Suppose that there are two firms producing a homogenous product and competing in Cournot fashion anc let the market demand be given by Q = 360-- Assume for simplicity that each firm operates with zerc %3D total cost. Suppose that two firms collude. How much more profit each firm can obtain relative to Cournot competition? 8000 14400 7200
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- Consider two Cournot oligopolists, firm 1 and firm 2, in a homogenous product market. The market demand is P = 100 – 3Q and each firm has a constant marginal cost MC=10. The Cournot equilibrium quantity for each firm is: a. 7.5 b. 10 c. 5 d.15Cournot Duopoly Suppose that Coca Cola and Pepsi companies compete in quantity sold in a small town. The market demand function for soda in the small town is given by the demand function: Q 10,000 P where Q is the aggregate quantity demanded and P is the price of a can of soda. Let Qp be the number of cans of soda sold by the Pepsi company and Qc be the number sold by the Coca Cola company. Assuming that the marginal cost of producing a can of soda is the same for both companies and equal to 50 cents, find the Nash equilibrium of the soda market in this small town. Illusrate the Nash equilibrium by using the best repsonse functions of both companies. %3DWhat is the homogeneous-good duopoly Cournot equilibrium if the market demand function is Q= 1,800 - 1,000p. and each firm's marginal cost is $0.28 per unit? The Cournot-Nash equilibrium occurs where q, equals and 92 equals (Enter numenic responses using real numbers rounded to two decimai places.) Furthermore, the equilibrium occurs at a price of $ (Round your answer to the nearest penny.)
- bok rint An oligopoly producing a homogeneous product is comprised of three firms that act like a cartel. Assume that these three firms have identical cost schedules. Assume also that if any one of these firms sets a price for the product, the other two firms charge the same price. As long as they all charge the same price they will share the market equally; and the quantity demanded of each will be the same. Below is the total-cost schedule of one of these firms and the demand schedule that confronts it when the other firms charge the same price as this firm. Complete the marginal-cost and marginal- revenue schedules facing the firm. erences Mc Graw Hill Output Total cost Marginal cost Price Quantity demanded Marginal revenue 0 1 23456 7 8 $0 180 300 480 720 1,020 1,380 1,800 2,280 Short Anewor LA JUL 26 $780 720 660 600 540 480 420 360 Toolbar navigation (a) What price would be charged, what output would be produced, and what profit would be made by this firm? (b) If the firms…Consider two Cournot oligopolists, firm 1 and firm 2, in a homogenous product market. The market demand is P = 100 - 3Q and each firm has a constant marginal cost MC=10. The market price of equilibrium and total quantity in the market is: Select one: a. P* 30 and Q* = 20 O b. P* 40 and Q* = 20 ○ c. P* = 40 and Q* = 30 O d. P*20 and Q* = 30Consider a homogenous product duopoly in which the two firms, 1 and 2, compete by choosing their respective quantities, Q1 and Q2. Market demand is given by Q=20−P, where P is the market price and Q= Q1+Q2. Firm 2’s total costs are given by TC2 = 2Q2 , while firm 1’s total costs areTC1= Q1^2 . (a) calculate To which firm would the ability to move first be most valuable? Explain fully. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- The inverse demand function in a market is given by P = 500- Q. The fırms that operate in this market have zero fixed costs, and constant marginal costs equal to MC = 2O. %3DHelp me pleaseSuppose that there are two firms producing a homogenous product and competing in Cournot fashion and let the market demand be given by 0 = 240 -5 Assume for simplicity that each firm operates with zero total cost. Find Cournot Nash equilibrium total surplus 72400 ৪9600 76800 81200
- Suppose that there are two firms producing a homogenous product and competing in Cournot fashion and Assume for simplicity that each firm operates with zero let the market demand be given by Q = 120 - total cost. Suppose that two firms collude. How much more profit each firm can obtain by defecting while the other firm still colludes? $900 $750 $800 $850The market demand curve for mineral water is given by P=20 - Q. If there are two firms that produce mineral water, each with a constant marginal cost of 8 per unit, fill in the entries for each of the four duopoly models indicated in the table. (In the Stackelberg model, assume that firm 1 is the leader.) Instructions: Round your answers to 1 decimal place. Model Shared monopoly Cournot Bertrand Stackelberg 21 4.5 92 4.5 01 + 0₂ P 11 1 ग 2 π 1+ 21. Consider two duopolists who each have a constant marginal cost c = e2 = 3 and face inverse demand P = 15 – Q,where Q = Q1 + Q2 is the total output of both firms. 1. Find the Cournot equilibrium quantity for each firm, the resulting market price, and the profits for each firm. 2. Find the Stackelberg equilibrium quantities for each firm, and the price, and the profits for each firm supposing that Firm 1 is the industry leader. 3. Suppose that Firm 2 figures out a way to lower its marginal cost to ez = 0 while firm 1 still has a marginal cost equal to 1: c = 3. How does this affect the Cournot equilibrium quantities, price, and profits? 4. How does this affect the Stackelberg equilibrium (with Firm 1 still as the leader) quantities, price, and profits?