Question

1. Suppose a market is described by demand P = 100 - 20 and there are...

1. Suppose a market is described by demand P = 100 - 20 and there are two firms engaged in Cournot Competition each with a MC = 10. What is the consumer surplus in this market?

A. 900
B. 1200
C. 1500
D. 1800

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. Suppose a market is described by demand P = 100 - 20 and there are...
1. Suppose a market is described by demand P = 100 - 20 and there are two firms engaged in Cournot Competition each with a MC = 10. What is the consumer surplus in this market? A. 900 B. 1200 C. 1500 D. 1800 P= 100 - 2Q
1. Suppose a market is described by demand P = 100 - 2Q and there are...
1. Suppose a market is described by demand P = 100 - 2Q and there are two firms engaged in Stackelberg Competition each with a MC = 10 What is the consumer surplus in this market (Round market output to the nearest integer)? 1. 828 2. 1916 3. 1156 4. 1811
1. Let demand for car batteries be such that Q= 100 - 2P. Assume constant marginal...
1. Let demand for car batteries be such that Q= 100 - 2P. Assume constant marginal costs of 15. Compute the equilibrium price, quantity, consumer surplus, producer surplus and if relevant deadweight loss for: 1) A perfectly competitive firm 2) A monopoly 3) Two firms engaged in Cournot Competition 4) Two firms engaged in Bertrand Competition
Cournot Competition The market demand for a good is represented by P = 400 ? 20Q....
Cournot Competition The market demand for a good is represented by P = 400 ? 20Q. Firms are symmetric with cost functions C = 30q. Assume the firms compete in a Cournot Oligopoly (i.e., simultaneous choices of quantity). (d) Compute prices quantities, and consumer surplus under perfect competition in which each firm in the market takes price as a given. (e) Now, think of a case where there are N firms. What are equilibrium prices and quantities, and how do...
Suppose that market demand curve is described by y = 10 - p, and a Firms...
Suppose that market demand curve is described by y = 10 - p, and a Firms cost function is C(y) = 10y - 2y^3/2 (a) Calculate and draw the marginal cost and the average cost curves. (b) What is the total surplus maximizing output level? Can it be a competitive market equilibrium? Why or why not? (c) Suppose that the Firm is the monopolist. How much does the monopolist want to produce? What is the market price? How much is...
Consider a market with 2 identical firms (a and b). The market demand is P =...
Consider a market with 2 identical firms (a and b). The market demand is P = 14 - Q where Q = Qa + Qb. For both firms AC=MC= 2. A. Solve for the Cournot-Nash reaction functions of each firm. B. Solve for the Cournot- Nash equilibrium. Solve for Q, Qa, Qb, Price, and each firms profit. C. Compare the Cournot-Nash equilibrium with perfect competition, and monopoly (you can refer to your results from question 2, if you’ve already done...
Consider a market with 2 identical firms (a and b). The market demand is P =...
Consider a market with 2 identical firms (a and b). The market demand is P = 14 - Q where Q = Qa + Qb. For both firms AC=MC= 2. A. Solve for the Cournot-Nash reaction functions of each firm. B. Solve for the Cournot- Nash equilibrium. Solve for Q, Qa, Qb, Price, and each firms profit. C. Compare the Cournot-Nash equilibrium with perfect competition, and monopoly (you can refer to your results from question 2, if you’ve already done...
1. Consider a market with inverse demand P (Q) = 100 Q. A monopolist with linear...
1. Consider a market with inverse demand P (Q) = 100 Q. A monopolist with linear cost C(Q) = 20Q serves this market. (a) Find the monopolistís optimal price and quantity. (b) Find the price, quantity, proÖt, consumer surplus, and social welfare under perfect competition. (c) Find the optimal proÖt, consumer surplus, social welfare and the deadweight loss for monopoly. (d) What is the % loss in social welfare as we move from perfect competition to monopoly.
1. Consider a market with inverse demand P (Q) = 100 Q and two firms with...
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...
Suppose that market demand for golf balls is described by Q = 90 − 3P, where...
Suppose that market demand for golf balls is described by Q = 90 − 3P, where Q is measured in kilos of balls. There are two firms that supply the market. Firm 1 can produce a kilo of balls at a constant unit cost of $15 whereas firm 2 has a constant unit cost equal to $10. a)Suppose the firms compete in quantities. How much does each firm sell in a Cournot equilibrium? What is the market price and what...