Homework Answers
a) "C" it will increase both the concentration ratio and the HHI index of the market.
b) "D" Cournot duopoly with identical products.
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Question 31 (3 points) Suppose there are 10 firms operating in an industry. If the second-largest...
[Cournot competition with N firms] There are three identical firms in the industry. The inverse demand...
[Cournot competition with N firms] There are three identical firms in the industry. The inverse demand function is p(Q-1-Q, where Q = q1 +92+93 denotes aggregate output. To facilitate your calculations, assume that the marginal cost for all firms is zero, c 0· 2. (a) Find the best response function for each firm. Interpret b) Compute the Cournot equilibrium. (c) Assume that two of the three firms merge (transforming the industry into a duopoly). Show that the profit of the...
Question 1 1 pts An industry with a large number of relatively small firms producing differentiated...
Question 1 1 pts An industry with a large number of relatively small firms producing differentiated products in a market with easy entry and exit firms is: duopoly. oligopoly. monopoly. monopolistic competition. Question 13 1 pts To practice effective price discrimination, a firm must: have distinguishable customers. match the prices of its competitors. allow others to resell its product. advertise its product.
15.2 where a, b > 0 a. Suppose that firms' marginal and average costs are constant...
15.2 where a, b > 0 a. Suppose that firms' marginal and average costs are constant and equal to c and that inverse market demand is given by P = a - bQ. Calculate the profit-maximizing price-quantity combination for a monopolist. Also calculate the monopolist's profit. b. Calculate the Nash equilibrium quantities for Cournot duopolists, which choose quantities for their identical products simultaneously. Also compute market output, market price, and firm and industry profits. c. Calculate the Nash equilibrium prices...
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?...
please answer all 10 questions thanks Suppose there are only two firms in the marker, firm...
please answer all 10 questions
thanks
Suppose there are only two firms in the marker, firm A and firm B. They produce identical products. Firm A and firm B have the same constant marginal cost, MCA = MCB = ACA = ACB = 25. The market demand function is given by Q = 400 – 4P. a. If the firms practice under the Bertrand model, what will be the Nash equilibrium market price and output level? b. If these two...
1. (25 points) The market for study desks is characterized by perfect competition. Firms and consumers are price takers and in the long run there is free entry and exit of firms in this industry. Al...
1. (25 points) The market for study desks is characterized by perfect competition. Firms and consumers are price takers and in the long run there is free entry and exit of firms in this industry. All firms are identical in terms of their technological capabilities. Thus the cost function as given below for a representative firm can be assumed to function faced by each firm in the industry. The total cost and marginal cost functions t the representative firm are...
48) 48) A merger between firms that are in the same industry is called a A) vertical merger C) ho...
48) 48) A merger between firms that are in the same industry is called a A) vertical merger C) horizontal merger. B) conglomerate merger D) none of the above. 49) 49) In oligopoly, any action by one firm to change price, output, or quality causes A) no reaction from the other firms. B) a reaction by other firms. C) loss of market share by the acting firm D) a profit gain for the other firms. 50) 50) The industry concentration...
3. (10 points) Please explain why each of the following is NOT a perfectly competitive industry...
3. (10 points) Please explain why each of the following is NOT a perfectly competitive industry You have to explain in each case which one (or more) of the perfect competition assumptions are violated. You must give an explanation in each case. (a) One firm produces a large portion of the industry output and can influence the market price, but there are many other firms in that industry, and they all (including the large firm) produce an identical product. (b)...
Please help with these questions Question 17 0.4 pts The point of the 1890 Sherman Act...
Please help with these questions
Question 17 0.4 pts The point of the 1890 Sherman Act was to O establish patents and copyrights as ways to protect creative activity O make rent seeking through lobbying of public officials illegal. O nationalize industries where economies of scale were especially important. O prevent monopoly practices and promote commercial competition. forbid states from imposing import tariffs on other states. Question 18 0.4 pts With monopolistic competition, firms have demand curves that are the...
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...
[Cournot competition with N firms] There are three identical firms in the industry. The inverse demand function is p(Q-1-Q, where Q = q1 +92+93 denotes aggregate output. To facilitate your calculations, assume that the marginal cost for all firms is zero, c 0· 2. (a) Find the best response function for each firm. Interpret b) Compute the Cournot equilibrium. (c) Assume that two of the three firms merge (transforming the industry into a duopoly). Show that the profit of the...
Question 1 1 pts An industry with a large number of relatively small firms producing differentiated products in a market with easy entry and exit firms is: duopoly. oligopoly. monopoly. monopolistic competition. Question 13 1 pts To practice effective price discrimination, a firm must: have distinguishable customers. match the prices of its competitors. allow others to resell its product. advertise its product.
15.2 where a, b > 0 a. Suppose that firms' marginal and average costs are constant and equal to c and that inverse market demand is given by P = a - bQ. Calculate the profit-maximizing price-quantity combination for a monopolist. Also calculate the monopolist's profit. b. Calculate the Nash equilibrium quantities for Cournot duopolists, which choose quantities for their identical products simultaneously. Also compute market output, market price, and firm and industry profits. c. Calculate the Nash equilibrium prices...
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?...
please answer all 10 questions
thanks
Suppose there are only two firms in the marker, firm A and firm B. They produce identical products. Firm A and firm B have the same constant marginal cost, MCA = MCB = ACA = ACB = 25. The market demand function is given by Q = 400 – 4P. a. If the firms practice under the Bertrand model, what will be the Nash equilibrium market price and output level? b. If these two...
1. (25 points) The market for study desks is characterized by perfect competition. Firms and consumers are price takers and in the long run there is free entry and exit of firms in this industry. All firms are identical in terms of their technological capabilities. Thus the cost function as given below for a representative firm can be assumed to function faced by each firm in the industry. The total cost and marginal cost functions t the representative firm are...
48) 48) A merger between firms that are in the same industry is called a A) vertical merger C) horizontal merger. B) conglomerate merger D) none of the above. 49) 49) In oligopoly, any action by one firm to change price, output, or quality causes A) no reaction from the other firms. B) a reaction by other firms. C) loss of market share by the acting firm D) a profit gain for the other firms. 50) 50) The industry concentration...
3. (10 points) Please explain why each of the following is NOT a perfectly competitive industry You have to explain in each case which one (or more) of the perfect competition assumptions are violated. You must give an explanation in each case. (a) One firm produces a large portion of the industry output and can influence the market price, but there are many other firms in that industry, and they all (including the large firm) produce an identical product. (b)...
Please help with these questions
Question 17 0.4 pts The point of the 1890 Sherman Act was to O establish patents and copyrights as ways to protect creative activity O make rent seeking through lobbying of public officials illegal. O nationalize industries where economies of scale were especially important. O prevent monopoly practices and promote commercial competition. forbid states from imposing import tariffs on other states. Question 18 0.4 pts With monopolistic competition, firms have demand curves that are the...
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...
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