This is one question and question "7" need the information in "5" Thank you.
7 Bertrand Now suppose that instead of competing on quantities, the two departments are competing by setting prices following the Bertrand Oligopoly Model. Marginal cost remains the same and total market demand for economics degrees is 72 U. What is the Nash-Bertrand equilibrium for this market? 7.1 Now suppose that the two departments enter the market for online degrees with differentiated products. The marginal cost of each degree drops to S400 for each department. Suppose econ faces a demand function of ge = 10000-200Pe + 100pme . Suppose man. econ faces a demand function of qme 10000 200pme 100pe What is the Nash-Bertrand equilibrium now? 7.2
Homework Answers
Profit of econ is maximized at
Profit (e) = (10000-200pe+100pme-400)pe
FOC: 9600-400pe+100pme=0
Pe= 9600+100pme / 400
Profit of man. econ. is maximized as
Profit( me) = (10000-200pme+100pe-400)pme
FOC: 9600-400pme+100pe =0
Pme= 9600+100pe / 400
Nash equilibrium will be
400pe = 9600+ 100(9600+100pe)/400
400pe = 9600 + 2400 + 25pe
375pe = 12000
Pe= 32
Pme= 32
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This is one question and question "7" need the information in "5" Thank you. 5 Cournot Suppose there are two departments selling economics degrees in one market competing fol- lowing...
This question is one question. Thank you. 5 Cournot Suppose there are two departments selling economics...
This question is one question. Thank you.
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pls
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I only need answers for the Bertrand Nash Equilibrium section. please provide answers with as much...
I only need answers for the Bertrand Nash Equilibrium
section.
please provide answers with as much details as possible. Thank
you
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This question is one question. Thank you.
5 Cournot Suppose there are two departments selling economics degrees in one market competing fol- lowing the rules of the Cournot Oligopoly Model econ and man. econ. Suppose market demand for an economics degree is 7200-2p. Suppose both departments marginal cost is $3000 per degree. What is each department's residual demand curve? 5.1 5.2 What is each department's best response functions? 5.3 What is the Nash-Cournot equilibrium in this market? What is the...
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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?...
I only need answers for the Bertrand Nash Equilibrium
section.
please provide answers with as much details as possible. Thank
you
Oligopoly There are two firms competing in the market for Airplanes - Boeing and Airbus. The market demand is given by Q = 120 - P. Boeing has lower Marginal Costs of production than Airbus. Thus MCB = $20, MCA = $40. Assume that TFC = $0 for both firms. (Think of price being in thousands.) Boeing a) Derive...
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