There are only two firms in the widget industry. The total demand for widgets is Q...
There are only two firms in the widget industry.
The total demand for widgets is Q 5 30-2P.
The two firms have identical cost functions, TC 5 3 + 10Q.
The two firms agree to collude and act as though the industry were a monopoly.
At what price and quantity will this cartel maximize its profit?
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There are only two firms in the widget industry.
The total demand for widgets is Q...
An industry consists of two firms with identical demand function ? = 100 − ??, where...
An industry consists of two firms with identical demand function ? = 100 − ??, where ?? = ?1 + ?2. Both firms have identical cost ?? = 40??, where ? = 1,2. Both firms pay attention to the behaviour of their competitor in determining the output produced, and both firms make their decision simultaneously (no one moves first). (a) If both firms decide to compete in determining their outputs, find the profit maximizing q and P and calculate the...
Two duopoly firms each have a cost function: TC (Q) 600 Market Inverse Demand is: Po (Q)-824 0.6Q After the duopoli...
Two duopoly firms each have a cost function: TC (Q) 600 Market Inverse Demand is: Po (Q)-824 0.6Q After the duopolists meet secretly and agree to evenly split the profit-maximizing output, Firm 1 decides to break the monopoly-splitting agreement and change its output to maximize its own profit. What will be the reduction in price for both firms to the nearest dollar? (Subtract the new price from the monopoly price]
Two duopoly firms each have a cost function: TC (Q)...
Problem 1: Suppose that the market demand function is given by q-80-2p. All firms in the...
Problem 1: Suppose that the market demand function is given by q-80-2p. All firms in the industry have marginal cost of 10 and no fixed cost. In this problem, the firms compete in quantities. (a) What is the equilibrium price, quantity, consumer surplus, profit (producer surplus) and deadweight loss if there is only one firm in the industry? (b) Now answer the same question if there are two firms in the industry (duopoly). How does your answer compare to the...
5. Cournot Competition Consider a Coumot duopoly model. Suppose that market demand is P-a-qi Also suppose that the cost functions of the two firms are TG (q) = q, and T( (a) Write the profit func...
5. Cournot Competition Consider a Coumot duopoly model. Suppose that market demand is P-a-qi Also suppose that the cost functions of the two firms are TG (q) = q, and T( (a) Write the profit function, and the first order condition. (b) Find out the profit maximizing output for each firm. (c) Find the pofit earned by each firm, total profit eamed by the two fims to (d) Now assume that the two firms collude and act as a monopoly....
I ONLY NEED PART (E) PLEASE! On a market with monopolistic competition, a firm meets the demand Q...
I ONLY NEED PART (E) PLEASE! On a market with monopolistic competition, a firm meets the demand Q D = 400 – 4P. The firm’s marginal cost is given by MC = 40 + 2Q. A. Which quantity should the firm produce to maximize its profit? Which is the profit maximizing price on the market? B. Draw a figure that shows the firm’s profit maximizing quantity and price. C. What is the firm’s long-term profit? D. Now instead assume the...
Two duopoly firms each have a cost function: TC(Q) 60Q Market Inverse Demand is: Pp (Q)824 0.6Q After the duopolist...
Two duopoly firms each have a cost function: TC(Q) 60Q Market Inverse Demand is: Pp (Q)824 0.6Q After the duopolists meet secretly and agree to evenly split the profit-maximizing output, Firm 1 decides to break the monopoly-splitting agreement and change its output to maximize its own profit. What will be the net loss of profit for the two firms to the nearest dollar?
Two duopoly firms each have a cost function: TC(Q) 60Q Market Inverse Demand is: Pp (Q)824 0.6Q...
1.Consider an industry with only two firms that produce identical products. Each of the firms only...
1.Consider an industry with only two firms that produce identical products. Each of the firms only incurs a fixed cost of $1000 to produce and marginal cost is 20. The market demand function is as follows: Q=q1+q2=400-P a. Assuming that the firms form a cartel, calculate the profit-maximizing quantity of output, price and profits b. If the firms choose to behave as in the Cournot model, what would be the profit- maximizing quantities of output, price and profits? c. if...
The can industry is composed of two firms. Suppose that the demand curve for cans is...
The can industry is composed of two firms. Suppose that the demand curve for cans is P= 100- Q and total cost function of each firm is TC = 2 + 15q. b) If only one firm enters new market, how much will each firm produce and will make the profit? c) If both enter the new market, how much will each firm produce and will make the profit? e) If these two firms collude and they want to maximize...
The answers I filled are wrong. 1 Suppose that two identical firms produce widgets and that...
The answers I filled are wrong.
1 Suppose that two identical firms produce widgets and that they are the only firms in the market. Their costs are given by C1 = 60Q1 and C2 = 60Q2, where Q1 is the output of Firm 1 and Q2 is the output of Firm 2. Price is determined by the following demand curve: P= 900-Q where Q = Q1 +Q2: Find the Cournot-Nash equilibrium. Calculate the profit of each firm at this equilibrium....
Scenario: Two identical firms make up an industry (duopoly) in which the market demand curve is...
Scenario: Two identical firms make up an industry (duopoly) in which the market demand curve is represented by Qd=5,000-4P, and the marginal cost (MC) is constant and equal to $650. Suppose the two firms decide to cooperate and collude; resulting in the same amount of production for each firm. What is the profit-maximizing price and output for the industry? Price = $300; Q= 2,000 units Price = $400, Q= 5,000 units Price = $950; Q= 1,200 units Price = $600,...
Two duopoly firms each have a cost function: TC (Q) 600 Market Inverse Demand is: Po (Q)-824 0.6Q After the duopolists meet secretly and agree to evenly split the profit-maximizing output, Firm 1 decides to break the monopoly-splitting agreement and change its output to maximize its own profit. What will be the reduction in price for both firms to the nearest dollar? (Subtract the new price from the monopoly price]
Two duopoly firms each have a cost function: TC (Q)...
Problem 1: Suppose that the market demand function is given by q-80-2p. All firms in the industry have marginal cost of 10 and no fixed cost. In this problem, the firms compete in quantities. (a) What is the equilibrium price, quantity, consumer surplus, profit (producer surplus) and deadweight loss if there is only one firm in the industry? (b) Now answer the same question if there are two firms in the industry (duopoly). How does your answer compare to the...
5. Cournot Competition Consider a Coumot duopoly model. Suppose that market demand is P-a-qi Also suppose that the cost functions of the two firms are TG (q) = q, and T( (a) Write the profit function, and the first order condition. (b) Find out the profit maximizing output for each firm. (c) Find the pofit earned by each firm, total profit eamed by the two fims to (d) Now assume that the two firms collude and act as a monopoly....
Two duopoly firms each have a cost function: TC(Q) 60Q Market Inverse Demand is: Pp (Q)824 0.6Q After the duopolists meet secretly and agree to evenly split the profit-maximizing output, Firm 1 decides to break the monopoly-splitting agreement and change its output to maximize its own profit. What will be the net loss of profit for the two firms to the nearest dollar?
Two duopoly firms each have a cost function: TC(Q) 60Q Market Inverse Demand is: Pp (Q)824 0.6Q...
The answers I filled are wrong.
1 Suppose that two identical firms produce widgets and that they are the only firms in the market. Their costs are given by C1 = 60Q1 and C2 = 60Q2, where Q1 is the output of Firm 1 and Q2 is the output of Firm 2. Price is determined by the following demand curve: P= 900-Q where Q = Q1 +Q2: Find the Cournot-Nash equilibrium. Calculate the profit of each firm at this equilibrium....
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