Question

Consider an industry consisting of two firms producing an identical product. The inverse market demand equation...

  1. Consider an industry consisting of two firms producing an identical product. The inverse market demand equation is P = 100 − 2Q. The total cost equations for firms 1 and 2 are TC1 = 4Q1 and TC2 = 4Q2, respectively. Suppose that the two firms are Cournot rivals. Firm 2 will earn a profit of:

    1. $512.

    2. $732.

    3. $836.

    4. $1,014.

    5. None of the above.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
SCENARIO 3: Consider an industry consisting of two firms producing an identical product. The inverse market...
SCENARIO 3: Consider an industry consisting of two firms producing an identical product. The inverse market demand equation is P = 100 − 2Q. The total cost equations for firms 1 and 2 are TC1 = 4Q1 and TC2 = 4Q2, respectively. Refer to SCENARIO 3. Suppose that the two firms are Cournot rivals. Firm 1 will earn a profit of: a. $512. b. $732. c. $836. d. $1,014. e. None of the above.
SCENARIO 3: Consider an industry consisting of two firms producing an identical product. The inverse market...
SCENARIO 3: Consider an industry consisting of two firms producing an identical product. The inverse market demand equation is P = 100 − 2Q. The total cost equations for firms 1 and 2 are TC1 = 4Q1 and TC2 = 4Q2, respectively. Refer to SCENARIO 3. Suppose that the two firms are Cournot rivals. The equilibrium level of output for firm 1 is: a. 8. b. 16. c. 24. d. 32. e. None of the above.
Consider an industry consisting of two firms producing an identical product. The inverse market demand equation...
Consider an industry consisting of two firms producing an identical product. The inverse market demand equation is P = 100 − 2Q. The total cost equations for firms 1 and 2 are TC1 = 4Q1 and TC2 = 4Q2, respectively. Firm 1 is the Stackelberg leader and firm 2 is the Stackelberg follower. The output of the Stackelberg follower is: 6. 12. 24. 48. None of the above.
SCENARIO 3: Consider an industry consisting of two firms producing an identical product. The inverse market...
SCENARIO 3: Consider an industry consisting of two firms producing an identical product. The inverse market demand equation is P = 100 − 2Q. The total cost equations for firms 1 and 2 are TC1 = 4Q1 and TC2 = 4Q2, respectively. 9. Refer to SCENARIO 3. Suppose that the two firms are Cournot rivals. Firm 1’s reaction function is: a. Q1 = 12 − Q2. b. Q1 = 12 − 0.25Q2. c. Q1 = 24 − 0.5Q2. d. Q1...
Consider an industry consisting of two firms producing an identical product. The inverse market demand equation...
Consider an industry consisting of two firms producing an identical product. The inverse market demand equation is P = 100 − 2Q. The total cost equations for firms 1 and 2 are TC1 = 4Q1 and TC2 = 4Q2, respectively. Firm 1 is the Stackelberg leader and firm 2 is the Stackelberg follower. The profit of the Stackelberg follower is: $864. $576. $432. $288. $1,152.
SCENARIO 3: Consider an industry consisting of two firms producing an identical product. The inverse market...
SCENARIO 3: Consider an industry consisting of two firms producing an identical product. The inverse market demand equation is P = 100 − 2Q. The total cost equations for firms 1 and 2 are TC1 = 4Q1 and TC2 = 4Q2, respectively. Refer to SCENARIO 3. Suppose that the two firms are Bertrand rivals. The equilibrium level of output for firm 1 is: a. 8. b. 10. c. 12. d. 24. e. None of the above.
SCENARIO 3: Consider an industry consisting of two firms producing an identical product. The inverse market...
SCENARIO 3: Consider an industry consisting of two firms producing an identical product. The inverse market demand equation is P = 100 − 2Q. The total cost equations for firms 1 and 2 are TC1 = 4Q1 and TC2 = 4Q2, respectively. Refer to SCENARIO 3. Firm 1 is the Stackelberg leader and firm 2 is the Stackelberg follower. The profit of the Stackelberg leader is: a. $288. b. $432. c. $486. d. $576. e. None of the above.
SCENARIO 3: Consider an industry consisting of two firms producing an identical product. The inverse market...
SCENARIO 3: Consider an industry consisting of two firms producing an identical product. The inverse market demand equation is P = 100 − 2Q. The total cost equations for firms 1 and 2 are TC1 = 4Q1 and TC2 = 4Q2, respectively. 9. Refer to SCENARIO 3. Suppose that the two firms are Cournot rivals. Firm 1’s reaction function is: a. Q1 = 12 − Q2. b. Q1 = 12 − 0.25Q2. c. Q1 = 24 − 0.5Q2. d. Q1...
The geegaw industry consists of two Cournot competitors producing an identical product. The inverse demand equation...
The geegaw industry consists of two Cournot competitors producing an identical product. The inverse demand equation is P=591-4Q. The total cost equations of the two firms are: TC_1=15Q_1 TC_2=31Q_2. a. Determine the total revenue equation for each firm. b. What is the reaction function of each firm? c. What is the Cournot-Nash equilibrium level of output? d. What is the market-determined price of geegaws? e. Calculate each firm’s total profit.
2. Consider two identical firms in a Cournot competition. The market demand is P = a...
2. Consider two identical firms in a Cournot competition. The market demand is P = a – bQ. TC1 = cq1 = TC2 = cq2 . a. Find the profit function of firm 1. b. Maximize the profit function to find the reaction function of firm 1. c. Solve for the Cournot-Nash Equilibrium. d. Carefully discuss how the slope of the demand curve affects outputs and price.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT