- 300 - 3Y (a) (4 points) Suppose that each firm has constant marginal costs MC 100 and fixed costs FC- 50. Derive each firm'...
3. (8 points) Consider a duopoly with a market demand curve given by p- 300 - 3Y (a) (4 points) Suppose that each firm has constant marginal costs MC 100 and fixed costs FC- 50. Derive each firm's reaction function (b) (2 points) Using the same MC and FC values as in part (a), find the equilibrium price and quantities for each firm (e) (2 points) Calculate the total proft of each firm.
3. (8 points) Consider a duopoly with...
A homogeneous products duopoly faces a market demand function given by P a - Q, where...
A homogeneous products duopoly faces a market demand function given by P a - Q, where QQ Q2 and a>300. Both firms have constant marginal costs MC-100. There are no fixed costs. a) What is firm 1's optimal quantity given that firm 2 produces an output of 50 units per year? And what is firm's 1 quantity if firm 2 produces 20 units? [4 marks] b) Derive the equation of each firm's reaction function and provide a graphical explanation to...
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...
2. (Cournot Model) Consider a Cournot duopoly. The market demand is p=160 - q2. Firm 1's...
2. (Cournot Model) Consider a Cournot duopoly. The market demand is p=160 - q2. Firm 1's marginal cost is 10, and firm 2's marginal cost is also 10. There are no fixed costs. A. Derive each firm's best response function B. What is the Nash equilibrium of this model? Find the equilibrium market price. C. Find the equilibrium profit for each firm D. Find the equilibrium consumer surplus in this market. 3. (Bertrand Model) Consider a Bertrand duopoly. The market...
can someone help me with question 9? QUESTION 9 A homogeneous products duopoly faces a market...
can someone help me with question 9?
QUESTION 9 A homogeneous products duopoly faces a market demand function given by P-a-Q, where Q Q1 + Q2 and a-300. Both firms have constant marginal costs MC-100. There are no fixed costs a) What is firm 1's optimal quantity given that firm 2 produces an output of 50 units per year? And what is frm's 1 quantity if firm 2 produces 20 units? 4 marks) b) Derive the equation of each firm's...
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
3. Coumot Competibion (26 points) Consider a Cournot model. The market demand is p-130-q-q Firm l's...
3. Coumot Competibion (26 points) Consider a Cournot model. The market demand is p-130-q-q Firm l's marginal cost is 10, and fim 2's marginal cost is also 10. There are no fixed costs. A. (10points) Derive the best response function for each firm B. (6 points) Find the Nash Equilibrium. T. (5 points) Find the equilibrium market price and each firm's equilibrium profit. D. (5 points) Find the consumer surplus at the market equilibrium.
Suppose that the market demand curve for mineral water is given as Q-100-10P and marginal cost...
Suppose that the market demand curve for mineral water is given as Q-100-10P and marginal cost is fixed at $4. Find the equilibrium price and quantity in each type of different market structure. Show your calculation (2 points for each subquestion). a) Monopoly b) Coumot duopoly c) Stackelberg duopoly d) Bertrand duopoly (MR is fixed at the level of MC). e) Perfect competitive market (MR is fixed at the level of MC)
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...
A market is organized as a duopoly, and the market demand function is Q = 1000...
A market is organized as a duopoly, and the market demand function is Q = 1000 - 1000P. Each of the two firms has a constant marginal cost equal to $0.28 per unit of output. a) Derive the best-response function for each firm. b) Calculate the equilibrium quantity supplied in the market and the equilibrium price. c) Calculate the profit level for each firm.
3. (8 points) Consider a duopoly with a market demand curve given by p- 300 - 3Y (a) (4 points) Suppose that each firm has constant marginal costs MC 100 and fixed costs FC- 50. Derive each firm's reaction function (b) (2 points) Using the same MC and FC values as in part (a), find the equilibrium price and quantities for each firm (e) (2 points) Calculate the total proft of each firm.
3. (8 points) Consider a duopoly with...
A homogeneous products duopoly faces a market demand function given by P a - Q, where QQ Q2 and a>300. Both firms have constant marginal costs MC-100. There are no fixed costs. a) What is firm 1's optimal quantity given that firm 2 produces an output of 50 units per year? And what is firm's 1 quantity if firm 2 produces 20 units? [4 marks] b) Derive the equation of each firm's reaction function and provide a graphical explanation to...
2. (Cournot Model) Consider a Cournot duopoly. The market demand is p=160 - q2. Firm 1's marginal cost is 10, and firm 2's marginal cost is also 10. There are no fixed costs. A. Derive each firm's best response function B. What is the Nash equilibrium of this model? Find the equilibrium market price. C. Find the equilibrium profit for each firm D. Find the equilibrium consumer surplus in this market. 3. (Bertrand Model) Consider a Bertrand duopoly. The market...
can someone help me with question 9?
QUESTION 9 A homogeneous products duopoly faces a market demand function given by P-a-Q, where Q Q1 + Q2 and a-300. Both firms have constant marginal costs MC-100. There are no fixed costs a) What is firm 1's optimal quantity given that firm 2 produces an output of 50 units per year? And what is frm's 1 quantity if firm 2 produces 20 units? 4 marks) b) Derive the equation of each firm's...
3. Coumot Competibion (26 points) Consider a Cournot model. The market demand is p-130-q-q Firm l's marginal cost is 10, and fim 2's marginal cost is also 10. There are no fixed costs. A. (10points) Derive the best response function for each firm B. (6 points) Find the Nash Equilibrium. T. (5 points) Find the equilibrium market price and each firm's equilibrium profit. D. (5 points) Find the consumer surplus at the market equilibrium.
Suppose that the market demand curve for mineral water is given as Q-100-10P and marginal cost is fixed at $4. Find the equilibrium price and quantity in each type of different market structure. Show your calculation (2 points for each subquestion). a) Monopoly b) Coumot duopoly c) Stackelberg duopoly d) Bertrand duopoly (MR is fixed at the level of MC). e) Perfect competitive market (MR is fixed at the level of MC)
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