Question

Consider two market segments with the following demand functions:

Market segment 1: Q1 P= 10-2P

Market segment 2: Q2 P= 10-4P

Suppose that MC of production is 6.

What is the optimal pricing policy for this firm?

Answer #1

If you are satisfied with a answer plz upvote thank you i really need that

A monopoly serves two markets with demand functions of
Q1(p) = X-2p
and Q2(p) = 10X + 50 - 2p,
where X is 5. Determine the optimal
two-part tariff for each market if the marginal costs are
10?

Consider the Cournot model with market demand function p(q_1,
q_2)=17-q_1-q_2p(q1,q2)=17−q1−q2, and two different cost
functions for each firm: c_1(q_1)=q_1c1(q1)=q1,
c_2(q_2)=3q_2c2(q2)=3q2.
In the pure NE, firm 1 produces:
and firm 2 produces:
In equilibrium, the market price is:
Show your steps. Remember to write down the profit function of
each firm and solve for their best response functions.
Which firm has a bigger market share? Explain.

Consider three firms that face market demand P = 101 - Q. The
cost functions are C1(q1)=6(q1^2) for firm 1, C2(q2)=4(q2^2) for
firm 2, and C3(q3)=4q(3^2) for firm 3. Firm 1 is the Stackelberg
leader and firms 2 and 3 are the followers. What is firm 1's
equilibrium output q1^*?

3. (i) A monopolist faces the following demand and total cost
functions: Q1 = 65 -1/2P, TC = Q2 + 10Q + 50
(a) Calculate the profit maximizing output and price of the
monopolist. Calculate the resulting profit. (12 points)
(b) Suppose the government imposes an excise tax of $30 on the
production and sale of the product. Calculate the resulting optimal
profit maximizing output and price for the monopolist. Also
determine the level of profit. (12 points)
(c) If...

Consider the Stackelberg model with demand function p(q_1,
q_2)=10-q_1-q_2p(q1,q2)=10−q1−q2 and cost functions
c_1(q_1)=q_1c1(q1)=q1, c_2(q_2)=2q_2c2(q2)=2q2.
Draw the game tree and solve for the pure SPE.
Write down each firm's strategy in the pure SPE here: Firm 1:,
Firm 2:

Consider the following supply and demand functions qD= 8-p qS=
-4 +2p Assuming the market is distortion free, what is the total
welfare level? W= ??

Consider a duopoly with two firms with the cost functions:
Firm 1: C1(q1)=5q1
Firm 2: C2(q2)=5q2
The firms compete in a market with inverse demand
p = 300 - 8Q
where Q=q1+q2. The firms compete in a
Cournot fashion by choosing output simultaneously.
What is the Nash-Cournot equilibrium output of firm 1? Round to
nearest .1

Consider two identical firms competing in a market described
by:
• (Inverse) Demand: P = 50 − Q , where Q = q1 + q2
• Cost Firm 1: C1 = 20q1 +q1^2
• Cost Firm 2: C2 = 20q2 + q2^2
a. (1 point) What is firm 1’s marginal cost? Firm 2’s marginal
cost? What can you observe about these two firms?
b.(2 points) What are the equilibrium price (P∗), production
quantities (q∗1,q∗2), and profits(π∗1,π∗2), if these firms are...

Consider a market with two firms whose products are identical.
The market demand curve is p = a − bq where a > 0 and b > 0,
and where q = q1 + q2. Firm i’s profits are πi(q1, q2) = pqi − cqi
. Assume that the firms move in sequence, with firm 1 choosing q1
first, and then firm 2 choosing q2; however, assume firm 2 observes
q1 before choosing q2.
(a) What is a Nash equilibrium...

Consider a market with two identical firms. The market demand is
P = 26 – 2Q, where Q = q1 + q2. MC1 = MC2 = 2.
1. Solve for output and price with collusion.
2. Solve for the Cournot-Nash equilibrium.
3. Now assume this market has a Stackelberg leader, Firm 1.
Solve for the quantity, price, and profit for each firm.
4. Assume there is no product differentiation and the firms
follow a Bertrand pricing model. Solve for the...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 2 minutes ago

asked 11 minutes ago

asked 18 minutes ago

asked 22 minutes ago

asked 22 minutes ago

asked 22 minutes ago

asked 23 minutes ago

asked 24 minutes ago

asked 24 minutes ago

asked 29 minutes ago

asked 29 minutes ago