FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider a Stackelberg duopoly where MTC (1) sets the price and Paratus (2) follows.Thisindustry exhibitsa linear demand & cost function. Assume thatq1and q2are quantities of

Consider a Stackelberg duopoly where MTC (1) sets the price and Paratus (2) follows.Thisindustry exhibitsa linear demand & cost function. Assume thatq1and q2are quantities of homogenous items produced by two firms (1 &2). Let P= 50-2(q1+q2) and firms cost functions are given by C1=2+2q1and C2=2.5+10q2. Calculate the equilibrium output, price, and profit for each firm

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics

Microeconomics

Authors: David Laibson, John List

Global Edition 1st Edition

1292079576, 978-1292079578

More Books

Students also viewed these Economics questions

Question

★★★★★
The following graphs show the temperature of different solutions with chemical reactions as functions of time. Graph the rate of change of temperature in each case, and indicate when the solution is...

Answered: 1 week ago

Question

★★★★★
The most recent monthly income statement for Kennaman Stores is given below: Kennaman is considering closing Store I. If Store I is closed, one-fourth of its traceable fixed expenses would continue...

Answered: 1 week ago

Question

★★★★★
=+13. The analyst from Exercise 11, worried about collinearity, regresses Age against Past Spending, Income, and Networth. The output shows: Response Variable: Age R2 = 98.75% Adjusted R2 = 98.74% s...

Answered: 1 week ago

Question

★★★★★
Part A The common stock of Wilson, Inc. is owned by 20 stockholders who live in several states. Wilsons financial statements as of December 31, 1994 were audited by Doe & Co., CPAs, who rendered an...

Answered: 1 week ago

Question

★★★★★
( 1 5 Points ) There is nothing exclusively special about strings and XOR in one - time pad. We can get the same properties using integers modn and addition modn. This problem considers a variant of...

Answered: 1 week ago

Question

★★★★★
1. What is the definition of relations of a linear relations? 2. What is the definition of relations of 2D and 3D shapes and figures?

Answered: 1 week ago

Question

★★★★★
Payal has just accepted a three year assignment to run the overseas division of her organization. Before she transfer, Payal and her family are required to take several classes on culture, housing,...

Answered: 1 week ago

Question

★★★★★
An automobile manufacturer uses about 6,000 pairs ofbumpers (front bumper and rear bumper) permonth, which it orders from asupplier. The bumpers are used at a reasonably steady rate during the 240...

Answered: 1 week ago

Question

★★★★★
You are a Manager at Hotel. You have recently hired a new Front Desk Agent, Tina. Tina is enthusiastic and an extrovert. She shows high levels of motivation when learning new tasks. She is quickly...

Answered: 1 week ago

Question

★★★★★
1.Liverpool corporation which manufactures appliances for other companies made sales of $200000000 subject to the product warranties. In the past years between 4% and 6% of the products provided...

Answered: 1 week ago

Question

★★★★★
Exit strategy recommendations and plan: Outline your change management strategy for transition after the acquisition. Specifically, you must address the following criteria: Change management...

Answered: 1 week ago

Question

★★★★★
Question 1 10 points Save Answer Two firms simultaneously decide whether to Enter (E) or stay out (O). The state of the market can be strong or weak and it is known by Firm 1 only. Firm 2 believes...

Answered: 1 week ago

Question

★★★★★
3. What is my goal?

Answered: 1 week ago

Question

★★★★★
2. I try to be as logical as possible

Answered: 1 week ago

Question

★★★★★
1. To understand the prerequisites for personal communication mastery.

Answered: 1 week ago

Previous Question Next Question