Type out the correct answer ASAP with proper explanation 1.Assume inverse demand of P = 20 - 0.2Q where P is the market price and Q is the market demand. Also assume that there are 2 firms who both have a marginal cost of 2.   (a) In a Cournot context, what is the equilibrium price, market quantity, and profit for each firm?    (b) In a Bertrand context, what is the equilibrium price, market quantity, and profit for each firm?

Q: 1. Investment in Bertrand competition with differentiated goods In the market for electric cars,…

A: IntroductionWithin the electric car market, there exists competition between two distinct firms,…

Q: QUESTION 20 Firms A and B engage in Bertrand competition, where q4 = 26 – 2P, + 2Pg, 9, = 26 + 2PA –…

A: We will solve this question using single variable maximization and substitution method. The given…

Q: 1. Suppose that the market demand curve for bean sprouts is given by P = 1,680 - 2Q, where P is the…

A: Stackelberg Oligopoly prevails Market demand: P = 1680 - 2Q P = price Q = total industry output…

Q: (g) Let demand for car batteries be such that Q = 100 - 3P. As- sume constant marginal costs of 15.…

A: Perfectly competitive market refers to the market where demand and supply forces decide the…

Q: Please help me with 2 and 3. Thank you

A: a) How many panels will the firm sell in each market?To solve for the number of panels sold in each…

Q: Jayden's profit is maximized when they produce a total of * an amount cardigans. At this quantity,…

A: Given that the market price per cardigan is $25,Total revenue is the total amount of revenue earned…

Q: Firms can choose a location in the linear city of length 1 with fixed cost of 25. Consumer density…

A: In this case, each firm has a market share of 1/4. Therefore, each firm is making a loss of 25. This…

Q: In the town of Fargo there are two bakers, Alma and Blanca. Alma's bread tastes just like Blanca's –…

A:

Q: In an industry there are two firms, R₁ and R₂, producing differentiated products that engage in…

A: There are two firms R1 & R2 , such that R2 is the price follower of R1 . This is because R1 sets…

Q: 4. Suppose that an amusement park is a local monopoly. It has daily fixed costs of $30,000 and…

A: Utility function :U (x , m ) = 10x - x2/4 + m Income of visitors = 200  Price of ride (x) = p  Price…

Q: The following graph illustrates the market for small moving trucks in Bloomington, IN, during…

A: Perfect Competition This kind of market structure implies a market that consists of a large number…

Q: nalization described in my notes, Section 11.1. If the manufacturer he wholesale price equal to its…

A: Marginal profit is the expansion in profits coming about because of the development of one extra…

Q: There are two types of car, distinguished by how fuel efficient they are. Type O is the less fuel…

A: Given Po=250-Qo-Q1/2, P1=120-Q1-Qo/2 Co(Qo)=50 Qo, C1(Q1) = 20Q1  Type 0 car  Po =250-Qo-Q1/2…

Q: the marginal cost of production for laplops and printers is zero. arge only individual prices (not…

A: Question solved below,

Q: Consider a quantity competition setup with two firms simultaneously choosing the quantities. The…

A: The purpose of this question is to explain the Cournot duopoly, each firm makes production decisions…

Q: 3. Chillin (C) and Coffee Break (B) compete in espresso market by selling imperfect substitutes. The…

A: The law of demand refers to the inverse or negative relationship between the quantity demanded of a…

Q: opportunity in tutoring her fellow students before each knowledge of economics eliminates any risk…

A: Efficient quantity is the quantity at perfect competition

Q: Firm A and firm B sell identical Soma to a market that has inverse demand p= 120 – Q where Q is…

A: Cournot competition is a type of economic model where competing firms pick a quantity to deliver…

Q: OURSE: Microeconomics - Perfect Competition, Monopoly and Oligopoly Suppose a market with 2 firms…

A: Perfectly competitive market refers to the market where price is determined by market forces of…

Q: It is the price that each firm will set according to the Nash equilibrium of the simultaneous game:…

A: Given that two firms sell the same good.Firms compete in prices let it be p1 and p2.Marginal cost of…

Q: Your local movie theater uses the same group-pricing strategy described in the chapter – charge…

A: Price discrimination is the process of charging different price from different consumer groups or…

Q: opose Amari operates a handicraft pop-up retail shop that sells phone cases. Assume a perfectly…

A: The total cost (TC) in economics and production theory is the sum of all expenditures made by an…

