2) Two firms compete in a market with the following characteristics: P=200-0.5Q=200-0.5(q+q) TC=5q TC=10qz Find the...

 

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2) Two firms compete in a market with the following characteristics: P=200-0.5Q=200-0.5(q₁+q₂) TC₁=5q₁ TC₂=10qz Find the prices, output levels, and profits of the two firms if a) the market is characterized by Bertrand competition. You may assume that prices can't be increased or decreased by more than $0.01. b) Using the same information, solve for output, price, and profit if the market is characterized by Cournot competition. Show your work! c) Now do the same thing, but assume Stackleberg duopoly. Show your work! 2) Two firms compete in a market with the following characteristics: P=200-0.5Q=200-0.5(q₁+q₂) TC₁=5q₁ TC₂=10qz Find the prices, output levels, and profits of the two firms if a) the market is characterized by Bertrand competition. You may assume that prices can't be increased or decreased by more than $0.01. b) Using the same information, solve for output, price, and profit if the market is characterized by Cournot competition. Show your work! c) Now do the same thing, but assume Stackleberg duopoly. Show your work!