Return to the example used in the text for the Cournot model, where demand was equal to

Question:

Return to the example used in the text for the Cournot model, where demand was equal to Q = 120 – P

Suppose that instead of costless production, marginal and average costs are constant at MC = AC = 30

Compute the Nash equilibrium quantities, prices, and profits.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate Microeconomics and Its Application

ISBN: 978-0324599107

11th edition

Authors: walter nicholson, christopher snyder

See More Books

Question Posted: Jan 21, 2013 04:18 AM

See More Questions

The following figure shows a firm's marginal and average costs of production. a. The equilibrium price in this market is $5. At this price, does the firm earn profits or is it making losses? b. From...
Return to the example of problem 2. Starting from free trade, assume that Foreign offers exporters a subsidy of 0.5 per unit. Calculate the effects on the price in each country and on welfare, both...
Return to the example in the text of the two countries that produce random amounts of kiwi fruit and can trade claims on that fruit. Suppose the two countries also produce raspberries that spoil if...
A six-lane freeway (three lanes in each direction) in a scenic area has a measured free-flow speed of 88.5 km/h. The peak-hour factor is 0.80, and there are 8% large trucks and buses and 6%...
In January of 1980, a Troy ounce of gold sold for $850 (an all-time high). Over the past 28 years, suppose the CPI has grown at a compounded annual rate of 3.2%. Today a Troy ounce of gold sells for...
a. ignores salvage value after the payback period. b. uses discounted cash flows to determine the asset's unique rate of return. c. highlights risky investments. d. In capital rationing decisions,...
Is Manufacturing Overhead a temporary or permanent account? Explain how the account operates.
A plane wall of a furnace is fabricated from plain carbon steel (k = 60 W/m K, p = 7850 kg/m 3 , c = 430 J/kg K) and is of thickness L = 10 mm. To protect it from the corrosive effects of the...
Barry wishes to save $5,000 for a holiday in 2 years time. Twenty-four equal monthly deposits will be made into an account, the first deposit being made immediately. The account earns interest at 7%...
Suppose that you are the new CEO at Memorial Hospital. Me- morial is a nonprofit hospital with 300 beds and is located in a busy metropolitan area directly adjacent to a large university. Memorial is...
Refer to Figure. Suppose demand is Q = 10,000 1,000P and marginal cost is constant at MC = 6. From the given demand curve, one can compute the following marginal revenue curve: MR = 10 Q/500 a. Graph...
Consider the model of Bertrand competition with differentiated products from the text. Let the demand curves for firms A and B be given by Equation 12.10 and Equation 12.11, and let the firms'...
Bond Yields Linebacker Co. has 7 percent coupon bonds on the market with nine years left to maturity. The bonds make annual payments. If the bond currently sells for $1,080, what is its YTM?
Scenario : Wanda, a BCBA, is updating an intervention plan for a leaner on her caseload to submit for insurance funding authorization. Part of the plan includes the completion of an adaptive...
a) how can your company accommodate generational or gender difference within your company ? b) how can your company accommodate communication and or language difference within your company ?
3. Consider the following data for two catalysts, A and B. The temperature is 25 C and the reaction occurs at standard conditions. a. Make a Tafel plot and determine the Tafel slope. Estimate the...
How consumption can be helpful in facilitating the construction of your identity? Explain the ways in which the symbolic meanings, connected with your consumption choices are important to you? Is...
Cataumet Boats, Inc. Jaime Giancola had just completed the first half of her MBA program and wanted to work on a project during the summer that would give her some practical experience applying what...
For the organization you chose in question 2, summarize the risks to which your presence, as defined in your answer to questions 3 through 5, would be vulnerable. Describe how you would respond to...
Software Solution is family-owned business that has been in operation for more than 15 year. The board of directors is comprised of mainly family members, plus a few professionals such as an...
Create a data type Universe3D to model three-dimensional universes. Develop a data file to simulate the motion of the planets in our solar system around the sun.
Explain how the U.S. government managed to accumulate a debt of over $9 trillion. To whom does it owe this debt? Is the debt a burden on future generations?
Comment on the following: Deficit spending paves the road to ruin. If we keep it up, the whole nation will go bankrupt. Even if things do not go this far, what right have we to burden our children...
Explain the difference between crowding out and crowding in. Given the current state of the economy, which effect would you expect to dominate today?
Suppose you took a long position on a put option with an exercise price of $2.15 per pound and paid a premium of $0.24 per pound. Required: If the spot exchange rate turns out to be $2.30 per pound...
Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 15 percent, 6 percent, 18 percent, 14 percent, and 10 percent. Suppose the average inflation rate over...
Required : a- outline the statement of comperhensive income for the year ended 30 november 2021 b- outline the statment of financial position as at 30 November The Trial Balance of Alim Enterprise at...

Return to the example used in the text for the Cournot model, where demand was equal to

Question:

Step by Step Answer:

Equation states the marginal revenue for Cournot firm A with the given demand curve is ...View the full answer

Intermediate Microeconomics and Its Application

Students also viewed these Economics questions