Question
In: Economics
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?
Solutions
Rahul Sunny answered 6 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...
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.
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...
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...?
Suppose that the market demand is: P = 24 – 3Q, where P is price and...
Suppose that the market demand is: P = 24 – 3Q, where P is price
and Q is quantity demanded, and marginal revenue is: MR = 24 –
6Q.
The marginal cost is: MC = 6 and total fixed cost is 0.
a. If the market structure is monopoly, determine the profit
maximizing price and output for this monopolist and calculate its
economic profit or loss at the profit maximizing output.
b. If the market structure is perfect competition, determine...
Suppose that a firm faces the demand curve, P = 100 - 3Q, where P denotes...
Suppose that a firm faces the demand curve, P = 100 - 3Q, where
P denotes price in dollars and Q denotes total unit sales. The cost
equation is TC = 200 + 22Q.
a. Determine the firm’s profit-maximizing output and
price.
b. Suppose that there is a change in the production process so
that the cost equation becomes TC = 80 + 12Q + Q2.
Determine the resulting effect on the firm’s
output:
c. Using the two...
Assume a monopolist faces a market demand curve P = 190 - 3Q and has the...
Assume a monopolist faces a market demand curve
P = 190
- 3Q and has the
short-run total cost function C
= 540
+ 10Q. What is the
profit-maximizing level of output? What are profits? Graph the
marginal revenue, marginal cost, and demand curves, and show the
area that represents deadweight loss on the graph. (Hint: derive
the MR and MC functions and set MC=MR and solve).
In Question 3 above, what would price and output be if the firm...
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