In a duopoly market firms face the market demand curve P=280-Q where Q=q1+q2. Each firm has a marginal cost of 40 taka per unit. What is the Cournot equilibrium?
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In a duopoly market firms face the market
Each firm has a marginal cost of 40 taka per unit. What is the Cournot equilibrium?
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- Consider a Cournot duopoly. The market demand function is P = 180 – 2(q₂ + q₂), where P is the market price, q₂ is the output produced by Firm 1 and q₂ is the output produced by Firm 2. The two firms have a constant marginal cost c = 30. What is the total output in this market? Round your answer to the nearest integer (e.g. 50)Suppose there are just two firms, 1 and 2, in the oil market and the inverse demand for oil is given by P = 60 – Q. The marginal cost for each firm is €30. What price should Firm 2 charge at the Cournot equilibriumWhat 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.)
- Two firms sells an identical product. The demand function for each firm is given: Q = 20 - P, where Q = q1 + q2 is the market demand and P is the price. The cost function for reach firm is given: TCi = 10 + 2qi for i = 1, 2. a) If these two firms collude and they want to maximize their combined profit, how much are the market equilibrium quantity and price? b) If these two firms decide their production simultaneously, how much does each firm produce? What is the market equilibrium price? c) If Firm 1 is a leader who decides the production level first and Firm 2 is a follower, how much does each firm produce? What is the market equilibrium price?Consider a market for crude oil production. There are two firms in the market. The marginal cost of firm 1 is 20, while that of firm 2 is 20. The marginal cost is assumed to be constant. The inverse demand for crude oil is P(Q)=200-Q, where Q is the total production in the market. These two firms are engaging in Cournot competition. Find the production quantity of firm 1 in Nash equilibrium. If necessary, round off two decimal places and answer up to one decimal place.Consider a COURNOT duopoly. Market demand is P(Q)=140-Q and each firm faces a constant marginal cost of $20. If Firm 1 produces 29 units and firm 2 produces 30 units, what is Firm 2's Producer Surplus? Enter a number only, drop the $ sign.
- Consider a Cournot duopoly. The market demand function is P = 112-1(q1 + q2), where P is the market price, q1 is the output produced by Firm 1 and q2 is the output produced by Firm 2. The two firms have a constant marginal cost c = 17. What is Firm 2's profit ? Round your answer to the nearest integer (e.g. 50)Duopoly and menu costs. (This is adapted from CaminaI 1987.) Consider two firms producing imperfect substitutes. Both firms can produce at zero marginal cost. The demand for the good produced by firm i is given by Now suppose that both firms enter the period with price p., which is the Nash equilibrium price for some value of a, a·. They know b and c. They each observe the value of a for the period, and each firm must independently quote a price for the period. If it wants to quote a price different from p*, it must pay a cost k. Otherwise, it pays nothing. Once prices are quoted, demand is allocated, demand determines produdion, and profits are realized. (b) Compute the set of values of a (around a*) for which not to adjust prices is a Nash equilibrium. (c) Compute the set of values of a (around a*) for which to adjust prices is a Nash equilibrium. (d) Check that all equilibria are symmetric and therefore that there are no other equilibria than the ones computed above.…Consider a duopoly where firms compete in prices and firms do not have any capacity constraints. Market demand is P(Q)=45-4Q, and each firm faces a marginal cost of $9 per unit. How much is each firm's total variable cost if firms equally divide the market at Nash equilibrium?
- What is the duopoly Nash-Cournot equilibrium if the market demand function is Q = 500 - 10p and each firm’s marginal cost is 5¢ per unit?Consider a Bertrand oligopoly consisting of four firms that produce an identical product at a marginal cost of $220. The inverse market demand for this product is P = 800 -4Q.a. Determine the equilibrium level of output in the market.b. Determine the equilibrium market price.$ c. Determine the profits of each firm.$Two firms - firm 1 and firm 2 - share a market for a specific product. Both have zero marginal cost. They compete in the manner of Bertrand and the market demand for the product is given by: q = 20 − min{p1, p2}. 1. What are the equilibrium prices and profits? 2. Suppose the two firms have signed a collusion contract, that is, they agree to set the same price and share the market equally. What is the price they would set and what would be their profits? For the following parts, suppose the Bertrand game is played for infinitely many times with discount factor for both firms δ ∈ [0, 1). 3. Let both players adopt the following strategy: start with collusion; maintain the collusive price as long as no one has ever deviated before; otherwise set the Bertrand price. What is the minimum value of δ for which this is a SPNE. 4. Suppose the policy maker has imposed a price floor p = 4, that is, neither firm is allowed to set a price below $4. How does your answer to part 3 change? Is it now…
