Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 27, 2024

Suppose firm A and B operate under conditions of constant marginal and average cost but that MCA = 10 and MCB = 8. The demand

Suppose firm A and B operate under conditions of constant marginal and average cost but that MCA = 10 and MCB = 8. The demand for the firm's output is given by Q = 500 - 20P

a) If the firms practice Bertrand competition, what will the Nash Equilibrium market price be? What will be the profits for each firm?

b) If the firms practice Cournot competition, what will be the Nash equilibirum market price? What will be the profits for each firm?

c) If the firm A is the leader and firm B is the follower in this market, what will be the equilibrium price? What will be the profits for each firm?

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

Intermediate Microeconomics and Its Application

Authors: walter nicholson, christopher snyder

11th edition

9781111784300, 324599102, 1111784302, 978-0324599107

More Books

Students also viewed these Economics questions

Question

★★★★★

In the circuit of Fig. 11.72, load A receives 4 kVA at 0.8 pf leading. Load B receives 2.4 kVA at 0.6 pf lagging. Box C is an inductive load that consumes 1 kW and receives 500 VAR. (a) Determine I....

Answered: 1 week ago

Question

★★★★★

Please help with this Matlab code, and can you explain what you are doing within your code. Solar panel is receiving radiation from the sun and heating water at a constant rate flowing in the channel...

Answered: 1 week ago

Question

★★★★★

5. The first principle of economics discussed in Chapter 1 is that people face tradeoffs. Use a production possibilities frontier to illustrate societys tradeoff between a clean environment and high...

Answered: 1 week ago

Question

★★★★★

The Ocean City water park is considering the purchase of a new log flume ride. The cost to purchase the equipment is $3,500,000, and it will cost an additional $250,000 to have it installed. The...

Answered: 1 week ago

Question

★★★★★

Suppose firm A and B operate under conditions of constant marginal and average cost but that MCA = 10 and MCB = 8. The demand for the firm's output is given by Q = 500 - 20P a) If the firms practice...

Answered: 1 week ago

Question

★★★★★

( Annuity payments ) To buy a new house, you must borrow $ 1 4 5 , 0 0 0 . To do this, you take out a $ 1 4 5 , 0 0 0 , 2 0 - year, 9 percent mortgage. Your mortgage payments, which are made at the...

Answered: 1 week ago

Question

★★★★★

Glycol is added to aviation gasoline because it: [A] reduces evaporation of petrol [B] increases efficiency of petrol [C] prevents freezing of petrol [D] reduces consumption of petrol

Answered: 1 week ago

Question

★★★★★

When ice cubes are made, the entropy of water: [A] does not change [B] decreases [C] increases [D] may either increase or decrease depending on the process used

Answered: 1 week ago

Question

★★★★★

In 1817, who attempted to sort elements with similar properties in a logical order into groups? [A] Emmy Noether [B] Henry Moseley [C] Dobereiner [D] Mendeleev

Answered: 1 week ago

Question

★★★★★

Sodium bicarbonate decomposes above 70 C, making it usable in bakery products. What end product of this thermal decomposition process contributes to its use in baking? [A] Hydrogen [B] Carbon Dioxide...

Answered: 1 week ago

Question

★★★★★

3. Which among the following is popularly called Hypo? [A] Silver bromide [B] Silver nitrate [C] Sodium thiosulphate [D] Sodium phosphate

Answered: 1 week ago

Question

★★★★★

=+is the impulse to work less, because greater incomes mean workers can afford to consume more leisure. The substitution effect is the impulse

Answered: 1 week ago

Question

★★★★★

=+ f. Do you think that this analysis provides a good way of thinking about a minimumwage law? Why or why not?

Answered: 1 week ago

Question

★★★★★

=+ c. How would this change in productivity affect the labor market if unions prevent real wages from falling?

Answered: 1 week ago

Previous Question Next Question