The demand the duopoly firms face is p = 100 – 2Q where Q = q1 + q2. Each firm has the following cost function: c(qi) = 40 + qi2/2, i = 1, 2. Using calculus, determine the Stackelberg equilibrium. determine the Cournot equilibrium. plz answer correct calculation asap plz Dont answer by pen pepar plz
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The demand the duopoly firms face is p = 100 – 2Q where Q = q1 + q2. Each firm has the following cost function: c(qi) = 40 + qi2/2, i = 1, 2. Using calculus,
determine the Stackelberg equilibrium.
determine the Cournot equilibrium.
plz answer correct calculation asap plz
Dont answer by pen pepar plz
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- Problem 1. HHI in the Bertrand Triopoly Equilibrium It's a Bertrand Triopoly - hence we know there are 3 firms in the industry-in-question, who competes in "price". The inverse demand functions for Firm 1, 2, and 3 are as follows: q1 = 40 - 1.5p1 +0.5p2 +p3 q2 = 40 + 1.5p1 - 3p2+p3 q3 = 40 + 2p1 + 1.5p2 - 4p3 For each firm, the marginal cost of production is $2.50/unit produced and sold. Apparently, the firms' products are differentiated. You cannot impose symmetry across firms. Therefore, please solve each firm's profit maximization problem, impose equilibrium, and solve for each firm's "action" in equilibrium. After that, please calculate the Herfindahl- Hirschman Index (HHI) in the industry in equilibrium.Consider a homogeneous-product Cournot ollgopoly of 3 firms with cost functions TC(a) = 24, Sup- pose that the Inverse demand function Is P(Q) = 30 - Q. (a) Solve for Cournot-Nash equilibrlum. (b) Firm 1 and Firm 2 merge Into Firm A. Solve for the new Cournot-Nash equilibrlum. Provide an Intultive explanation for the decrease In the combined profit of the merged firms.MC ATC MR hj g Output Refer to the above diagram for a firm in an oligopoly industry. In equilibrium this firm is is making an economic profit breaking even is incurring a loss O should close down in the short run Dollars of
- What is the homogeneous-good duopoly Cournot equilibrium if the market demand function is Q= 1,800 - 1,000p. and each firm's marginal cost is $0.28 per unit? The Cournot-Nash equilibrium occurs where q, equals and 92 equals (Enter numenic responses using real numbers rounded to two decimai places.) Furthermore, the equilibrium occurs at a price of $ (Round your answer to the nearest penny.)1. Two firms (A and B) play a competition game (i.e. Cournot) in which they can choose any Qi from 0 to ¥. The firms have the same cost functions C(Qi) = 10Qi + 0.5Qi2, and thus MCi = 10 + Qi. They face a market demand curve of P = 220 – (QA + QB). a. Assume firm A chooses quantity first. Frim B observes this choice and then chooses its own quantity. What is Frim B's profit as a function of QA and QB? b. Firm B has MRB = 220 – 2QB – QA. What is firm B’s best response to an arbitrary QA selected by firm A? c. Given that firm A expects firm B’s best response, what is firm A’s profit as a function of QA? (Hint: the only unknown variable in the profit function should be QA) d. Firm A has MRA = 150 – 4QA/3. What are the equilibrium QA and QB selected in this game? e. What is the equilibrium price, and how much profit does each firm collect?Help me please
- Two firms produce identical products at zero cost, and theycompete by setting prices. If each firm charges a low price,then both firms earn profits of zero. If each firm charges ahigh price, then each firm earns profits of £30. If one firmcharges a high price and the other firm charges a low price,the firm that charges the lower price earns profits of £50, andthe firm charging the higher price earns profits of zero. (a) Which oligopoly model best describes this situation?(b) Write this game in normal form.(c) Suppose the game is infinitely repeated. Can theplayers sustain the "collusive outcome" as a Nashequilibrium if the interest rate is 50 percent? Explain. Please answer the a, b and c parts.a) Suppose that the two firms engage in Cournot competition. Find the equilibrium price PNE in the industry, the equilibrium outputs QANE and QBNE, as well as the profits πANE and πBNE, for each firm. b) Suppose the marginal cost for firm B increases from $20 to $140, while everything else remains unchanged. Find the new equilibrium price PNE in the industry, the new equilibrium outputs QANE and QBNE, as well as the new profits πANE and πBNE for each firm. c) Suppose that, in addition to the marginal cost increase from $20 to $140 from sub question b), firm B also has a fixed cost of $2500, out of which $2100 may be recouped if it shuts down; everything else remains unchanged. In this case, what will firm B’s optimal output be? (Justify your answer.) What will firm A’s profit be?Consider the Cournot duopoly with linear demand function ? = 2000 − 2Q, where P is the price and Q = q1 + q2 is the total supply. Firm 1 and firm 2 has constant marginal cost of 600. Just answer the E, F and G, thank you bartleby! a. If firm compete in price, draw in detail the best response of each firm.b. Determine and explain the Bertrand equilibrium.c. What is the equilibrium quantity and how much profit for each firm?d. Explain the Bertrand Paradox in (c)!e. If firm 1 has capacity of production 450 and firm 2 has capacity of 200. Determine the Bertrand equilibrium.f. What is the equilibrium quantity, and how much profit for each firm?g. Is there any paradox in (f)?
- Assume firms' marginal and average costs are constant and equal to c and that inverse market demand is given by P = a - bQ where a, b > 0. Suppose now the market is served by k firms that choose quantities for their identical products simultaneously. Calculate: i. ii. iii. iv. The Nash equilibrium quantities for the Cournot firms as functions of k. 2 Market output and price as a function of k Firm profit as a function of k Using your answers in i, ii, iii and iv, describe what happen to firm output, market output, market price and firm profit as the number of firms increases.Consider the following Cournot game with two firms i = 1, 2. The demand function is P(Q) = 100 − Q, with Q = q1 + q2. The production costs for firm i are: C(qi) = 400 + 2qi . Find the nash equilibrium of this game. plz answer correct calculatuon asap plz dont answer by peparAssume firms' marginal and average costs are constant and equal to c and that inverse market demand is given by P = a - bQ where a, b > 0. Suppose now the market is served by 2 firms that choose quantities for their identical products simultaneously. Calculate: i. ii. iii. iv. The Nash equilibrium prices for Cournot duopolists Firm output Market out Firm profit
