1. Questions 46-50 are based on scenario 2. Scenario 2: Consider a market that only include two large firms. Firm 1 is owned by Joe and firm 2 is owned by Jiee. The market inverse demand isP= 100Q. Note thatQ=q1+q2. Firm1hasacostfunctionofC1=2q1,andfirm2hasacostfunctionofC2=3+3q2.
2. Refer to scenario 2. Use a Cournot model to calculate the level of production of firm 1. A. 50 B.33 C. 32 D. 0
3. Refer to scenario 2. Use a Cournot model to calculate the level of production of firm 2. A.50 B. 33 C. 32 D. 0
4. Refer to scenario 2. Use a Cournot model to calculate the market price. A.100 B. 50 C. 35 D. 0
5. Refer to scenario 2. Use a Cournot model to calculate the profit of firm 1. A.0 B. 1021 C. 1089 D. 1500
6. Refer to scenario 2. Use a Cournot model to calculate the profit of firm 2. A. 0 B. 1021 C. 1089 D. 1500