Question

asume the following inverse demand function p(Q) = 100 - 4Q and that the marginal costs...

asume the following inverse demand function

p(Q) = 100 - 4Q and that the marginal costs are MC = 4

A. given a Cournot competiton, calculate the cournot equilibrium values for price, the quantities and the profits.

B. Given a Bertrand competitionm caluculate the equilibrium values for price, the quantities and the profits.

C. Given a Stackelberg competiton, calculate the equilibrium values for price, the quantities and the profits.

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. 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...
Consider the Cournot duopoly model where the inverse demand function is given by P(Q) = 100-Q...
Consider the Cournot duopoly model where the inverse demand function is given by P(Q) = 100-Q but the firms have asymmetric marginal costs: c1= 40 and c2= 60. What is the Nash equilibrium of this game?
The market demand function is Q=10,000-1,000p. Each firm has a marginal cost of m=$0.16. Firm 1,...
The market demand function is Q=10,000-1,000p. Each firm has a marginal cost of m=$0.16. Firm 1, the leader, acts before Firm 2, the follower. Solve for the Stackelberg-Nash equilibrium quantities, prices, and profits. Compare your solution to the Cournot-Nash equilibrium. The Stackelberg-Nash equilibrium quantities are: q1=___________ units and q2=____________units The Stackelberg-Nash equilibrium price is: p=$_____________ Profits for the firms are profit1=$_______________ and profit2=$_______________ The Cournot-Nash equilibrium quantities are: q1=______________units and q2=______________units The Cournot-Nash equilibrium price is: p=$______________ Profits for the...
1. Consider a market with inverse demand P (Q) = 100 - Q and 5 firms...
1. Consider a market with inverse demand P (Q) = 100 - Q and 5 firms with cost function C(q) = 40q. (a) Find the Cournot equilibrium outputs, price and profit. (b) If 4 firms merge with no efficiency gain, do they increase or decrease their profits? By how much? (c) Is the result in (b) expected? (d) What are the effects of this merger on price and social welfare?
​​​​​ A monopolist faces an inverse demand curve P(Q)= 115-4Q and cost curve of C(Q)=Q2-5Q+100. Calculate...
​​​​​ 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.
Suppose duopolists face the market inverse demand curve P = 100 - Q, Q = q1...
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
Two firms, a and b, compete in a market to sell homogeneous products with inverse demand...
Two firms, a and b, compete in a market to sell homogeneous products with inverse demand function P = 400 – 2Q where Q = Qa + Qb. Firm a has the cost function Ca = 100 + 15Qa and firm b has the cost function Cb = 100 + 15Qb. Use this information to compare the output levels, price, and profits in settings characterized by the following markets: a, Cournot b, Stackelberg c, Bertrand d, Collusion
Two firms, a and b, compete in a market to sell homogeneous products with inverse demand...
Two firms, a and b, compete in a market to sell homogeneous products with inverse demand function P = 400 – 2Q where Q = Qa + Qb. Firm a has the cost function Ca = 100 + 15Qa and firm b has the cost function Cb = 100 + 15Qb. Use this information to compare the output levels, price and profits in settings characterized by the following markets: Cournot Stackelberg Bertrand Collusion
Example 1: Suppose a monopolist faces an inverse demand function as p = 94 – 2q....
Example 1: Suppose a monopolist faces an inverse demand function as p = 94 – 2q. The firm’s total cost function is 1.5q2 + 45q + 100. The firm’s marginal revenue and cost functions are MR(q) = 90 – 4q and MC(q) = 3q + 45. How many widgets must the firm sell so as to maximize its profits? At what price should the firm sell so as to maximize its profits? What will be the firm’s total profits?
Given the Inverse Demand function as P = 1000-(Q1+Q2) and Cost Function of firms as Ci(Qi)...
Given the Inverse Demand function as P = 1000-(Q1+Q2) and Cost Function of firms as Ci(Qi) = 4Qi calculate the following values. A. In a Cournot Oligopoly (PC, QC, πC) i. Find the Price (Pc) in the market, ii. Find the profit maximizing output (Qi*) and iii. Find the Profit (πiC) of each firm. B. In a Stackelberg Oligopoly (PS, QS, πS), i. Find the Price (PS) in the market, ii. Find the profit maximizing output of the Leader (QL*)...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT