Suppose there are three identical firms engaged in quantity competition. The demand is P = 1...

Suppose there are three identical firms engaged in quantity competition. The demand is P = 1 − Q where Q = q1 + q2 + q3. To simplify, assume that the marginal cost of production is zero. Compute the Cournot equilibrium (i.e., quantities, price, and profits).

Expert Solution

Rahul Sunny answered 1 year ago

Suppose two firms are engaged in Stackelberg Competition. The demand curve is P = 56 -...

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Consider two identical firms in a Cournot competition. The market demand is P = a –...

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Suppose there are two identical firms A and B facing a market demand P=280-2Q. Both firms...

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Suppose there are two identical firms A and B facing a market demand P=100-2Q. Both firms have the same marginal cost MC=4. Assume that firms are Cournot-competitors (in quantity). Find the equilibrium price, quantity and profits. Assume that firms are Stackelberg-competitors (in quantity) and Firm A is the leading firm. Find the equilibrium price, quantity and profits. What general conclusions can you derive from the answers that you found in (a) & (b)?

Suppose there are N firms who produce an identical product and face the demand curve P...

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problem 1. Suppose two firms facing a demand D(p) compete by setting prices simultaneously (Bertrand Competition)....

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