Question

The duopolist dilemma is that each firm would make more profit if both picked the _______...

The duopolist dilemma is that each firm would make more profit if both picked the _______ price, but both firms pick the _____ price. Explain why they do this.

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
Explain duopolit’s dilemma. Your answer should explain as to why both the competing firms end up...
Explain duopolit’s dilemma. Your answer should explain as to why both the competing firms end up with low price option while they optimally could have gone for the high price and high profit.
1. There are only two firms producing identical goods. Each firm has the cost structure TCi...
1. There are only two firms producing identical goods. Each firm has the cost structure TCi = 2qi2 + 40qi + 11552 which makes the firm’s MCi = 4qi + 40 for i = 1,2 for the two firms. These are the only two firms in the market where the MARKET demand for the good = P = -3Q+ 800. a) Explain why each firm producing q1 = q2 = 47.5 generates the monopoly outcome. Find the market price and...
Q) There are two firms in the Waves, Muscat, Cyber Space pvt. (CS) and IT Solutions...
Q) There are two firms in the Waves, Muscat, Cyber Space pvt. (CS) and IT Solutions (ITS). They collude to share the market equally. They jointly set a monopoly price and split the quantity demanded at that price. Here are their options:               i.    They continue to cooperate (no cheating) and make $15 million each in profits.             ii.    One firm cheats and the other does not. The firm that cheats makes a profit                     of $20 million whereas the...
In a perfectly competitive firm the firm profit maximizes where P=MR=MC . In a monopoly firm...
In a perfectly competitive firm the firm profit maximizes where P=MR=MC . In a monopoly firm , the firm profit maximizes where P> MR = MC. Why does that allow a monopoly firm to make a larger economic profit in many cases? Without anti-trust laws, why would firms try to eliminate competing firms? (The attempt by ATT to buy out Direct TV for example.)
Make each awswer as long as you can i would like most infomation you know anout...
Make each awswer as long as you can i would like most infomation you know anout 1-5 thank you Explain the following for each market structure example: 1. Why do you think each firm would be operating in that market structure? Justify your answer. 2. Would the different firms have market power or would they be price takers? 3. How is market structure determined? 4. How much product differentiation would each firm/industry use to market their product? 5. In which...
Two firms operate in the market for a certain hair care product. If they both have...
Two firms operate in the market for a certain hair care product. If they both have a large advertising budget, they each earn profit of $600. If they both have a low advertising budget, they each earn profit of $400. If one firm has a large advertising budget and the other low, then the high advertising firm earns profit of $700 while the low advertising firm earns profit of $200. Write out the payoff matrix for this game. Does either...
Explain why a firm can earn more profit by price discrimination than from setting a uniform...
Explain why a firm can earn more profit by price discrimination than from setting a uniform price.
Explain why in the long run, perfectly competitive firms will make no profit. What is the...
Explain why in the long run, perfectly competitive firms will make no profit. What is the long run equilibrium condition for a firm? ( first assume firm are making positive profits and then assume some firms are making negative profits... graphs).
Two competing firms make identical products with unlimited capacity. In addition, each firm can choose to...
Two competing firms make identical products with unlimited capacity. In addition, each firm can choose to sell a repair contract that goes along with each product sold. Both firms have the same manufacturing costs: product costs $0.50 per unit to produce, and each repair contract sold costs its seller $0.10. The market consists of 100 buyers each of whom have a reserve price of $3.00 for one product. However, not all buyers value the repair contract in the same way....
Two competing firms make identical widgets with unlimited capacity. In addition, each firm can choose to...
Two competing firms make identical widgets with unlimited capacity. In addition, each firm can choose to sell a repair contract that goes along with each widget sold. Both firms have the same manufacturing costs: widget costs $0.50 per unit to produce, and each repair contract sold costs its seller $0.10. The market consists of 100 buyers each of whom have a reserve price of $3.00 for one product. However, not all buyers value the repair contract in the same way....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT