Two firms compete in a Cournot homogenous product duopoly. If Firm 1 increases its output, which...
Two firms compete in a Cournot homogenous product duopoly. If Firm 1 increases its output, which of the following is true?
Firm 2 will decrease its output and the market price will decrease.
Firm 2 will decrease its output and the market price will increase.
Firm 2 will increase its output and the market price will decrease.
Firm 2 will increase its output and the market price will increase.
Homework Answers
Ans isA
If firm 1 increases production then firm 2 will decrease its output. But total output will increase and price will decrease
Add Answer to:
Two firms compete in a Cournot homogenous product duopoly. If
Firm 1 increases its output, which...
Two identical firms compete as a Cournot duopoly. The inverse market demand they face is P...
Two identical firms compete as a Cournot duopoly. The inverse market demand they face is P = 120-2Q. The total cost function for each firm is TC1(Q) = 4Q1. The total cost function for firm 2 is TC2(Q) = 2Q2. What is the output of each firm? Find: Q1 = ? Q2 = ?
1. Consider the following asymmetric version of the Cournot duopoly model. Two firms compete by simultaneously...
1. Consider the following asymmetric version of the Cournot duopoly model. Two firms compete by simultaneously choosing the quantities (q, and q2) they produce. Their products are homogeneous, and market demand is given by p- 260-2Q, where Q-q +q2. Firm 1 has a cost advantage; Firm 1 produces at zero cost, while Firm 2 produces at a constant average cost of 40. (The difference in costs is what makes this an asymmetric game.) a. Derive both firms' profit functions, as...
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...
Compare the duopoly outcomes under the Cournot and Stackelberg games. How do the two firms compete?...
Compare the duopoly outcomes under the Cournot and Stackelberg games. How do the two firms compete? Are the decisions simultaneous or sequential? In which game are profits higher? Which game is more efficient–i.e. leads to a higher quantity and a lower price–when the two firms have the same cost functions?
Two firms compete as a duopoly. The demand they face is P = 100 - 3Q....
Two firms compete as a duopoly. The demand they face is P = 100 - 3Q. The cost function for each firm is C(Q) = 4Q. Determine output, and profits for each firm in a Cournot oligopoly If firms collude, determine output and profit for each firm. If firm 1 cheats on the collusion in item 2, determine output and profit for each firm. Graph the reaction functions and identify the points from parts 1, 2 and 3. Determine output,...
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
Firm A and Firm B compete in the sale of a product with market inverse demand...
Firm A and Firm B compete in the sale of a product with market inverse demand given by P(0) = 160-Q, where Q is market output, and Q = qA + qB (8a-Firm A's output, qB-Firm B's output). Firm A's Total Cost function is given by TCA(qA) 10qA and Firm B's is given by Find the value of Q when Firms A and B Cournot compete to maximize profits (i.e when they simultaneously determine profit maximizing output). At what price...
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 = 200 – 2(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 = $75. The cournot-duopoly equilibrium quantity produced by each firm is _____. Hint: Write your answer to two decimal places.
Question 5 Demand in a market dominated by two firms (a Cournot duopoly) is determined according...
Question 5 Demand in a market dominated by two firms (a Cournot duopoly) is determined according to: P = 200 – 2(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 = $60. The cournot-duopoly equilibrium profit for each firm is _____. Hint: Write your answer to two decimal places. QUESTION 6...
Firm A and Firm B compete in the sale of a product with market inverse demand...
Firm A and Firm B compete in the sale of a product with market inverse demand given by P(Q) = 260-Q, where Q is market output, and Q = 9A + 9B (9A = Firm A's output, 9B = Firm B's output). Firm A's Total Cost function is given by TCA9A) = 209A and Firm B's is given by TCB(9B) = 209B. 15. (20 points) Find the value of Q when Firms A and B Cournot compete to maximize profits...
1. Consider the following asymmetric version of the Cournot duopoly model. Two firms compete by simultaneously choosing the quantities (q, and q2) they produce. Their products are homogeneous, and market demand is given by p- 260-2Q, where Q-q +q2. Firm 1 has a cost advantage; Firm 1 produces at zero cost, while Firm 2 produces at a constant average cost of 40. (The difference in costs is what makes this an asymmetric game.) a. Derive both firms' profit functions, as...
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...
Firm A and Firm B compete in the sale of a product with market inverse demand given by P(0) = 160-Q, where Q is market output, and Q = qA + qB (8a-Firm A's output, qB-Firm B's output). Firm A's Total Cost function is given by TCA(qA) 10qA and Firm B's is given by Find the value of Q when Firms A and B Cournot compete to maximize profits (i.e when they simultaneously determine profit maximizing output). At what price...
Firm A and Firm B compete in the sale of a product with market inverse demand given by P(Q) = 260-Q, where Q is market output, and Q = 9A + 9B (9A = Firm A's output, 9B = Firm B's output). Firm A's Total Cost function is given by TCA9A) = 209A and Firm B's is given by TCB(9B) = 209B. 15. (20 points) Find the value of Q when Firms A and B Cournot compete to maximize profits...
Most questions answered within 3 hours.
-
Consider the reaction, C3 H8 + O2 --> CO2 + H2O. How many
moles of O2...
asked 51 minutes ago -
You and your opponent both roll a fair die. If you both roll the
same number,...
asked 1 hour ago -
In a study of the accuracy of fast food drive-through orders,
Restaurant A had 257 accurate...
asked 1 hour ago -
Identify and describe in detail the four categories of
institutions that could be included in a...
asked 1 hour ago -
In python
class Customer:
def __init__(self, customer_id, last_name, first_name, phone_number, address):
self._customer_id = int(customer_id)
self._last_name =...
asked 1 hour ago -
What is an example of a limitation in implementing a new
ERP system and how it...
asked 1 hour ago -
In a section of 9.7cm of an artery with a radius of 2.6mm there
is a...
asked 1 hour ago -
the two carboxylic acid groups of aspartic acid have different
acidities with pKa values of 2.1...
asked 1 hour ago -
Would CuCO3 aqueous salt combined with calcium chloride
form a solid precipitate? If so, what would...
asked 1 hour ago -
How do ECM Solutions assist in embedding a culture of continuous
improvement in an organization? (Project...
asked 1 hour ago -
Directions
These directions introduce the idea of Essential Questions.
Since this may be a new concept...
asked 1 hour ago -
1.b. Fiscal policy is said to suffer from ‘crowding out’.
Explain what this means and why...
asked 2 hours ago