Show analytically that equilibrium price under Cournot is greater than price under perfect competition but lower than monopoly price. • Consider a duopoly for a homogenous product with demand Q = 10 - p/2. Each firm's cost function is given by C = 10 + q(q + 1). Determine the values of the Cournot equilibrium.
Q: Don't use ai to answer I will report your answer Solve it Asap with explanation and calculation
A: Game (a)Find Nash Equilibria:1. (A, A):If Player 1 plays A, Player 2's best response is A (since 1…
Q: Question 8 Homework • Answered ⚫ Due Jul 24th, 11:50 PM Assume University Bank desires to hold 10%…
A: The question involves analyzing the T-account for University Bank and determining what changes can…
Q: Consider the following sequential move game. First player A must decide whether to play Out or In.…
A: Let's break down the reasoning step-by-step:Game Structure:Player A's Initial Decision:Out: The game…
Q: Other goods per month 2. (10 points) RB Inc., is a wholesaler specializing in dry foods, such as…
A: Step 1:2. Solution; In the given passage it has been said that rice and dry beans are inferior…
Q: asaaap soon
A: Approach to solving the question: Hi student! I hope this can help you. If you have question feel…
Q: 3. Consider the same game as in the previous question and suppose both firms choose between three…
A:
Q: 2. In this question, your goal will be to understand whether learning in games is always valuable…
A: For Part III of the question where both players observe nature's move (and it is common knowledge),…
Q: The demand for two goods depends on the prices of Good 1 and Good 2, p₁ and p₂ Q=135-27p1 +9 9p2…
A: I'd be glad to help you solve for the equilibrium values of p1, Q1, p2, and Q2 based on the…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A:
Q: List two methods that can be used to address theissue of Multicollinearity
A: Multicollinearity occurs when our independent variables in a regression model are highly correlated…
Q: Perfect price discrimination or first-degree price discrimination differs from second-degree price…
A: First-degree price discrimination, also known as perfect price discrimination, is a pricing strategy…
Q: Please correct answer and don't use hend raiting
A: Budget Constraint OverviewA budget constraint represents all the combinations of two goods that a…
Q: Don't use Ai
A: To find the nominal interest rate, after-tax nominal interest rate, and after-tax real interest rate…
Q: Explain the concept of a maximum - value function. Explain the Envelope Theorem for unconstrained…
A: Approach to solving the question: Detailed explanation: Examples: Key references:
Q: How did the COVID-19 pandemic impact the meal delivery industry and Blue Apron's ability to compete?…
A: FEEL FREE TO ASK FOR CLARIFICATIONS.
Q: You agreed with a seller to pay Opel car of $32,000, as follows: you paid $20,000 as aninitial…
A: The total amount the seller will receive after 10 years will be $16,739.11.Summary:Initial Payment:…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: The Atterberg limit is important when we talk about soil. It's named after a scientist called Albert…
Q: not use ai please
A: Here are the detailed steps of the calculations: Given Information:Inspection cost is steady at…
Q: Two firms compete in a market to sell a homogeneous product with inverse demand function P-600-3Q…
A: Step 1:This question refers to analyze the strategic decision making steps and results of two…
Q: Phyllis and her employer, Fred, know that she can generate $200,000 of profit per year for his…
A: Phyllis' alternative wage is surely less than $110,000, as evidenced by her agreement to labour for…
Q: What is the term for the phenomenon where exposure to one stimulus influences the response to a…
A: Approach to solving the question:Rational Detailed explanation:The existence of priming effects is…
Q: Consider the following chart. How much is the marginal cost when total output increases from 390…
A: To find the marginal cost when the total output increases from 390 pounds to 450 pounds, we need to…
Q: not use ai please
A: To fill up the table, we need to use the following formula:Total Revenue = Total Product * Product…
Q: For each of the following characteristics, say whether it describes a perfectly competitive firm, a…
A: Let's analyze each characteristic for perfectly competitive and monopolistically competitive…
Q: Given a cost function: C(x) = x² - 200x - 3500 And the following revenue function: R(x) = 6x2-400x…
A: To determine the level of production that will yield a profit of $6,000, we need to solve for (x) in…
Q: None
A: Step 1: Calculate the Marginal Utility per Dollar for Bocce Balls and GumballsTo find the Marginal…
Q: TE 14 21 91 12 21 15 51 Question 13 (4 points) The graph below represents the market for a good in a…
A: Producer surplus, if trade is allowed is the region below the world price, Pw, and above the Supply,…
Q: Do not use chatgpt
A: To answer this question, we need to determine if the terms of trade PS/PT with free trade could…
Q: Don't use chatgpt
A: In simple terms, regression analysis helps predict what's likely to happen and evaluate the…
Q: not use ai please
A: In order to get the new inflation rate when the economy returns to long-run equilibrium after an…
Q: Consider the following table that shows planned aggregate expenditures and tax recceipts for an…
A: Determine the Aggregate Expenditures (AE): Aggregate Expenditures (AE) = Consumption + Investment +…
Q: Don't use ai to answer I will report your answer Solve it Asap with explanation and calculation
A: A monopolistically competitive firm produce a quantity where it's marginal cost gets equal to the…
Q: Solve the problem. Show work and do not use AI
A: Understanding the Loanable Funds MarketThe market for loanable funds is a framework used to…
Q: Don't use Ai
A: When it comes to laundry, Mia has an advantage over Andrew. This shows that, in comparison to…
Q: discuss why is supply and demand and important and how they affect fluctuating prices in the market
A: In economics, supply and demand are fundamental concepts that form the backbone of the market…
Q: The figure shows the production possibility frontier for a country. Suppose the country is producing…
A: Point D:Rice: 12 tons per yearWine: 9 thousand bottles per yearPoint C:Rice: 15 tons per year Wine:…
Q: not use ai please
A: Setting a milk price cap below the equilibrium price of the market may have unforeseen implications.…
Q: How might a particular country's government affect and be involved in international trade?
