Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 12, 2024

Tom is a monopolist input supplier to Dick and Harry. Tom's marginal cost is 1. Dick and Harry are duopolists with production function q =

Tom is a monopolist input supplier to Dick and Harry. Tom's marginal cost is 1. Dick and Harry are duopolists with production function q = x1/2 . No firm has fixed costs. The demand for the final product is given by Q = 100 - p.

a) Assume Dick and Harry buy the input from Tom at price k. What are their cost functions?

b) Find the Cournot equilibrium quantities.

c) What price, k, should Tom set?

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

Macroeconomics

Authors: David Colander

8th edition

978-0078004407, 78004403, 978-0077247171, 77247175, 978-0077307110

More Books

Students also viewed these Economics questions

Question

★★★★★

(a) IAS 36, Impairment of Assets, was published in June 1998. Its primary objective is to ensure that an asset is not carried on the balance sheet at a value that is greater than its recoverable...

Answered: 1 week ago

Question

★★★★★

Shown in right column are the top 10 companies receiving the largest dollar volume of contract awards from the U.S. Department of Defense in a recent year. Use this population data to compute a mean...

Answered: 1 week ago

Question

★★★★★

We throw two dice simultaneously until either a sum of 7 or a sum of 9 occurs. What is the probability that (i) exactly n throws will be needed? (ii) the experiment stops with the last throw having...

Answered: 1 week ago

Question

★★★★★

You are the vice president of International InfoXchange, headquartered in Chicago, Illinois. All shareholders of the firm live in the United States. Earlier this month you obtained a loan of 5...

Answered: 1 week ago

Question

★★★★★

Dakota Company experienced the following events during Year 2: 1. Acquired $10,000 cash from the issue of common stock. 2. Paid $10,000 cash to purchase land. 3. Borrowed $10,000 cash . 4. Provided...

Answered: 1 week ago

Question

★★★★★

Statement of profit or 2020 2019 E Sales Revenue 700,000 Less Cost of goods sold 4539,000) 625,000 -(468,750) Ge Profit 161,000 156,250 Administration expenses 42.000 37,500 Selling & Distribution...

Answered: 1 week ago

Question

★★★★★

An insurer has $2,500,000 in total earned premiums for the year. It experiences and pays out in one year $1,000,000 in total losses and $500,000 in underwriting expenses. As a result, under statutory...

Answered: 1 week ago

Question

★★★★★

Shakeia Duncan wants to know what home price she can afford. Her annual gross income is $ 4 6 , 8 0 0 . She owes $ 8 3 0 per month on other debts and expects her property taxes and homeowner's...

Answered: 1 week ago

Question

★★★★★

A lab orders a number of chemicals from the same supplier, with a lead time two weeks. The assistant manager of the lab must determine how much of one of these chemicals to order. Usage of the...

Answered: 1 week ago

Question

★★★★★

Spec, Inc.s stock is expected to generate a dividend and terminal value one year from now of P57.00.The stock has a beta of 1.3, the risk-free interest rate is 6 percent, and the expected return...

Answered: 1 week ago

Question

★★★★★

1. Honda is planning to introduce new electric car in 2 years. Describe your role in detail as Procurement and Purchasing Manager of Honda to ensure this product will be ready to launch in two years....

Answered: 1 week ago

Question

★★★★★

Physicians offering concierge services are offering: A . A low cost service to a broad market B . A low cost service to a narrow market C . A differentiated service to a broad market D . A...

Answered: 1 week ago

Question

★★★★★

1. Information that is currently accessible (recognition).

Answered: 1 week ago

Question

★★★★★

8. Based on the model in Fig. 10.2 in this chapter, analyse yourself and find out which cell you would place yourself in. Let another person in the group analyse you. Did he/she choose the same cell...

Answered: 1 week ago

Question

★★★★★

9. Take four examples from your own everyday life where someone has tried to influence you. Which of the seven influencing techniques mentioned above were used? Did they use any other influencing...

Answered: 1 week ago

Previous Question Next Question