1)Suppose there are 1000 identical wheat farmers. For each, C ( Q ) = 10 + Q...
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1)Suppose there are 1000 identical wheat farmers. For each, C(Q) = 10 + Q2. Market demand is Q = 600,000 - 100P.
1a . What is the firm's supply curve?
1b . What is the market supply curve?
1c . What is the market equilibrium Q and P?
1d . What is the profit of an individual firm?
2)Suppose the demand for pizza in a small isolated town is P = 10 - Q. There are only two firms, A and B, and each has a cost function C(Q) = 2 + Q. Determine the Cournot oligopoly equilibrium.
2a. What are the profit functions of firm A and B?
2b. What are the best response functions of firm A and B?
2c. Determine the Cournot equilibrium quantities
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