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Question 7 1 pts Two firms produce closely-related products, and have marginal costs MC1=10 and MC2=20. The market...
Two firms produce closely-related products and have marginal costs MC1=10 and MC2=20. The market supplied by...
Two firms produce closely-related products and have marginal
costs MC1=10 and MC2=20. The market supplied by firm 1 has demand
Q1=100-2p1+p2, while 2's market has demand Q2=100+p1-2p2. The two
firms are engaged in Bertrand price competition.
Two firms produce closely-related products, and have marginal costs MC1-10 and MC2-20. The market supplied by firm 1 has demand Q1 = 100-2p1+P2, while 2's market has demand Q2=100+p1- 2p2. The two firms are engaged in Bertrand price competition. 3(a)What is the intercept of...
Two firms produce closely-related products, and have marginal costs MC1 10 and MC2=20. The market supplied...
Two firms produce closely-related products, and have marginal costs MC1 10 and MC2=20. The market supplied by firm 1 has demand Q1-100-2p1+p2, while 2's market has demand Q2-100+p1 2p2. The two firms are engaged in Bertrand price competition. 3(a)What is the intercept of firm 1's price reaction curve? (One digit after the decimal point only) Question 8 1 pts 3(b) What is the slope of firm 1's price reaction curve? (One digit after the decimal point only) Question 9 1...
Two firms produce closely-related products, and have marginal costs MC1=10 and MC2=20. The market supplied by...
Two firms produce closely-related products, and have marginal costs MC1=10 and MC2=20. The market supplied by firm 1 has demand Q1=100-2p1+p2, while 2's market has demand Q2=100+p1-2p2. The two firms are engaged in Bertrand price competition. 3(a)What is the intercept of firm 1's price reaction curve? (One digit after the decimal point only) 3(b) What is the slope of firm 1's price reaction curve? (One digit after the decimal point only) 3(c) What is the intercept of firm 2's price...
Suppose that identical duopoly firms have constant marginal costs of $16 per unit. Firm 1 faces...
Suppose that identical duopoly firms have constant marginal costs of $16 per unit. Firm 1 faces a demand function of q1 130-2p1+1p2 where q1 is Firm 1's output, p1 is Firm 1's price, and p2 is Firm 2's price. Similarly, the demand Firm 2 faces is 2 130-2P2+ 1p1 Solve for the Bertrand equilibrium. Note that OTI _-130-2p1 + 1p2-2p1 +32-0 op1 and oP2 p 130-2p2+ 1p1-2p2+320 In equilibrium, p1 equals $and p2 eqs (Enter numeric responses using integers.)
Suppose there are two firms in a market producing differentiated products. Both firms have MC=0. The...
Suppose there are two firms in a market producing differentiated products. Both firms have MC=0. The demand for firm 1 and 2’s products are given by: q1(p1,p2) = 5 - 2p1 + p2 q2(p1,p2) = 5 - 2p2 + p1 a. First, suppose that the two firms compete in prices (i.e. Bertrand). Compute and graph each firm’s best response functions. What is the sign of the slope of the firms’ best-response functions? Are prices strategic substitutes or complements? b. Solve...
Consider a market in which two firms i = 1,2 produce a homogeneousproduct at constant marginal...
Consider a market in which two firms i = 1,2 produce a homogeneousproduct at constant marginal cost c= 4, facing total demand described by the linear inverse demand curve P= 16−Q. First assume that the firms compete by simultaneously choosing prices a la Bertrand. a. Suppose that F1 expects F2 to set some price p2 above the marginal cost c but below the monopoly price pm. What is F1’s best response BR1(p2) to this price p2? b. What is the...
The market for widgets consists of two firms that produce identical products. Competition in the market...
The market for widgets consists of two firms that produce identical products. Competition in the market is such that each of the firms independently produces a quantity of output, and these quantities are then sold in the market at a price that is determined by the total amount produced by the two firms. Firm 2 is known to have a cost advantage over firm 1. A recent study found that the (inverse) market demand curve faced by the two firms...
