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[TRUE / FALSE] Please explain
In the Stackelberg outcome, the leader firm’s profit is never smaller than his profit at the Cournot outcome.
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- please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearlyPriya2P 14 13 12 11 10 9 8 7 6 5 QD 50 100 150 200 250 300 350 400 450 500 Consider a market with the above demand and two firms. Both firms have a constant marginal cost of 7. 1. What price should these firms charge to maximize total industry profit? ..............(Note: the marginal condition we learned will work here but you need to be careful because the changes in quantity on the schedule are not 1. Because of this, you might want to use a brute force approach here. It's worth thinking about how you would reconcile it with the marginal condition though. Also, the marginal condition doesn't match exactly so take the best number from the schedule.) 2. Assuming that if they set the same price, they split the market evenly, what will the profit of each firm be if they both set the above price?........... 3. Now imagine that the…
- oligopoli 5.1 The following table represents the market share percent- age for each firm in a hypothetical industry. Firm Market Share A 15 C D E 20 B 6 12 7 H 19 11 F G 10 a. Calculate the four-firm concentration ratio for this industry. b. Calculate the Herfindahl-Hirschman Index (HHI) for this industry. c. Would the Justice Department consider this industry as unconcentrated, moderately concentrated, or concen- trated? Why?3) You were recently chosen to be the new CEO of Rocket to the Moon, a company that contracts with NASA and many corporations to launch satellites. Your Business Intelligence Officer, whom you affectionately refer to as Rocketman, estimates that the worldwide market demand curve for rocket launches is Q = 25,000 P/20. Including Rocket to the Moon, there are a total of three firms in the rocket business, each with a marginal cost of $200K per rocket launch. Firms in the rocket business must build each rocket they launch from the ground up, so there is considerable effort put into forecasting market demand, as well as the actions of competitors. a. What model would best characterize the rocket business, Cournot or Bertrand? Why? b. What is the equilibrium price, quantity, and profits for each firm in the market, assuming it is characterized by Cournot competition? How does your answer change if you assume the market is better characterized by Bertrand's competition? In what follows,…Only typed answer
- 40 36 32 28 24 20 16 12 8 47 0 P 4 Firm in oligopoly market MC 2 MR MC 1 D 8 12 16 20 24 28 32 40. Assuming MC2 to be the true marginal cost curve for this oligopoly firm, what price will this firm charge? (a) $8 Ⓒ (b) $12 (c) $15 (d) $20 QIF YOU ANSWER THIS ALREADY, PLEASE GIVE IT TO ANOTHER TUTOR P 14 13 12 11 10 9 8 7 6 5 QD 50 100 150 200 250 300 350 400 450 500 Consider a market with the above demand and two firms. Both firms have a constant marginal cost of 7. 1. What price should these firms charge to maximize total industry profit? (Note: the marginal condition we learned will work here but you need to be careful because the changes in quantity on the schedule are not 1. Because of this, you might want to use a brute force approach here. It's worth thinking about how you would reconcile it with the marginal condition though. Also, the marginal condition doesn't match exactly so take the best number from the schedule.) 2. Assuming that if they set the same price, they split the market evenly, what will the profit of each firm be if they both set the above…Ch 24 Economics If there are two firms Atlas and Bowden in this market with the same earlier total cost function of TC = 500 + 10Q^2 , demand function of P(q)= 220-10q and they engage in Cournot competition, what is each firm's equilibrium quantity, price, and profit? [NB: round quantities to nearest integer to find equilibrium quantity, price, and profit
- An industry consists of three firms with sales of $345,000, $750,000, and $215,000. a. Calculate the Herfindahl-Hirschman index (HHI). Instruction: Enter your response rounded to the nearest integer. b. Calculate the four-firm concentration ratio (C4). c. Based on the FTC and DOJ Horizontal Merger Guidelines described in the text, is the Department of Justice likely to attempt to block a horizontal merger between two firms with sales of $345,000 and $215,000? No Yes2What are the dominant types of firms that exist in Dubai? Provide two (2) examples per type identified?