Consider three firms that face market demand P=98-Q The cost functions are c1(q1)= 6q^2 for firm 1,...

Consider three firms that face market demand P=98-Q The cost functions are c1(q1)= 6q^2 for firm 1, c2(q2)= 2q^2 for firm 2, and c3(q3)= 2q^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?

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Rahul Sunny answered 1 year ago

Consider three firms that face market demand P= 99-Q . The cost functions are C1(q1)=6q1*2for firm...

Consider three firms that face market demand P= 99-Q . The cost functions are C1(q1)=6q1*2for firm 1, C2=2q2*2( C2 = (2q2)square ) for firm 2, andC3(q3)=2q3*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?

Consider three firms that face market demand P= 99-Q . The cost functions are C1(q1)=6q1*2for firm...

Consider three firms that face market demand P= 99-Q . The cost functions are C1(q1)=6q1*2for firm 1, C2=2q2*2( C2 = (2q2)square ) for firm 2, andC3(q3)=2q3*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?

Consider three firms that face market demand P= 99-Q . The cost functions are C1(q1)=6q1*2for firm...

Consider three firms that face market demand P= 99-Q . The cost functions are C1(q1)=6q1*2for firm 1, C2=2q2*2( C2 = (2q2)square ) for firm 2, andC3(q3)=2q3*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?

Consider 2 firms facing the demand curve: P=90-5Q, where Q =Q1+Q2 The firms' cost functions are...

Consider 2 firms facing the demand curve: P=90-5Q, where Q =Q1+Q2 The firms' cost functions are C1(Q1)=15+Q1 and C2(Q2)=15+30Q2 How much should Firm 1 be willing to pay Firm 2 if collusion is illegal but a takeover is not? Firm 1 should be willing to pay __.

Q1.Two firms produce in a market with demand P=100-Q. The marginal cost for firm 1 is...

Q1.Two firms produce in a market with demand P=100-Q. The marginal cost for firm 1 is constant and equals 10. The marginal cost of firm 2 is also constant and it equals 25. Firm 1 sets output first. After observing firm 1's output, firm 2 sets its output. (Please pay attention. Read the brackets correctly.) 1a. For firm 2, the best response is R₂(q₁)=(A-q₁)/2. The value for A is? 1b. Solve for the Stackelberg equilibrium. The quantity sold by firm...

1. Duopoly quantity-setting firms face the market demand: P = 600–(1/2)Q where Q = Q1 +...

1. Duopoly quantity-setting firms face the market demand: P = 600–(1/2)Q where Q = Q1 + Q2. Each firm has a marginal cost of $60 per unit and zero fixed costs. (a) What are the quantities chosen by each firm in the Cournot equilibrium? What is the market price? (b) What are the quantities chosen by each firm in the Stackelberg equilibrium, when Firm 1 moves first? What is the market price? How does this market price compare to the...

Duopoly quantity-setting firms face the market demand: P = 300–Q where Q = Q1 + Q2....

Duopoly quantity-setting firms face the market demand: P = 300–Q where Q = Q1 + Q2. Each firm has a marginal cost of $30 per unit and zero fixed costs. (a) What are the quantities chosen by each firm in the Cournot equilibrium? What is the market price? (b) What are the quantities chosen by each firm in the Stackelberg equilibrium, when Firm 1 moves first? What is the market price? How does this market price compare to the market...

Consider a market that faces the following market supply and demand functions Q S = 2 + p

Consider a market that faces the following market supply and demand functions Q S = 2 + p Q D = 10- 1/2 p where identical firms face the total cost function of T C = 4 + q + q2 a) What is the market price? b) Derive the average variable cost, average total cost, and marginal cost functions. c) In the short run, how much does each firm produce? d) In the short run, how much economic profit...

7. Bertrand duopolists, Firm 1 and Firm 2, face inverse market demand P= 50-Q. and both...

7. Bertrand duopolists, Firm 1 and Firm 2, face inverse market demand P= 50-Q. and both have marginal cost, MC=$20. The equilibrium output this market will be: a) 15 b) 20 c) 30 d) 40

Two firms face the following demand curve: P = 50 – 5Q, where Q = Q1...

Two firms face the following demand curve: P = 50 – 5Q, where Q = Q1 + Q2. The firms cost functions are C1 (Q1) = 20 + 10Q1 for firm 1 and C2 (Q2)= 10 + 12Q2 for firm 2. Suppose both firms have entered the industry. What is the joint profit maximizing level of output? [5Marks] What is each firms equilibrium output and profit if they behave non-cooperatively? Use the Cournot model. [5Marks] c. How much should Firm...

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Consider three firms that face market demand P=98-Q The cost functions are c1(q1)= 6q^2 for firm 1,...

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Consider three firms that face market demand P= 99-Q . The cost functions are C1(q1)=6q1*2for firm...

Consider three firms that face market demand P= 99-Q . The cost functions are C1(q1)=6q1*2for firm...

Consider three firms that face market demand P= 99-Q . The cost functions are C1(q1)=6q1*2for firm...

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