Question

	Bertrand’s Price Competition	Monopoly by Firm 1	Cartel	Cournot Simultaneous quantity decisions	Stackelberg Leader/Follower quantity dec
y1	(i_a)	(ii_a)	(iii_a)	(iv_a)	(v_a)
y2	(i_b)	(ii_b)	(iii_b)	(iv_b)	(v_b)
Total YT	(i_c)	(ii_c)	(iii_c)	(iv_c)	(v_c)
p	(i_d)	(ii_d)	(iii_d)	(iv_d)	(v_d)
π1	(i_e)	(ii_e)	(iii_e)	(iv_e)	(v_e)
π2	(i_f)	(ii_f)	(iii_f)	(iv_f)	(v_f)
Total πT	(i_h)	(ii_h)	(iii_h)	(iv_h)	(v_h)
(1) DWL	(i_i)	(ii_i)	(iii_i)	(iv_i)	(v_i)
(2) CS	(i_j)	(ii_j)	(iii_j)	(iv_j)	(v_j)
(3) PS	(i_k)	(ii_k)	(iii_k)	(iv_k)	(v_k)
Total (1)+(2)+(3)	(i_l)	(ii_l)	(iii_l)	(iv_l)	(v_l)

Prepare solutions for the different hypothetical market structure scenarios in Table 2 using the information below.

Demand: p=550-50YT, YT=y1+y2
Firm 1 Cost Function: C1=50y1
Firm 2 Cost Function: C2=50y2

Q) The missing value in cell (v_f) of Table 2 is:

Q) The missing value in cell (v_j) of Table 2 is:

Q) In table 2 the sum of Consumers' Surplus, Producers' Surplus and Deadweight Loss should be:

a)Always equal to 2,500.

b)Equal to 2,500 under Bertrand's price competition, and higher than 2,500 in other cases.

c)Equal to 2,500 under Bertrand's price competition, and lower than 2,500 in other cases.

d)Always equal to 5,000

e)Equal to 5,000 under Bertrand's price competition, and higher than 5,000 in other cases.

f)Equal to 5,000 under Bertrand's price competition, and lower than 5,000 in other cases.

Answer 1