13.8. In a homogeneous products duopoly, each firm has a marginal cost curve MC ! 10 #...

Question:

13.8. In a homogeneous products duopoly, each firm has a marginal cost curve MC ! 10 # Qi

, i ! 1, 2. The market demand curve is P ! 50 " Q, where Q ! Q1 # Q2.

a) What are the Cournot equilibrium quantities and price in this market?

b) What would be the equilibrium price in this market if the two firms acted as a profit-maximizing cartel?

c) What would be the equilibrium price in this market if firms acted as price-taking firms?

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

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 9780470563588

4th Edition

Authors: David Besanko, Ronald Braeutigam

See More Books

Question Posted: Oct 15, 2024 05:03 AM

See More Questions

In a homogeneous products duopoly, each firm has a marginal cost curve MC = 10 + Qi, i = 1, 2. The market demand curve is P = 50 - Q, where Q = Q1 + Q2. a) What are the Cournot equilibrium quantities...
an unadjusted trial balance as of December 31, 2020. (6points)Account TitleBalanceDebitCreditCash36,910Accounts Receivable5,750Office Supplies1,400 PART1: The following transactions occurred for...
Other things being equal, most managers would prefer to report liabilities as noncurrent rather than current. The logic behind this preference is that the long-term classification permits the company...
The following data represent the length of life, in seconds, of 50 fruit flies subject to a new spray in a controlled laboratory experiment:(a) Construct a double-stem-and-leaf plot for the life span...
13.8. In a homogeneous products duopoly, each firm has a marginal cost curve MC ! 10 # Qi , i ! 1, 2. The market demand curve is P ! 50 " Q, where Q ! Q1 # Q2. a) What are the Cournot equilibrium...
Cathy Talbert is the general manager of Barham Company, which provides data-management services for physicians in the Columbus, Ohio, area. Barham Company is having a rough year. Net income trails...
Show that the square of any positive integer cannot be of form (Sq + 2) or (5q + 3) for any integer q Ans : Let a be any positive integer. Take b=5 as the divisor. Therefore. a = 5mr, r=0,1,2,3,4...
13.7. Lets consider a market in which two firms compete as quantity setters, and the market demand curve is given by Q ! 4000 " 40P. Firm 1 has a constant marginal cost equal to MC1 ! 20, while Firm...
13.9. Suppose that demand for cruise ship vacations is given by P ! 1200 " 5Q, where Q is the total number of passengers when the market price is P. a) The market initially consists of only three...
The Sullivan Statistics Survey II asks, "What percent of one's income should an individual pay in federal income taxes?" Go to www.pearsonhighered.com/sullivanstats to obtain the data file...
A farmer connects a cylindrical tank of 10m diameter and 2m deep built in his field to a canal through a pipe of internal diameter 20 cm. If water is flowing in the pipe at a speed of 3 km/h, then...
Water is flowing at a speed of 10 km/h in a canal 6m wide and 1.5 m deep. How much area will this canal be able to irrigate in 30 minutes, while 8cm deep water is required for irrigation.
A cylindrical bucket 32cm high and base radius 18cm is filled with sand. This bucket is emptied on the ground and a conical heap of this sand is made. The height of this conical heap is 24 cm. So...
How many silver coins of diameter 1.75cm and thickness 2mm must be melted to make a cuboid of dimensions 5.5 cm x 10 cm 3.5cm?
A vessel in the shape of a right circular cylinder of diameter 12 cm and height 15 cm is filled with ice cream. This ice cream is filled into cones of height 12 cm and diameter 6 cm. The top of which...
Show that if B (T) is the second virial coefficient of a gas, and B = B (T") B (T), /)'T= T' - T, and T is the mean of T' and T, then T= RT2t BIV~,/)'T. Estimate IT]' for argon given that B(250 K) =...
What is the ideal number of children to have? This question was asked on the Sullivan Statistics Survey I. Draw a dot plot of the variable Children from theSullivanStatsSurveyI data set at...

13.8. In a homogeneous products duopoly, each firm has a marginal cost curve MC ! 10 #...

Question:

Step by Step Answer:

Microeconomics

Students also viewed these Business questions