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

Question

1 Approved Answer

Eyeone and SafetyTwo are a cournot duopoly. Inverse demand function of P=160-2Q where total output is Q=Q1+Q2, Eyeone (Q1) SafetyTwo(Q2). Monthly cost is estimated as

Eyeone and SafetyTwo are a cournot duopoly. Inverse demand function of P=160-2Q where total output is Q=Q1+Q2, Eyeone (Q1) SafetyTwo(Q2). Monthly cost is estimated as C=4Q for both. Eyeone is considering making a monthly investment of $200. If their campaign is successful they will steal market share and become the leader the leader (Stackleberg).

Stackelberg:

1. What is eyeone's output level?

2. what is eye one's price?

3. what is eyeone's profit?

4. Should eye one move forward with $200 monthly investment? Explain.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

1 Eyeones Output Level Q1 as the Leader Stackelberg Eyeone as the leader in the Stackelberg duopoly ... 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_2

Step: 3

blur-text-image_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

Managerial Economics And Strategy

Managerial Economics And Strategy

Authors: Jeffrey M. Perloff, James A. Brander

3rd Edition

0134899709, 978-0134899701

More Books

Students also viewed these Economics questions

Question

CANMNMM January of this year. (a) Each item will be held in a record. Describe all the data structures that must refer to these records to implement the required functionality. Describe all the...

Answered: 1 week ago

Question

PLEASE GIVE CORRECT ANSWERS Prove that the number of comparators in any sorting network is (n log n). [4 marks] (ii) What does Part (d)(i) imply in terms of the depth of any sorting network? [1 mark]...

Answered: 1 week ago

Question

★★★★★
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

Answered: 1 week ago

Question

★★★★★
Pritchett Company reported the following year-end data: Cash $ 25,000 8,000 Short-term investments Accounts receivable (current) Inventory 19,500 27,500 Prepaid (current) assets 11,000 Total current...

Answered: 1 week ago

Question

★★★★★
Like CFCs, certain bromine-containing compounds such as CF3Br can also participate in the destruction of ozone by a similar mechanism starting with the Br atom: CF3Br CF3 + Br Given that the average...

Answered: 1 week ago

Question

★★★★★
=+What sports in the United States are ripe for this type of television programming?

Answered: 1 week ago

Question

★★★★★
A group of n customers moves around among two servers. Upon completion of service, the served customer then joins the queue (or enters service if the server is free) at the other server. All service...

Answered: 1 week ago

Question

★★★★★
Rosenberg Manufacturing Corp. is considering marketing their new hearing aid in the city of Big Smoke. This device is targeted at the hearing impaired over the age of 60 years. As she considers the...

Answered: 1 week ago

Question

★★★★★
United Health Group leased a life support machine on January 1, 2021, for a three-year period ending December 31, 2023. The lease agreement specified annual payments of $144,000 beginning with the...

Answered: 1 week ago

Question

★★★★★
The mean gestational length of a sample of 208 horses is 343.7 days, with a standard deviation of 10.4 days. The data set has a bell-shaped distribution. (a) Estimate the number of gestational...

Answered: 1 week ago

Question

★★★★★
please i need answer for these multiple choice questions Suppose a perfectly competitive market is currently in a long-run equilibrium. If the demand curve were to shift inward, then in the...

Answered: 1 week ago

Question

★★★★★
A combustion unit is burning refused derived fuel (RDF) consisting of 88% organics, 7% water, and 5% inorganics (inerts) at a rate of 1000 kg h. Assume the heat value of the fuel to be 17,000 kJ/kg...

Answered: 1 week ago

Question

★★★★★
A 4-m long, 150-kg steel beam is attached to a wall with one end connected to a hinge that allows the beam to rotate up and down. The other end of the beam is held in a horizontal position with a...

Answered: 1 week ago

Question

★★★★★
DM & DL variances; journal entries Madzinga's Draperies manufactures curtains. Curtain #4571 requires the following: Direct material standard 10 square yards at $5 per yard Direct labor standard 5...

Answered: 1 week ago

Question

★★★★★
4. (a) A steel beam is 12 m long when installed at 32 C. Determine how much does its length change when it changes temperature from -23 C to 55 C. For steel = 1.1 105 C. [PHYS0030 MID-TERM...

Answered: 1 week ago

Question

★★★★★
5.2 Assuming the workstation currently has one hard drive installed, what additional hardware would be necessary to implement each of the two methods? 5.3 What additional fault tolerance method would...

Answered: 1 week ago

Question

★★★★★
The outstanding capital stock of Cullumber Corporation consists of 2 , 2 0 0 shares of $ 1 0 0 par value, 7 % preferred, and 4 , 9 0 0 shares of $ 5 0 par value common. Assuming that the company has...

Answered: 1 week ago

Question

★★★★★
Draw a Feynman diagram for the reaction n + v p + .

Answered: 1 week ago

Question

★★★★★
Many hospitals have regularly scheduled surgery and active emergency departments. Based on the information in the Mini-Case Medical Economies of Scope, could it be more cost effective to have...

Answered: 1 week ago

Question

★★★★★
In 2018, the U.S. Centers for Disease Control and Prevention (CDC) is cutting 80% of its epidemic prevention activities overseas. The former chief of the CDC says that this decision would...

Answered: 1 week ago

Question

★★★★★
New York City has licensed street vendors for more than a century. It currently provides only a small number of general vending licenses. The waiting list is very long and, aside from military...

Answered: 1 week ago

Question

★★★★★
A payment of $500 within the discount period reduced the balance owed on an invoice from $1450.61 to $943.00. What was the discount rate for prompt payment?

Answered: 1 week ago

Question

★★★★★
A merchant pays a 2.9% fee to the RBC Royal Bank on all Visa sales. a. What amount will he pay on sales of $28,476 for a month? b. What were his gross sales for a month in which the bank charged fees...

Answered: 1 week ago

Question

★★★★★
Determine the payment required to settle the invoice on the indicated payment date.

Answered: 1 week ago

Previous Question Next Question