Please I need help for part E and F. I have the intuition in mind but I am not too sure about it. I thought about reversing the inverse demand function given so it now looks like Q = 30 - P. Since Bertrand is concerned about prices, then we can solve for p1 and p2 using the reversed of the inverse demand function (P = 30 - Q). From here, we use the same familiar procedure to solve for the equilibrium price which I think will be the same.Please help explain if my understanding is correct and provide further explanation for me. Thanks for the help. Consi der Hhe fallowing» The inverse femand function is givan by p= 30-@Cournet medel.where Q = E,+* Firm 13 marginal cost is $6lei=6). Fivm 2 uses a nemtechaulagyThere is nothat it's marginal cost is $3 (6=3).fixed cortSoThe fwo fims chooce thairand Compete onlyJame).Answer the follming puestions.O Derive Firm 1 amd Firm 2% vation furtions reupertivaly.o Solve Hhe Harh equilibrium ( ", q")O What is He equilibrinmlevel for eah firm.quenti tias simultaneculy(So it's aone- shot simultaneausonceprice and what is Hhe profitSuppore there isIim 2. Wlhat is the highert price that Firm I iswilling to paj for this newo Mow let's chauge the setup from Coumet campetitionto Bertrand Competitin, while maintaining all eftheraJAump tins. What is He equilibium price?O Suppon the fwe finms engage in Betrand (ompetitionWhat is the hijhut price that Fim 1 o millingfor He new feihnly?* market for the teihue lagy uped byto

e. Bertrand competition is price competition, i.e. the firm that sets the lowest price captures…

Answered: O Now lets chauge the setup from (omot…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please I need help for part E and F. I have the intuition in mind but I am not too sure about it. I thought about reversing the inverse demand function given so it now looks like Q = 30 - P. Since Bertrand is concerned about prices, then we can solve for p1 and p2 using the reversed of the inverse demand function (P = 30 - Q). From here, we use the same familiar procedure to solve for the equilibrium price which I think will be the same.

Please help explain if my understanding is correct and provide further explanation for me. Thanks for the help.

Consi der Hhe fallowing
» The inverse femand function is givan by p= 30-@
Cournet medel.
where Q = E,+
* Firm 13 marginal cost is $6lei=6). Fivm 2 uses a nem
techaulagy
There is no
that it's marginal cost is $3 (6=3).
fixed cort
So
The fwo fims chooce thair
and Compete only
Jame).
Answer the follming puestions.
O Derive Firm 1 amd Firm 2% vation furtions reupertivaly.
o Solve Hhe Harh equilibrium ( ", q")
O What is He equilibrinm
level for eah firm.
quenti tias simultaneculy
(So it's a
one- shot simultaneaus
once
price and what is Hhe profit
Suppore there is
Iim 2. Wlhat is the highert price that Firm I is
willing to paj for this new
o Mow let's chauge the setup from Coumet campetition
to Bertrand Competitin, while maintaining all efther
aJAump tins. What is He equilibium price?
O Suppon the fwe finms engage in Betrand (ompetition
What is the hijhut price that Fim 1 o milling
for He new feihnly?
* market for the teihue lagy uped by
to

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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