Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 30, 2024

Problem 3: Cournot Competition and Price-cost Margin. The demand for a product is Q=aP/2. If there are 4 firms in an industry and marginal cost

Problem 3: Cournot Competition and Price-cost Margin. The demand for a product is Q=aP/2. If there are 4 firms in an industry and marginal cost is MC= 20, then the price in Nash equilibrium is P= 56. What is a?

Hint. Use the formula discussed in class, P MC/ P = 1 /n ,

where n is the number of firms, and is the absolute value of the elasticity of demand.

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

Analyzing Superfund Economics, Science And Law

Authors: Richard L Revesz, Richard B Stewart

1st Edition

1317354796, 9781317354796

More Books

Students also viewed these Economics questions

Question

★★★★★

Give the product of each of the following reactions: a. b. c. d. OHH, . CHCHCH,N12 catalytic Zo outo 0 auda CH3CCI + 2 1. HCI, NaNO2 22. H20, Cu20, Cu(NO32 catalytic

Answered: 1 week ago

Question

★★★★★

Discuss three trends in communications and networking.

Answered: 1 week ago

Question

★★★★★

To what extent do you agree with the idea that intelligence is a single ability (g), as opposed to separate unrelated abilities (s)?

Answered: 1 week ago

Question

★★★★★

Altidore Inc. operates a calendar-year-end business that suffers from dramatic seasonal variation in taxable income. For example, it often operates at a net loss for the first two quarters of the...

Answered: 1 week ago

Question

★★★★★

Define function (p:prefix u p) that prepends string u on every element of a promise list s in racket. We can specify the prefix function as prefix(u, s) = {u v | v s}, where u v is string...

Answered: 1 week ago

Question

★★★★★

Question 4 Needs Grading Clean Dish Inc manufactures dishwashing detergent. The detergent goes through two departments: Mixing and Packaging. The company accountant has assembled the information...

Answered: 1 week ago

Question

★★★★★

For the company 7-eleven, briefly describe their current inventory management, processes and functions employed within that infrastructure.

Answered: 1 week ago

Question

★★★★★

The information that follows pertains to Julia Company: (a) Temporary differences for the year 2024 are summarized below. Expenses deducted in the tax return, but not included in the income...

Answered: 1 week ago

Question

★★★★★

Provide 2 business threats as part of SWAT Analysis for Booktopia Pty Ltd (Australian online bookstore) based on one of the following trends: Political, Economic, Social and Cultural, Technological,...

Answered: 1 week ago

Question

★★★★★

A BA is documenting their planning and monitoring experience. Which task covers the question, "Have you decided how your deliverables were going to be reviewed and accepted?"

Answered: 1 week ago

Question

★★★★★

2 Part 2 of 2 6 points Required information [The following information applies to the questions displayed below.] Tamar Company manufactures a single product in two departments: Forming and Assembly....

Answered: 1 week ago

Question

★★★★★

3. Mention three examples where you distorted information that you had taken from your memory and where others made you aware of the fact that you had distorted the information. Did it create a...

Answered: 1 week ago

Question

★★★★★

4. Think of two units of information you have received during the course of the day. Connect these two units of information and try to create completely new information that did not exist in the...

Answered: 1 week ago

Question

★★★★★

5. What do you think is meant by the phrase giving priority to what we already know?

Answered: 1 week ago

Previous Question Next Question