Gruber and Shyft are ridesharing companies that have a duopoly in Teslandia. They compete over quantity,...
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Gruber and Shyft are ridesharing companies that have a duopoly in Teslandia. They compete over quantity, which is the number of rides per day. The daily demand for rides in Teslandia is given by Q = 70,000 - 1000p, where p is the price per ride. The marginal cost per ride is the same for both companies at $10. • What is the Cournot equilibrium quantity for Gruber? rides • What is the Cournot equilibrium price? per ride • Assume the firms offer a homogenous product (ride), and suppose instead of competing over quantity they compete over price. What is the Bertrand equilibrium price? per ride • If they could form a cartel and split the profits, what price would they charge? per ride Gruber and Shyft are ridesharing companies that have a duopoly in Teslandia. They compete over quantity, which is the number of rides per day. The daily demand for rides in Teslandia is given by Q = 70,000 - 1000p, where p is the price per ride. The marginal cost per ride is the same for both companies at $10. • What is the Cournot equilibrium quantity for Gruber? rides • What is the Cournot equilibrium price? per ride • Assume the firms offer a homogenous product (ride), and suppose instead of competing over quantity they compete over price. What is the Bertrand equilibrium price? per ride • If they could form a cartel and split the profits, what price would they charge? per ride
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Analyzing the Ridesharing Duopoly in Teslandia Given Demand Q 70000 1000p Marginal cost MC 10 for bo... View the full answer
Related Book For
Managerial economics
ISBN: 978-1118041581
7th edition
Authors: william f. samuelson stephen g. marks
Posted Date:
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