Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 24, 2024

Consider the following duopolistic competition with identical products. Market Demand:P = 15 - Q Costs:MC A =2; and MC B = 3. (i.e., the two

Consider the following duopolistic competition with identical products.

Market Demand:P = 15 - Q

Costs:MC_A =2; and MC_B = 3. (i.e., the two firms have constant MC).

Firm A chooses its quantity q_A first.After observing Firm A's quantity choice, Firm B chooses its quantity q_B.

1)Please calculate, step by step, the optimal q_A and q_B.

2)What are the corresponding profits for the two firms?Please show your work.

Next, assume that the two firms compete in prices.

3)what is the optimal price for Firm A?What happens to Firm B in this case?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

Step: 3

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

Business Law Today The Essentials

Authors: Roger LeRoy Miller

12th Edition

035703791X, 9780357037911

More Books

Students also viewed these Economics questions

Question

★★★★★

A toaster is rated at 600 W when connected to a 120-V source. What current does the toaster carry, and what is its resistance?

Answered: 1 week ago

Question

★★★★★

Units Sold to Break Even, Unit Variable Cost, Unit Manufacturing Cost, Units to Earn Target Income Belham Company produces and sells disposable foil baking pans to retailers for $3.00 per pan. The...

Answered: 1 week ago

Question

★★★★★

e. What are the programs research and clinical focus areas?

Answered: 1 week ago

Question

★★★★★

The accounting records of Downton Home Store show these data (in millions). The shareholders are very happy with Downtons steady increase in net income. Auditors discovered that the ending inventory...

Answered: 1 week ago

Question

★★★★★

Given: Matrix Dimension - N: 2 CPU Frequency - 2.8E+09 # accuracy improvemnt loops - 1.00+09 Measured total execution time for all accuracy improvement loops: 1.71E+100 GHz = 2.8 FIND: (please...

Answered: 1 week ago

Question

★★★★★

1. What types of questions would you ask the OLG if you were interviewing for an internship? Would it make a difference to you if the internship were in casino operations or in responsible gaming?...

Answered: 1 week ago

Question

★★★★★

The following output displays sex differences for how individuals rate feminists. Higher scores equal a more favorable rating. Use the table to answer the following questions. Group Statistics GENDER...

Answered: 1 week ago

Question

★★★★★

Olsen & Alain, CPAs (O&A) performed the audit of Rocky Point Brewery (RPB), a public company in 20X1 and 20X2. In 20X2, O&A also performed tax services for the company. Which statement best describes...

Answered: 1 week ago

Question

★★★★★

The City by the Bay Chocolate Company makes world-class chocolate. They are preparing their Finished Goods Inventory Budget for next year. Each box of chocolate they make has the following costs:...

Answered: 1 week ago

Question

★★★★★

Determine the value of a stock with the following variables using the constant growth model: Current annual dividend: $3.25 per share Required return rate: 6% Constant growth rate: 5.5% $689.00...

Answered: 1 week ago

Question

★★★★★

The chief audit executive (CAF) determined that the residual risk identified in an assurance engagement is acceptable. When should this be communicated to senior management? A. When the CAE reports...

Answered: 1 week ago

Question

★★★★★

Parts a, b, c and d of this question are independent of one another. a) firm A wants to acquire firm B to achieve economies of scale. Does this motive make economic sense? Answer in terms of YES or...

Answered: 1 week ago

Question

★★★★★

ABC has earnings per share of 2 dollars. It has 10000 shares outstanding and is trading at 20 dollars per share. ABC is thinking of buying XYZ, which has earnings per share of 1.25 dollars, 4000...

Answered: 1 week ago

Question

★★★★★

6. Give an example of how the liking principle can be used to influence others.

Answered: 1 week ago

Question

★★★★★

5. Give an example of how the consensus principle can be used to influence others.

Answered: 1 week ago

Question

★★★★★

9. Give an example of how the word because can trigger a cognitive reflex in another party.

Answered: 1 week ago

Previous Question Next Question