Please help Question 12 0.16 pts If firms in a competitive market are making positive economic...
Please help
Question 12 0.16 pts If firms in a competitive market are making positive economic profits, the long-run market supply curve O is above the point where the short-run market supply curve and the demand curve intersect. O shifts downward. O and the short-run market supply curve and the demand curve all intersect at the same point. O shifts upward. O is below the point where the short-run market supply curve and the demand curve intersect. Question 13 0.16...
6. There are two firms in a market with marginal cost functions given by MC:(9) =...
6. There are two firms in a market with marginal cost functions given by MC:(9) = 59 MC2(q) = q. Market demand is given by D(p) = 20 - 2p. (a) Obtain the competitive equilibrium output and price. Calculate consumer surplus and each firm's producer surplus. (b) Derive the monopoly price when only firm 1 operates. Calculate consumer surplus and each firm's producer surplus. (c) Derive the monopoly price when only firm 2 operates. (d) Now assume that a monopolist...
Exercise: Consider a market in which two firms i = 1, 2 produce a homogeneous product at constant marginal cost c = 4, f...
Exercise: Consider a market in which two firms i = 1, 2 produce a homogeneous product at constant marginal cost c = 4, facing total demand described by the linear inverse demand curve P = 16 − Q. First assume that the firms compete by simultaneously choosing prices a la Bertrand. 1. Suppose that F1 expects F2 to set some price p2 above the marginal cost c but below the monopoly price p m. What is F1’s best response BR1(p2)...
Two firms produce closely-related products and have marginal
costs MC1=10 and MC2=20. The market supplied by firm 1 has demand
Q1=100-2p1+p2, while 2's market has demand Q2=100+p1-2p2. The two
firms are engaged in Bertrand price competition.
Two firms produce closely-related products, and have marginal costs MC1-10 and MC2-20. The market supplied by firm 1 has demand Q1 = 100-2p1+P2, while 2's market has demand Q2=100+p1- 2p2. The two firms are engaged in Bertrand price competition. 3(a)What is the intercept of...
Two firms produce closely-related products, and have marginal costs MC1 10 and MC2=20. The market supplied by firm 1 has demand Q1-100-2p1+p2, while 2's market has demand Q2-100+p1 2p2. The two firms are engaged in Bertrand price competition. 3(a)What is the intercept of firm 1's price reaction curve? (One digit after the decimal point only) Question 8 1 pts 3(b) What is the slope of firm 1's price reaction curve? (One digit after the decimal point only) Question 9 1...
Suppose that identical duopoly firms have constant marginal costs of $16 per unit. Firm 1 faces a demand function of q1 130-2p1+1p2 where q1 is Firm 1's output, p1 is Firm 1's price, and p2 is Firm 2's price. Similarly, the demand Firm 2 faces is 2 130-2P2+ 1p1 Solve for the Bertrand equilibrium. Note that OTI _-130-2p1 + 1p2-2p1 +32-0 op1 and oP2 p 130-2p2+ 1p1-2p2+320 In equilibrium, p1 equals $and p2 eqs (Enter numeric responses using integers.)
Please help
Question 12 0.16 pts If firms in a competitive market are making positive economic profits, the long-run market supply curve O is above the point where the short-run market supply curve and the demand curve intersect. O shifts downward. O and the short-run market supply curve and the demand curve all intersect at the same point. O shifts upward. O is below the point where the short-run market supply curve and the demand curve intersect. Question 13 0.16...
6. There are two firms in a market with marginal cost functions given by MC:(9) = 59 MC2(q) = q. Market demand is given by D(p) = 20 - 2p. (a) Obtain the competitive equilibrium output and price. Calculate consumer surplus and each firm's producer surplus. (b) Derive the monopoly price when only firm 1 operates. Calculate consumer surplus and each firm's producer surplus. (c) Derive the monopoly price when only firm 2 operates. (d) Now assume that a monopolist...
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