Hand written solutions are strictly prohibited Suppose that identical duopoly firms have constant marginal costs of $10 per unit. Firm 1 faces a demand function of01 = 70 - 2p1 + 1p2,where q₁ is Firm 1's output, p₁ is Firm 1's price, and p2 is Firm 2's price. Similarly, the demand Firm 2 faces is92 = 70-)-2p2+1p1.Solve for the Bertrand equilibrium.In equilibrium, p₁ equals $ and 1 P2 equals $. (Enter numeric responses using integers.)

The Bertrand model of oligopoly is a non-collusive oligopoly model that has two or more firms…

Suppose that identical duopoly firms have constant marginal costs of $10 per unit. Firm 1 faces a demand function of 9₁ =70-2p₁ + 1P2, where 91 is Firm 1's output, p₁ is Firm 1's price, and p2 is Firm 2's price. Similarly, the demand Firm 2 faces is 92 z =70 − 2p2 +1P1. Solve for the Bertrand equilibrium. In equilibrium, p₁ equals $ and P2 equals $ (Enter numeric responses using integers.)

Suppose that identical duopoly firms have constant marginal costs of $10 per unit. Firm 1 faces a demand function of 9₁ =70-2p₁ + 1P2, where 91 is Firm 1's output, p₁ is Firm 1's price, and p2 is Firm 2's price. Similarly, the demand Firm 2 faces is 92 z =70 − 2p2 +1P1. Solve for the Bertrand equilibrium. In equilibrium, p₁ equals $ and P2 equals $ (Enter numeric responses using integers.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

the firm faces additional shipping costs. In particular, it incurs a per unit cost of 10 for shipping output from Factory 1 to the market and a per unit cost of 5 for shipping output from Factory 2 to the market. How much does it charge per unit of output?
Average Total Cost (Dollars per bike) QQ = 100 QQ = 200 QQ = 300 QQ = 400 QQ = 500 QQ = 600 1 140 60 40 80 160 320 2 230 110 40 40 110 230 3 320 160 80 40 60 140
words about the negative/positive impacts of Corona virus (COVID19) on tourism sector in Oman
Will the long-run customer relationship and sales gains from the promotion justify its costs?
Bags/Participants Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200 $1,700 $1,200 $2,900 300 $1,700 $2,700 $4,400 400 $1,700 $5,200 $6,900 500 $1,700 $9,000 $10,700 600 $1,700 $15,000 $16,700 700 $1,700 $23,800 $25,500 800 $1,700 $36,800 $38,500 900 $1,700 $55,800 $57,500 1,000 $1,700 $83,000 $84,700 Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? At what quantity of bags will profits be maximized? A Use the profit maximizing rule, MR ≥ MC, buy 300 bags. B Use the profit maximizing rule, MR ≥ MC, buy 200 bags. C Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 300. D Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 200.
(a) A manufacturer has a fixed cost of $2200 and a production cost of $ 60 for each unit produced. The price-demand function was determined to be p(x)=800-2x. (i) Derive the cost function, C(x). (i) Find the revenue function, R(x).
Quality solution for better ratings please
The 1,850 residents of Great Donut Island are all fishermen. Every morning they go to the nearest port to launch their fishing boats and then return in the evening with their catch. The residents are evenly distributed along the 20-mile perimeter of the island. Each port has a fixed cost of $1,850/day. If the optimal number of ports is 7, what must be the per mile travel cost? Instructions: Round your answer to the nearest penny (2 decimal places).
Process mapping is a tool that reduces processes to their component parts or activities and helps identify and then eliminate non-value-added activities, (waste) or delays within a process. Process mapping is valuable in purchasing, especially when attempting to streamline the flow of material or information between suppliers and a purchaser.
Distinguish between past and present designs in the light of economic efficiency
Does providing customized products generally involve less capital investment or less skilled labor, when compared to more standardized products?
(a) How many vacuums are supposed to be sold to achieve break even? (b) If Primark wants to earn a profit of $36,000, how many vacuum must be sold?