Question: Can someone help me with this please Question 1 (A) Consider an industry with two firms that compete in quantities. Both firm have identical cost

Can someone help me with this please

Question 1 (A) Consider an industry with two firms that compete in quantities. Both firm have identical cost functions given by TC,(q;) =30q; where i=1,2 with constant marginal costs of 30. Market demand is given by P= 120-q1 - 92. so that firm 1's marginal revenue is MR1 = 120-291 -92 and firm 2's marginal revenue is given by MR2 = 120-q1-292. Calculate firm 1's quantity in Nash equilibrium. (B) Instead of competing in quantities, the two firm's decide to collude and form a cartel. Assuming that both firm's stick to the Cartel agreement, calculate how much additional profit each firm makes compared to Cournot competition

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!

Megan Alexander was injuried in an auto accident on December 31, 2019. She has been deemed by medical and vocational experts to be completely disabled from her ability to complete any kind of...

Can some one please help me with this. Consider an industry with two firms that compete in quantities. Both firm have identical cost functions given by TC;(q;) =30q; where i=1,2 with constant...

Consider an industry with two firms, each producing an identical product. Total cost functions for the firms are given by TC 1 =2 q1 and TC 2 =14q 2 . Demand for the product is given by P = 50 - (q 1...

Unigene Labs has existing assets that generate an EPS of $5 per year, which is expected to remain constant if the firm does not invest except to maintain exiting assets. Unigene is all-equity...

its maccro i need detailed answers Exercises Question 1 ("Review of Production and Cost Functions, and Prot Mardoiization} Suppose each worker costs $1130 to hire. An example firm has the following...

QUESTION 16 Consider an industry with two firms that compete in quantities. Both firm have identical cost functions given by TC (q ) =30q . where i=1.2 with constant marginal costs of 30. Market...

Hi. Kindly help me solve these Consider a competitive market in which the market demand is given by P = 1000 - Q , where Q is the market quantity. Currently, there are N identical firms and each of...

pls answer all parts Consider a market served by two firms: firm A and firm B. Demand for the goor is given (in inverse form) by P(Q)=4002.00Q. where Q is total quantity in the market (and is the sum...

1. Suppose all firms in a monopolistically competitive industry were merged into one large firm. Would that new firm produce as many different brands? Would it produce only a single brand? Explain....

solve the following questions in summary please 10 Field Prelim June 2006 6. A regulator is designing a mechanism to maximize the social surplus from consumption of a public good. The mechanism has...

Suppose there are two firms in the market for online conference call software. The firms produce identical products. The market demand for the software is given by Qd=60- 0.5P. The firms have...

Can accounting standards and policy making be neutral? In what sense is neutrality really important?

The university computer lab's director keeps track of the lab usage, as measured by the number of students using the lab. This particular function is very important for budgeting purposes. The...

Assume the market interest rate is 8 % per year and inflation averages 4 % per year. Problem 1 0 . 0 4 2 . b - Annual worth in future dollars If the amounts had been quoted in CV dollars, what is the...

Aadakilerden hangisi uzun vadeli fon kaynaklarndan biridir? A. Ticari Kat B. Datlmam Krlar C. Faktoring D. Para Piyasas Aralar

1. Why are shortages or surpluses more likely with preset prices, such as those on tickets, than flexible prices, such as those on gasoline? LO3.7

5. In 2001 an outbreak of hoof-and-mouth disease in Europe led to the burning of millions of cattle carcasses. What impact do you think this had on the supply of cattle hides, hide prices, the supply...

6. For each stock in the stock market, the number of shares sold daily equals the number of shares purchased. That is, the quantity of each firms shares demanded equals the quantity supplied. So, if...