just d and e 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 q. Inverse demand isP(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 engagesin a strategic trade intervention by giving firm B a per unit subsidy of s. (That is, when firm Bproduces 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." (4)We now consider the government's choice of s≥ 0. We can see from above thatprofits and outputs depend upon s. With that in mind, let TB(s) and qв(s) denote firm B's profitand output as a function of the subsidy s. Let qa(s) denote firm A's equilibrium output as afunction of s. Let G(s) = πB(s) — 8 * qB(s) denote the government's objective function.(a) We first assume that the government must choose either s = 0 or s = 3. Which of these twochoices makes G(s) bigger?For (b) through (e) we allow the government to choose any s > 0.(b) Find qa(s) and qв(s) as function of s.(c) Find TB (s) as a function of s.(d) Use a first order condition to find the value of s that maximizes G(s). Call this value s*.(e) What is qв(s*)? How does qв (s*) compare to the monopoly output for this market? Explainwhy it makes sense that qB (s*) should take this value.

Given information Demand function P=18-qa-qb C=3q Firm B is domestic firm Firm A is foreign firm…

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 qA and qB. Inverse demand is P(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 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* q3 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 qA and qB. Inverse demand is P(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 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* q3 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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