Question
In: Economics
The market demand curve for a pair of Cournot duopolists is given as: P = 60...
The market demand curve for a pair of Cournot duopolists is given as: P = 60 – 3Q. The constant per unit marginal cost is $6/unit for each duopolist. (Round your answers to two decimal points)
a) Find the Cournot equilibrium price, quantity, and profits
b) Solve the same problem as a Bertrand equilibrium. Find the longrun equilibrium price, quantities, and profits.
c) Solve the same problem as a Stakelberg Leader-Follower equilibrium. Assume Firm 1 is the leader.
Solutions
Rahul Sunny answered 7 months agoRelated Solutions
The market demand curve for a pair of Cournot duopolists is given as: P = 36...
The market demand curve for a pair of Cournot duopolists is
given as: P = 36 - 3Q, (Q = Ql + Q2). The constant per unit
marginal cost is 12 for each duopolist.
12) What is the Cournot equilibrium price?
a) 0
b) 10
c) 18
d) 20
e) None of the above
13) What is the Cournot equilibrium quantities for each
firm?
a) 1.33
b) 2.66
c) 18.14
d) 20
e) None of the above
14) What is...
Cournot duopolists face a market demand curve given by P = 90 -Q where Q is...
Cournot duopolists face a market demand curve given by P = 90 -Q
where Q is total market demand. Each firm can produce output at a
constant marginal cost of 30 per unit. There are no fixed costs.
Determine the (1) equilibrium price, (2) quantity, and (3) economic
profits for the total market,(4) the consumer surplus, and (5) dead
weight loss.Show Work
24. Cournot duopolists face a market demand curve given by P = 90 - Q where...
24. Cournot duopolists face a market demand curve given by P =
90 - Q where Q is total market demand. Each firm can produce output
at a constant marginal cost of 30 per unit. There are no fixed
costs. Determine the (1) equilibrium price, (2) quantity, and (3)
economic profits for the total market, (4) the consumer surplus,
and (5) dead weight loss.
25. If the duopolists in question 24 behave according to the
Stackelberg Leader-Follower model, determine the...
Cournot duopolists face a market demand curve given by P = 90 - Q where Q...
Cournot duopolists face a market demand curve given by P = 90 -
Q where Q is total market demand. Each firm can produce output at a
constant marginal cost of 30 per unit. There are no fixed costs.
Determine the (1) equilibrium price, (2) quantity, and (3) economic
profits for the total market, (4) the consumer surplus, and (5)
dead weight loss.
Cournot duopolists face a market demand curve given by P = 90 - Q where Q...
Cournot duopolists face a market demand curve given by P = 90 -
Q where Q is total market demand. Each firm can produce output at a
constant marginal cost of 30 per unit. There are no fixed cost.
(Just need B through C answer please)
a. Find the equilibrium price, quantity and economic profit for
the total market, consumer surplus and Dead weight loss
b. If the duopolists in question above behave, instead,
according to the Bertrand model, what...
Market demand curve for a pair of Cournot duopolist is given as P = 36-3Q where...
Market demand curve for a pair of Cournot duopolist is given as
P = 36-3Q where Q = q1 + q2. The constant per unit marginal cost is
18 for each firm. Find the best response function for each firm,
the Cournot equilibrium price and market quantity. What is the
Cournot Lerner Index?
Firms A and B are Cournot duopolists producing a homogeneous good. Inverse market demand is P...
Firms A and B are Cournot duopolists producing a homogeneous
good. Inverse market demand is P = 100 − Q , where P is market
price and Q is the market quantity demanded. Each firm has marginal
and average cost c = 40.
(a) The two firms propose to merge. Derive total output, market
price, profit and consumer surplus before the merger and after the
merger. Explain intuitively any changes you see to these variables
when the merger occurs.
(b)...
25.) Duopolists face a market demand curve given by P = 90 - Q where Q...
25.) Duopolists face a market demand curve given by P = 90 - Q
where Q is total market demand. Each firm can produce output at a
constant marginal cost of 30 per unit. There are no fixed costs. If
the duopolists behave, according to the Bertrand model, determine
the (1) equilibrium price, (2) quantity, and (3) economic profits
for the total market and (4) the consumer surplus, and (5) dead
weight loss.
Stackelberg Leader-Follower duopolists face a market demand curve given by P = 120 - 3Q where...
Stackelberg Leader-Follower duopolists face a market demand
curve given by P = 120 - 3Q where Q is total market demand. Each
firm can produce output at a constant marginal cost of 20 per unit.
The equilibrium price for the total market will be...?
Two firms operate in a Cournot duopoly and face an inverse demand curve given by P...
Two firms operate in a Cournot duopoly and face an inverse
demand curve given by P = 200 - 2Q, where Q=Q1+Q2 If each firm has
a cost function given by C(Q) = 20Q, how much output will each firm
produce at the Cournot equilibrium?
a. Firm 1 produces 45, Firm 2 produces 45.
b. Firm 1 produces 30, Firm 2 produces 30
c. Firm 1 produces 45, Firm 2 produces 22.5
d. None of the above.
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