Q: Chillin (C) and Coffee Break (B) compete in espresso market by selling imperfect substitutes. The…

A: Yes, it can be said that Chilling and Coffee break are both substitutes. From the Chillin's…

Q: 20. Two-part tariff." A two-part tariff is another price-discrimination method where the producer of…

A: Given,

Q: 1. Suppose the following: I. Two countries each with demand for homogeneous goods given by P(Q) = 40…

A: In a Cournot duopoly, there are two firms selling homogeneous goods. Each firm maximizes its own…

Q: 7) The market demand curve for a homogeneous product is given by p=70-Q where Q is the total…

A: In economics, the marginal cost is the change in the total cost that arises when the quantity…

Q: (I) Compute the marginal rates of substitution of each firm at the Nash equilibrium. Is the Nash…

A: In a strategic game of wins and losses, comprising two players whose only objective is to maximise…

Q: Recall that in perfect competition a firm's demand curve is a horizontal line drawn at the market…

A: The correct option is c. The point at which a firm maximizes output in perfect competition is when…

Q: Consider a differentiated products market with two Bertrand competitors. Firm’s 1 demand curve is…

A: Bertrand competition is a model of competition used in economics, particularly in the analysis of…

Q: PROBLEM (3) Consider the differentiated goods Bertrand price competition model where firms A and B…

A: An oligopoly is a kind of market structure in which only a few firms exist. The few dominate the…

Q: 12. A firm produces two goods in pure competition & has the following TR & TC functions TR=…

A: Cramer's law offers a possibility to solve linear systems of equations with controllers. Hessian can…

Q: of any firm in the industry is given by 4q. a. What will the equilibrium look like if 2 Cournot…

A: Given , Inverse demand function,   P=100-2Q, Total Cost(TC)=4QTotal Output(Q)= Q1+Q2   ​​Q1= Output…

Q: 1. Suppose that fixed costs for a firm in the monopolistically competitive automobile industry are…

A: Economies of scale is a microeconomic concept and is related to the cost of production.It implies a…

Q: Q: Firms A and B are two firms supplying products in two separate differentiated goods markets.…

A: Costs refer to the expenses that are incurred in the process of production of goods or services.…

Q: Question 1 The market for sunglasses has one dominant firm, Luxottica, and 10 small firms. The total…

A:

Q: 3. Chillin (C) and Coffee Break (B) compete in espresso market by selling imperfect substitutes. The…

A: In microeconomics, two goods are substitutes if the products could be used for the same purpose by…

Q: 1. Suppose that fixed costs for a firm in the monopolistically competitive automobile industry are…

A: Internal economies of scale refers to the gradual decline in cost of production when firm expand the…

Q: There are two different types of producers of a good in an industry (Type A and Type B). The…

A: Economic cost refers to the combination of losses of any goods that have a value attached to them by…

Q: 7. You are a drug smuggler. Your profit depends on how many bales of marijuana (M) and blocks of…

A: The want satisfying  power of the commodity is called utility. It is measured in Utils. The utility…

Q: Select the strategy the firm is utilizing. Know the Future, Inc. is able to charge each customer…

A: Price discrimination is the pricing strategy used by firms to maximize their profit and generate…

Q: Assume a market for petroleum products, and let D denote the demand of petroleum products while MC…

A: Monopolist: A monopolist is a single seller in the market and hence he faces the downward sloping…

Q: Problem 2. Once again refer to the market for motherboards and assume there is only one firm that…

A: Given  Cost function: C(Q)=Q22        ....(1) Marginal cost formula: MC=dCdQ Marginal revenue…

Q: 2. Suppose the home country open up to free trade and a foreign competitor enters the market. Assume…

A: Cournot duopoly is a type of oligopoly market, where there are two firms, which compete in quantity.…

Q: 6. Suppose a firm earns revenue R(Q) = aQ – bQ² and incurs cost C(Q) = aQ+ BQ² as func- tions of…

A: Introduction Here revenue and cost of a firm has given. Kuhn tucker method has some condition which…

Q: A computer hardware firm sells both laptop computers and printers. Through the magic of focus…

A: The measure that depicts various quantities of goods and services being demanded at various levels…

Q: Suppose a manufacturer and its retailer face the problem of double marginalization described in my…

A: Profit is the difference between total revenue and total cost. The total revenue is the revenue that…

Q: In a Krugman type of autarky environment, one was able to derive two equilibrium conditions. In…

A: The study and evaluation of corporate financial concerns using abstract economic concepts and ideas…