2) Consider the oligopolistic market for robotic lawnmowers. The cost function of all firms is given...

2) Consider the oligopolistic market for robotic lawnmowers.

The cost function of all firms is given by C_i = 180Q_i
Demand for robotic lawnmowers is given by Q_D = 24,000 – 80P

Find the optimal production for one firm, the total quantity, and the price as functions of the number of firms n
Suppose n = 4. Find numeric values for the variables in 2)a)

Expert Solution

Rahul Sunny answered 8 months ago

1. There are identical firms with cost function ?(?) = ? 2 + 100. The market...

1. There are identical firms with cost function ?(?) = ? 2 + 100. The market demand is given by the following inverse demand function ? = −0.02? + 220. The industry is a constant cost industry. This is a competitive market where each firm takes the price as given, with $5 per unit tax levied on the producers. a) Calculate the firm’s MC, AC, AVC and supply ?(?). Graph the cost curves and the supply on a graph. b)...

Question 2: In an oligopolistic market, firms pay close attention to the strategies of their rivals....

Question 2: In an oligopolistic market, firms pay close attention to the strategies of their rivals. In monopolistic competition, with a large number of sellers, it is assumed that there is not this kind of rivalry, or interdependence. Why is there probably some rivalry in many monopolistically competitive markets? You also must cover the oligopolistic market.

Suppose a perfectly competitive market consists of identical firms with the same cost function given by...

Suppose a perfectly competitive market consists of identical firms with the same cost function given by C(q)=2q3 - 3q2 + 70q The market demand is QD= 2200 - 10p What will be the long-run equilibrium price in this market? Round your answer to the nearest cent (0.01)

Consider a market where the inverse demand function is P = 100 - Q. All firms...

Consider a market where the inverse demand function is P = 100 - Q. All firms in the market have a constant marginal cost of $10, and no fixed costs. Compare the deadweight loss in a monopoly, a Cournot duopoly with identical firms, and a Bertrand duopoly with homogeneous products.

Consider a market with 4 firms, each facing the same (inverse) demand function given by p...

Consider a market with 4 firms, each facing the same (inverse) demand function given by p = ( 6 − q/50 if q > 200 4.5 − q/200 if 0 ≤ q ≤ 200 If there is a drop in one of the firm’s marginal cost from c = $3 to c = $2, do you think this firm would greatly increase its sales? Explain!

Suppose the market for smartphones in Australia is oligopolistic with three firms owning the entire market:...

Suppose the market for smartphones in Australia is oligopolistic with three firms owning the entire market: Apple, Samsung and Google. (a) Suppose all the products are unbranded (homogeneous) and all three firms have similar cost functions. What would be the best outcome for consumers in this market and what is the best outcome for the three oligopolists? Which one is the efficient outcome? (b) Suppose Apple can differentiate its smartphone by using a different operating system than the other two...

A firms demand function for a good is given by P = 107-2Q and their total cost function is given by

A firms demand function for a good is given by P = 107-2Q and their total cost function is given by TC = 200+3Q . i). Obtain an expression for total revenue profit in terms of Q ii). For what values of Q does the firm break even. iii). llustrate the answer to (ii) using sketches of the total cost function, the total revenue function and the profit function. iv). From the graph estimate the maximum profit and the level...

Consider a perfectly competitive market in which all firms areidentical. The market is in the...

Consider a perfectly competitive market in which all firms are identical. The market is in the long-run equilibrium, the market equilibrium price is P , and each firm produces q units of good.The government decides to impose a tax of size T per unit of good.a) After the tax is imposed, how would the market equilibrium price and quantity change in the short-run? How does the quantity produced by each firm change in the short-run? Illustrate your answers using a diagram....

Assume an oligopolistic market with one large dominant firm. The dominant firm's marginal cost is given...

Assume an oligopolistic market with one large dominant firm. The dominant firm's marginal cost is given by the following equation: MC = 0.46 Q The market demand is the following: QD = - 13 P + 261 The supply of the smaller firms combines is given by the following equation: QS = 24 P + 168 What would be the combined production of the small firms?

4) Assume, A and B are the only firms which are operating in an oligopolistic market....

4) Assume, A and B are the only firms which are operating in an oligopolistic market. The equation of the market demand curve is, Q=600-2P, the total cost function of the firm A is, TCA=0.5and the total cost function of the firm B is, TCB=120qB. a) Find the market price and quantities if both firms behave as Cournot duopolists. b) Find the market price and quantities if the firm A behaves as the Stackelberg leader and firm B behaves as...

Question