Question
In: Economics
Assume a duopoly market with quantity competition. The market inverse demand is the following: P =...
Assume a duopoly market with quantity competition. The market inverse demand is the following: P = 497 - (Q1 + Q2) Where Q1 and Q2 represent the production of firm 1 and 2, respectively. Assume that both firms have the same ATC = MC = 21. If this market was a competitive market rather than a duopoly how much higher would the market quantity be under a competitive marekt than under a duopoly? (hint: get the competitive market quantity and subtract the duopoly quantity, input only numbers in your answer).
Solutions
Rahul Sunny answered 9 months agoRelated Solutions
Refer to a duopoly market in which the inverse demand function is given by P =...
Refer to a duopoly market in which the inverse demand
function is given by P = 96 − Q. Firm 1's cost function is
c(q1) = 6q1 + 300, and firm 2's cost function
is c(q2) = 6q2 + 600 (such that each firm has
MC = 6).
Q1: The outputs of the two firms in Cournot-Nash
equilibrium will be:
1) q1 = 45 and q2 = 0.
2) q1 = 30 and q2 = 30.
3) q1 = 45...
Refer to a duopoly market in which the inverse demand function is given by P =...
Refer to a duopoly market in which the inverse demand
function is given by P = 96 − Q. Firm 1's cost function is
c(q1) = 6q1 + 0.5q12,
and firm 2's cost function is c(q2) = 6q2 +
0.5q22 (such that each firm has MC = 6 +
q).
Q1: The Cournot best-response function for firm 1 will
be:
1) q1 = 22.5 − q2/4
2) q1 = 30 − q2/3
3) q1 = 45 − q2/2
4) q1...
Assume there is a duopoly. Assume that the market demand is : P=100-2Q Assume the good...
Assume there is a duopoly. Assume that the market demand is :
P=100-2Q Assume the good can be
produced at a constant marginal cost of 0 and that both firms have
the same cost. Assume the firms act like Cournot firms.
1. What is the equation for firm 1’s demand curve?
2. What it the equation for firm 2’s demand curve?
3. What is the equation for firm 1’s reaction function?
4. What is the equation for firm 2’s reaction...
Two firms compete as a Stackellberg duopoly. The inverse market demand function they face is P...
Two firms compete as a Stackellberg duopoly. The inverse
market demand function they face is P = 65 – 3Q. The cost function
for each firm is C(Q) = 11Q. The outputs of the two firms
are
Two firms compete as a Stackelberg duopoly. The inverse market demand function they face is P...
Two firms compete as a Stackelberg duopoly. The inverse market
demand function they face is P = 65 – 3Q. The cost function for
each firm is C(Q) = 11Q. The outputs of the two firms are
QL = 9, QF = 4.5
QL = 9, QF = 10.5
QL = 6, QF = 3
QL = 4, QF = 2
Please help/ explain. Thank you
The inverse market demand in a homogeneous-product Cournot duopoly is P = 140 – 2(Q1 +...
The inverse market demand in a homogeneous-product Cournot
duopoly is P = 140 – 2(Q1 + Q2) and costs are Company 1, C1(Q1) =
18Q1 and Company 2 C2(Q2) = 17Q2. Calculate the equilibrium output
for Company 1 Round all calculations to 1 decimal
The inverse market demand in a homogeneous-product Cournot
duopoly is P = 133 – 1(Q1 + Q2) and costs are Company 1, C1(Q1) =
10Q1 and Company 2 C2(Q2) = 21Q2. Calculate the equilibrium output
for...
Q: A homogenous-good duopoly faces an inverse market demand function of P = 57 – Q....
Q:
A homogenous-good duopoly faces an inverse market demand
function of P = 57 – Q. Firm 1 has a constant marginal cost of MC1
= 10. Firm 2’s constant marginal cost is MC2 = 6. Calculate the
output of each firm, market output, and price for a Nash-Cournot
equilibrium. Draw the best response functions for each firm.
Show the solution steps please
The inverse market demand curve for a duopoly market is p=14-Q=14-q₁-q₂, where Q is the market...
The inverse market demand curve for a duopoly market is
p=14-Q=14-q₁-q₂, where Q is the market output, and q₁ and q₂ are
the outputs of Firms 1 and 2, respectively. Each firm has a
constant marginal cost of 2 and a fixed cost of 4. Consequently,
the Nash-Cournot best response curve for Firm 1 is q₁=6-q₂/2.
A. Create a spreadsheet with Columns titled q₂, BR₁, Q, p, and
Profit₁. In the first column, list possible quantities for Firm 2,
q₂,...
The market demand of a duopoly market is given by the equation: P = a –...
The market demand of a duopoly market is given by the equation:
P = a – Q. The total costs of the two firms are TC1 =
cq1, TC2 = cq2 .
Solve for the Cournot-Nash Equilibrium using “double-the-slope”
rule. Draw the reaction curves of the two firms.
Find the output and price for monopoly and perfect competition.
Label these outputs on the graph of reaction curves.
Compare the outputs and prices from part a and part b.
Let the equation of the inverse demand curve for a Cournot duopoly be p = 88...
Let the equation of the inverse demand curve for a Cournot
duopoly be p = 88 - 2 (q1 + q2). where q1 is the output of firm 1
and q2 is the output of firm 2. Firm i's cost function is c(qi) =
8qi .
(a)What are the Cournot duopoly equilibrium outputs, price and
profit per firm for this market?
(b) Suppose that for a market with the inverse demand equation
and cost functions of part (a), firm 1...
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