question 3 only D, E and F please thank you All question are with regards to the following set up. There are two firms A and B. Firmscompete in a Cournot Duopoly in Karhide. They set quantities A and qB. Inverse demand isP(qA + 9B) = 18 - 9A-9B and costs are C(q) = 3 * q for both firms. Firm B is a domestic firm(in Karhide,) and firm A is a foreign firm (from Orgoreyn.) The government of Karhide engagesin a strategic trade intervention by giving firm B a per unit subsidy of s. (That is, when firm Bproduces and sells q units, firm B receives a payment of s *qg from the government.)You must show yourwork at each step, unless the questions is followed by "No work required." (3)Assume that s = 3.(a) Find firm B's profit function under the subsidy. (No work required.)(b) Find firm B's best response function. (You may do this directly or by setting s to zero in yourexpressions from (1b).(c) Why don't I need to ask you to solve for A's best response?(d) Solve for the equilibrium outputs (9A, 96).(e) Solve for the equilibrium price.(f) Solve for firm B profits.

Businesses compete in a Cournot duopoly by simultaneously selecting their production quantities.…

All question are with regards to the following set up. There are two firms A and B. Firms compete in a Cournot Duopoly in Karhide. They set quantities A and qB. Inverse demand is P(9A + 9B) = 18 - 9A-9B and costs are C(q) = 3 * q for both firms. Firm B is a domestic firm (in Karhide,) and firm A is a foreign firm (from Orgoreyn.) The government of Karhide engages in a strategic trade intervention by giving firm B a per unit subsidy of s. (That is, when firm B produces and sells qв units, firm B receives a payment of s*qg from the government.) You must show your work at each step, unless the questions is followed by "No work required."

All question are with regards to the following set up. There are two firms A and B. Firms compete in a Cournot Duopoly in Karhide. They set quantities A and qB. Inverse demand is P(9A + 9B) = 18 - 9A-9B and costs are C(q) = 3 * q for both firms. Firm B is a domestic firm (in Karhide,) and firm A is a foreign firm (from Orgoreyn.) The government of Karhide engages in a strategic trade intervention by giving firm B a per unit subsidy of s. (That is, when firm B produces and sells qв units, firm B receives a payment of s*qg from the government.) You must show your work at each step, unless the questions is followed by "No work required."

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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