Question

24. Cournot duopolists face a market demand curve given by P = 90 - Q where Q is total market demand. Each firm can produce output at a constant marginal cost of 30 per unit. There are no fixed costs. Determine the (1) equilibrium price, (2) quantity, and (3) economic profits for the total market, (4) the consumer surplus, and (5) dead weight loss.

25. If the duopolists in question 24 behave according to the Stackelberg Leader-Follower model, determine the (1) equilibrium price, (2) quantity, and (3) economic profits for the total market and (4) the consumer surplus, and (5) dead weight loss.

26. If the duopolists in question 24 behave, instead, according to the Bertrand model, determine the (1) equilibrium price, (2) quantity, and (3) economic profits for the total market and (4) the consumer surplus, and (5) dead weight loss.

27. If the duopolists in question 24 behave as a shared monopoly, determine the (1) equilibrium price, (2) quantity, and (3) economic profits for the total market and (4) the consumer surplus, and (5) dead weight loss.

Answer #1

26. If the duopolists in question 24behave, instead,
according to the Bertrand model, determine the (1) equilibrium
price, (2) quantity, and (3) economic profits for the total market
and (4) the consumer surplus, and (5) dead weight
loss.
24. Cournot duopolists face a market demand curve given by P =
90 Q where Q is total market demand. Each firm can produce output
at a constant marginal cost of 30 per unit.There are no fixed
costs.Determine the (1)equilibrium price, (2)...

Suppose duopolists face the market inverse demand curve P = 100
- Q, Q = q1 + q2, and both firms have a constant marginal cost of
10 and no fixed costs. If firm 1 is a Stackelberg leader and firm
2's best response function is q2 = (100 - q1)/2, at the
Nash-Stackelberg equilibrium firm 1's profit is $Answer

Suppose the market demand for a commodity is given by the
download sloping linear demand function:
P(Q) = 3000 - 6Q
where P is a price and Q is quantity. Furthermore, suppose the
market supply curve is given by the equation:
P(Q) = 4Q
a) Calculate the equilibrium price, quantity, consumer surplus
and producer surplus.
b) Given the equilibrium price calculated above (say's P*),
suppose the government imposes a price floor given by P' > P*.
Pick any such P'...

A market has a demand curve given by P = 800 – 10Q where P =
the price per unit and Q = the number of units. The supply curve is
given by P =100 + 10Q.(10 points) Graph the demand and supply curves and calculate
the equilibrium price and quantity in this market.(5 points) Calculate the consumer surplus at equilibrium.(5 points) Calculate the producer surplus at equilibrium.(5
points)(5 points) Calculate the total surplus at equilibrium

Duopolists share a market in which the market demand is P = 10 –
Q, where Q = q1 + q2. The firms’ cost functions are C1 = 4 + 2q1
and C2 = 3 + 3q2.
d) If firms compete over price in Bertrand competition, compute
total output and profit.

1. Consider a market with inverse demand P (Q) = 100 Q and two
firms with cost function C(q) = 20q.
(A) Find the Stackelberg equilibrium outputs, price and total
profits (with firm 1 as the leader).
(B) Compare total profits, consumer surplus and social welfare
under Stackelberg and Cournot (just say which is bigger).
(C) Are the comparisons intuitively expected?
2. Consider the infinite repetition of the n-firm Bertrand game.
Find the set of discount factors for which full...

A monopolist faces an inverse demand curve P(Q)= 115-4Q and
cost curve of C(Q)=Q2-5Q+100.
Calculate industry output, price, consumer surplus, industry
profits, and producer surplus if this firm operated as a
competitive firm and sets price equal to marginal cost.
Calculate the dead weight loss sue to monopoly.

Assume that the demand
curve D(p) given below is the market demand for apples:
Q=D(p)=320−12pQ=D(p)=320-12p, p
> 0
Let the market supply
of apples be given by:
Q=S(p)=60+15pQ=S(p)=60+15p,
p > 0
where p is the price
(in dollars) and Q is the quantity. The functions D(p) and S(p)
give the number of bushels demanded and supplied.
What is the
consumer surplus at the equilibrium price and
quantity?
Round the equilibrium
price to the nearest cent, use that rounded price to...

Consider a duopolistic market in which the market demand curve
is ?=90−3? and the marginal cost functions of the firms are given
by ??1=??2=10.
a. Suppose this market is analyzed using a Cournot model. Determine
the output level of each firm and the market price.
b. Suppose this market is analyzed using a Stackelberg model where
firm 1 is the leader and firm 2 is the follower. Determine the
output level of each firm and the market price.
c. Based...

Given the demand and supply curves
p=50 - 0.0001 q^2
p=10 + 0.00015 q^2
Q# provide the following graphically and numerically. (When you
finish, you will have 8 different graphs. )
1) The equilibrium quantity and price
2 )The total revenue if this number of items are sold at this price
(rectangle)
3)The maximum revenue that could result from the sale of this
number of items (area under demand function)
4)The minimum revenue that could result in the production of...

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