Question: 17. There are two rms 7; E {A, B} in a market with differentiated goods. They choose prices simultaneously. After prices are set, demand for

17. There are two rms 7; E {A, B} in a market with differentiated goods. They choose prices simultaneously. After prices are set, demand for each rm is given by (1.; = 90 1191- 1104 where 2' = A, B and p_.; represents the price of the other rm. The 2 4 Y produce enough to meet the required demand, paying a total cost c.- (qi) = 15 + 206122 What is the equilibrium price for both rms? a) $54 = 80,193 = 100 b) m = 80,103 = 80 (c) m = 160. p3 = 80 (d) m = 160. p3 = 160 ( ( (e) None of the above Options

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Game Theory Homework Problem Set 2 Dr Ilja Neustadt 1 Homework Problem Set 2 to be solved for submission by the 17th of October Question 1. (Modied Driving Conventions Game)1 Consider the following...

acc On January 1st. 2017, X Company bought 80% of the outstanding common shares of the Y Company for $140,000 cash. On that date Y Company had $50,000 of common shares outstanding and $60,000...

1. (Limit Pricing) Consider the following two-period model with two rms: incumbent (I) and entrant (E). These two rms produce differentiated products and compete in prices. The incumbent rm Operates...

Problem 1: Monopolis'tic Competition. Two companies 1,? are monopolistic competitors: demand for each rm's product is a function of prices of both rms: 91(P11P2}=a5P1 +0519: (1} QEQDL'PZJ = G 5392 +...

In this question you will compare the Stackleberg and Cournot outcomes. Initially suppose rm 1 is the leader and rm 2 the follower. Suppose the rms have the following cost functions c 1 ( y 1 ) = y 2...

Market A is a duopoly where two firms (A and A) sell homogeneous products and compete by choosing their prices simultaneously in each period (Bertrand competition). The inverse demand in market A is...

Firms. ( a ) ( 1 0 ) There are two rms , both of whom face demand curve QD ( P ) = 1 0 P: Firm 1 s cost function is C 1 ( q ) = q 2 , and rm 2 s is C 2 ( q ) = 2 q 2 . Find the NE price, assuming...

This is International Business and Trade subject. Please help me answer the following (briefly and concisely): 1. Differentiate Vertical and Horizontal Foreign Direct Exchange Decisions. 2. What do...

1. The main goal of macroeconomic is to: A. analyze current macroeconomic data. B. predict how the macroeconomy will perform in the future. C. make general statements about how the economy works. D....

4 Files 12:47 PM Mon May 16 Insert Draw Layout Review View Unit 3Microec0nomics Name: ELASTICITY Use the space below to take notes during class. Elastic: Unit Elastic: Inelastic: Perfect...

A causal and stable LTI system S has its input x[n] and output y[n] related by the linear constant-coefficient difference equation, Let the impulse response of S be the sequence h[n]. (a) Show that...

The balance sheets for Federer Sports Apparel for 2025 and 2024 are presented below. 2. Prepare a horizontal analysis for 2025 using 2024 as the base year. (Note: If the percentage increase or...

When using videos, you should do all of the following except which one? Question 12 options: Determine your relationship as a trainer with the video - the video the actual trainer, or are you? Use...

A production process is known to produce a particular item in such a way that 5 percent of these are defective. If two items are randomly selected as they come off the production line, what is the...

QUESTION 5 Give the group name for the following elements (small caps, not plural: ex. alkaline earth metal): krypton

Let D = {(x, y)|x2 + y2 1} be the unit disk with density function (x, y) = 2x 2 + 2y 2 + 3. Find the center of mass (x, y) using the formula: -* plx, y) dA y== plx.y) dA.

Explain one type of diversity that is experienced in the workplace, and discuss the challenges that managers have in handling that specific type of diversity. Try to research different examples and...

Identify three companies (at least 1 Aviation company) that are known for being socially responsible. List and compare the types of socially responsible behavior that each company engages in. How did...

which one is NOT a purchasing activity -providing suppliers with performance feedback -evaluating supplier performance -paying suppliers -identifying new suppliers

10. What activities in your life best express the value you want others to associate with you?

7. Also complete the following sentence: This core value is important to me when I ________________________. This is the situation this core value is important to you we are looking for here.

9. What type of competence is important to have and develop in order to strengthen the core value you want others to associate with you?