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In: Economics

1. The inverse demand curve for sprokets is P = 4,000 - 2(q1 + q2), where...

1.

The inverse demand curve for sprokets is P = 4,000 - 2(q1 + q2), where the market output Q is the sum of each firm's output of sprokets, q1 + q2 and P is the market price. Spokets can be produced at a constant MC = ATC = 1,000 and all sprokets produced are identical.

Suppose there is a duopoly in the production of sprokets and the firms engage in Stackelberg competition. Firm 1 is the Stackelberg leader. What is Firm 1's profit level?

2.

The inverse demand curve for sprokets is P = 4,000 - 2(q1 + q2), where the market output Q is the sum of each firm's output of sprokets, q1 + q2 and P is the market price. Spokets can be produced at a constant MC = ATC = 1,000 and all sprokets produced are identical.

Suppose there is a duopoly in the production of sprokets and the firms engage in Stackelberg competition. Firm 1 is the Stackelberg leader. What is Firm 2's profit level?

3.

The inverse demand curve for sprokets is P = 4,000 - 2(q1 + q2), where the market output Q is the sum of each firm's output of sprokets, q1 + q2 and P is the market price. Spokets can be produced at a constant MC = ATC = 1,000 and all sprokets produced are identical.

Suppose there is a duopoly in the production of sprokets and the firms engage in Cournot competition. What is the market output level, Q = ?

4.

The inverse demand curve for sprokets is P = 4,000 - 2(q1 + q2), where the market output Q is the sum of each firm's output of sprokets, q1 + q2 and P is the market price. Spokets can be produced at a constant MC = ATC = 1,000 and all sprokets produced are identical.

Suppose there is a duopoly in the production of sprokets and the firms engage in Cournot competition. What is the market price, P = ?

5.

The inverse demand curve for sprokets is P = 4,000 - 2Q, where Q is the quantity of sprokets and P is the market price. Spokets can be produced at a constant MC = ATC = 1,000 and all sprokets produced are identical.

Suppose there is a duopoly in the production of sprokets and the firms engage in Bertrand competition. What is the market output level, Q = ?

Solutions

Expert Solution

Rahul Sunny answered 7 months ago
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