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Just question ii and v please A market has a demand curve given by Qt=4503P. All suppliers have identical total cost function, TC=8Q+2,000 and produce
Just question ii and v please
A market has a demand curve given by Qt=4503P. All suppliers have identical total cost function, TC=8Q+2,000 and produce homogeneous goods. For each of the following market structures, compute the output produced by each firm (if possible), the total industry output, the market price and each firms' (if possible) profit. i) There is only one firm in the industry (Monopoly) [2 marks] ii) There are many small firms in the market (Perfect Competition) [2 marks] iii) There are two firms in the industry (Firm 1 and Firm 2), compete in quantities, and choose quantities simultaneously (Cournot duopoly) [4 marks] 4 iv) There are two firms in the industry (Firm 1 and Firm 2), compete in quantities, and firm 1 moves first. (Stackelberg duopoly) [4 marks] v) How the solutions would change in (iii) if MC1=4 and MC2=8 ? |4 marks vi) How the solutions would change in (iii) if there are three identical firms? |4 marks|Step by Step Solution
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