A: Approach to solving the question: research and explanation Detailed explanation: Governments play a…
Q: Question 2 Horatio consumes 20 fries and 12 shakes per week. The price of fries is $3 each and…
A:
Q: not use ai please
A: Given: M = 81 years Neumann-Morgenstern utility function: U= √M = √81 = 9…
Q: K Wilbur's is the only septic service in a remote village. The firm's total fixed cost is $50 a day…
A: Approach to solving the question: Demand Curve(D) : Plot the relationship between price and quantity…
Q: Question 2. Option pricing (3 marks) BHP Billiton, the leading Australian iron ore mining giant, is…
A: Step 1:Given data:Annual interest rate=2.1%=0.021Semi annual interest…
Q: Do not use Ai and chatgpt please.
A: 1. Long-Run Aggregate Supply (LRAS) Curve:• Slope: The LRAS curve is vertical, indicating that in…
Q: Do not use Ai
A: In monopolistic competition, firms produce where p=MC in the long run because:Marginal Cost (MC)…
Q: Which of the following measures of cost is best described as "the cost of a typical unit of output…
A: Average Variable Cost (AVC): This is the variable cost per unit of output. It is calculated by…
Q: What was the relationship between African Americans and New Deal programs? O Many programs allowed…
A: The New Deal was a series of programs, public work projects, financial reforms, and regulations…
Q: 30. Gardner's work has led to new approaches in: a) Clinical diagnosis b) Educational assessment c)…
A: The question refers to Gardner's work, which likely refers to Howard Gardner, a developmental…
Q: lace Meeting Sawraj Kaur Sawraj Kaur Patty Zakaria's screen Abhishek sharma Rajpreet kaur D... Patty…
A: The price elasticity of demand is calculated as the percentage change in quantity demanded divided…
Q: Due: Monday, July 29, 2024, 11:59 PM What are the 3 main tools of the Fed? Which one is used most…
A: Approach to solving the question: The Federal Reserve (Fed) has three main tools to conduct…
Q: 3) You make a lightweight compact foldable windbreaker. Your brand, Desert Wind Jackets, is well…
A:
Step by step
Solved in 2 steps
- Please answer the attached question below. It is part of Industrial Economics.a) Suppose that the two firms engage in Cournot competition. Find the equilibrium price PNE in the industry, the equilibrium outputs QANE and QBNE, as well as the profits πANE and πBNE, for each firm. b) Suppose the marginal cost for firm B increases from $20 to $140, while everything else remains unchanged. Find the new equilibrium price PNE in the industry, the new equilibrium outputs QANE and QBNE, as well as the new profits πANE and πBNE for each firm. c) Suppose that, in addition to the marginal cost increase from $20 to $140 from sub question b), firm B also has a fixed cost of $2500, out of which $2100 may be recouped if it shuts down; everything else remains unchanged. In this case, what will firm B’s optimal output be? (Justify your answer.) What will firm A’s profit be?None
- SUB-SECTION B2 13 Electra and Luminux are the only two firms who provide electricity in a local market as a Cournot duopoly. The electricity provided by the two firms is identical and consumers are indifferent about which firm they will purchase electricity from. The market inverse demand for electricity is P = 100 - 2Q, where is the aggregate quantity of electricity produced by the two firms, qe qL. Electra has a marginal cost of 12, while Luminux has a marginal cost of 20. Assume that neither firm has any fixed costs. (a) Determine each firm's reaction curve and graph it. How much electricity will each firm produce in a Cournot equilib- rium? (c) What will the market price for electricity be? How much profit does each firm make? (e) Suppose now that the two firms move sequentially with one of them acting as a Stackelberg leader. Do you expect the outcome to the closer to perfect competition when Electra, or when Luminux, moves first? Explain your answer.PleaseShow analytically that equilibrium price under Cournot is greater than price under perfect competition but lower than monopoly price. Consider a duopoly for a homogenous product with demand Q = 10 - p/2. Each firm's cost function is given by C = 10 + q(q + 1). Determine the values of the Cournot equilibrium.
- Consider the following Stackelberg duopoly. Both firms produce a homogenous good. Firm 1 chooses how much to supply first. Firm 2 chooses how much to supply after observing the quantity supplied by firm 1. The market demand is Q= 100 – 4 P. For firm i, the total cost of production is TC(q) =5q,+2. What is the optimal quantity supplied by firm 12 10 20 30 40 QUESTION 6 Consider the following Stackelberg duopoly. Both produce a homogenous good. Firm 1 chooses how much to supply first. Firm 2 chooses how much to supply after observing the quantity supplied from firm 1. The market demand is Q= 100 - 4P. For firm i, the total cost of production is TC(q) =5q,+2. What is the market clearing price? O 10 O 15 20 O 25Consider two Cournot oligopolists, firm 1 and firm 2, in a homogenous product market. The market demand is P = 100 - 3Q and each firm has a constant marginal cost MC=10. The market price of equilibrium and total quantity in the market is: Select one: O a. P* 30 and Q* = 20 O b. P* 40 and Q* = 20 ○ C. P* 40 and Q* = 30 d. P20 and Q* = 30Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that P = ATC at the optimal quantity for each firm. Furthermore, the quantity the firm produces in long-run equilibrium is greater than the efficient scale. True or False: This indicates that there is excess capacity in the market True False engines. Monopolistic competition may also be socially inefficient because there are too many or too few firms in the market. The presence of the externality implies that there is too much entry of new firms in the market.
