Microeconomic Theory
Microeconomic Theory
12th Edition
ISBN: 9781337517942
Author: NICHOLSON
Publisher: Cengage
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Chapter 15, Problem 15.11P

a)

To determine

Reason for extent of firm’s market.

b)

To determine

To find:

Profit maximizing price.

c)

To determine

To find:

Derivation of p=p*=c+tn

d)

To determine

To find:

Profit at equilibrium is tn2K

e)

To determine

To find:

Number of firms to enter in long-run.

f)

To determine

To find:

Socially optimal level of differentiation

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Students have asked these similar questions
Now suppose United Air Lines enters the Atlanta market. Consider this to be an oligopoly market with two firms that behave in a Cournot Model fashion. The market demand schedule is cost schedule for both firms are: P = 400 - .5*Q, and firm level cost for both firms is MC=AC=Scomp=100. What is the Cournot Market Price? Fill in the blank below with your answer. Your answer should be entered as a whole number such as 102. If you get 102.56, do not round or enter any decimal places, just enter 102 and nothing else for the answer.
Now consider Atlanta as an oligopoly market with five airlines that behave in a Cournot Model fashion.  The Atlanta market demand schedule is:P = 400 - .5*Q.The Cost schedule for Delta is:MC=AC=Scomp=100.The Cost schedule for the other four firms (United, Southwest, et al) is:MC=AC=Scomp=100.What is the Cournot Market Price
Two firms compete in a market to sell a standardized product and the inverse demand in the market is P = 400 – Q where Q = Q1 + Q2.  The cost functions are: C1(Q1) = 8Q1 and C2(Q2) = 36Q2.  If this market is characterized by a Stackelberg oligopoly, what is the optimal amount for the leader (firm 1) to produce?
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