Use the following to answer questions (1) - (14): Suppose the local market for flat glass, considered a homogeneous product, consists of two firms, A and B. The market demand is given as: Q = 40 - 2P, where Q is the market quantity and P is the price. A's total cost (TC,) is: TC, = 6'94, where q, is the quantity produced and sold by A B's total cost (TC2) is: TC, = 8q, where qn is the quantity produced and sold by B [1] The market structure these two firms operate in is definitely not monopolistic competition. True False A. В. [2] Behaving as Cournot competitors, at the Nash eqilibrium A produces a quantity closest in value to: A. 9 В. С. D. 11 13 15 [3] Behaving as Cournot competitors, at the Nash equilibrium the market quantity is closest in value to: A. 10 В. 13 с. 17 D. 20 [4] Behaving as Cournot competitors, at the Nash equilibrium the market price is closest in value to: A. 9 В. С. D. 11 15 19 [5] Behaving as Cournot competitors, at the Nash equilibrium B's profit is closest in value to: A. 8 В. C. 16 20 D. 26 [6] Behaving as Cournot competitors, at the Nash equilibrium A's profit is closest in value to: A. 8 В. C. 16 20 D. 26

Use the following to answer questions (1) - (14): Suppose the local market for flat glass, considered a homogeneous product, consists of two firms, A and B. The market demand is given as: Q = 40 - 2P, where Q is the market quantity and P is the price. A's total cost (TC,) is: TC, = 6'94, where q, is the quantity produced and sold by A B's total cost (TC2) is: TC, = 8q, where qn is the quantity produced and sold by B [1] The market structure these two firms operate in is definitely not monopolistic competition. True False A. В. [2] Behaving as Cournot competitors, at the Nash eqilibrium A produces a quantity closest in value to: A. 9 В. С. D. 11 13 15 [3] Behaving as Cournot competitors, at the Nash equilibrium the market quantity is closest in value to: A. 10 В. 13 с. 17 D. 20 [4] Behaving as Cournot competitors, at the Nash equilibrium the market price is closest in value to: A. 9 В. С. D. 11 15 19 [5] Behaving as Cournot competitors, at the Nash equilibrium B's profit is closest in value to: A. 8 В. C. 16 20 D. 26 [6] Behaving as Cournot competitors, at the Nash equilibrium A's profit is closest in value to: A. 8 В. C. 16 20 D. 26

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter12: Price And Output Determination: Oligopoly

Section: Chapter Questions

Problem 5E

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