Question: COURNOT QUANTITY PLEASE SHOW ALL YOUR WORK STEP BY STEP IN IN HOW YOU GOT YOUR ANSWER!! Question #1: Consider a Cournot duopoly, the firms
COURNOT QUANTITY
PLEASE SHOW ALL YOUR WORK STEP BY STEP IN IN HOW YOU GOT YOUR ANSWER!!
Question #1: Consider a Cournot duopoly, the firms face an (inverse) demand function: Pb = 111 - 3 Qb.
The marginal cost for firm 1 is given by mc1 = 6 Q.
The marginal cost for firm 2 is given by mc2 = 6 Q.
What quantity will of output will the duopoly produce ?
(Assume Firm 1 has a fixed cost of $64 and Firm 2 has a fixed cost of $103)
Question #2: Consider a Cournot duopoly, the firms face an (inverse) demand function: Pb = 111 - 3 Qb.
The marginal cost for firm 1 is given by mc1 = 6 Q.
The marginal cost for firm 2 is given by mc2 = 6 Q.
(Assume Firm 1 has a fixed cost of $64 and Firm 2 has a fixed cost of $103)
What price will prevail in the duopoly equilibrium ?
Question #3: Consider a Cournot duopoly, the firms face an (inverse) demand function: Pb = 111 - 3 Qb.
The marginal cost for firm 1 is given by mc1 = 6 Q.
The marginal cost for firm 2 is given by mc2 = 6 Q.
(Assume Firm 1 has a fixed cost of $64 and Firm 2 has a fixed cost of $103)
What quantity will firm 1 produce in the duopoly equilibrium ?
Question #4: Consider a Cournot duopoly, the firms face an (inverse) demand function: Pb = 111 - 3 Qb.
The marginal cost for firm 1 is given by mc1 = 6 Q.
The marginal cost for firm 2 is given by mc2 = 6 Q.
(Assume Firm 1 has a fixed cost of $64 and Firm 2 has a fixed cost of $103)
What quantity will firm 2 produce in the duopoly equilibrium ?
Question #5: Consider a Cournot duopoly, the firms face an (inverse) demand function: Pb = 111 - 3 Qb.
The marginal cost for firm 1 is given by mc1 = 6 Q.
The marginal cost for firm 2 is given by mc2 = 6 Q.
(Assume Firm 1 has a fixed cost of $64 and Firm 2 has a fixed cost of $103)
How much profit will firm 2 earn in the duopoly equilibrium ?
Question #6: Consider a Cournot duopoly, the firms face an (inverse) demand function: Pb = 111 - 3 Qb.
The marginal cost for firm 1 is given by mc1 = 6 Q.
The marginal cost for firm 2 is given by mc2 = 6 Q.
(Assume Firm 1 has a fixed cost of $64 and Firm 2 has a fixed cost of $103)
What is level of total surplus in the duopoly equilibrium ?
Question #7: Consider a Cournot duopoly, the firms face an (inverse) demand function: Pb = 111 - 3 Qb.
The marginal cost for firm 1 is given by mc1 = 6 Q.
The marginal cost for firm 2 is given by mc2 = 6 Q.
(Assume Firm 1 has a fixed cost of $64 and Firm 2 has a fixed cost of $103)
How much DWL does the duopoly cause ?
Question #8: Consider a Leader-Follower duopoly, the firms face an (inverse) demand function: Pb = 111 - 3 Qb.
The marginal cost for firm 1 (The Leader) is given by mc1 = 6 Q.
The marginal cost for firm 2 (The Follower) is given by mc2 = 6 Q.
(Assume Firm 1 has a fixed cost of $64 and Firm 2 has a fixed cost of $103)
What is the total industry output ?
Question #9: Consider a Leader-Follower duopoly, the firms face an (inverse) demand function: Pb = 111 - 3 Qb.
The marginal cost for firm 1 (The Leader) is given by mc1 = 6 Q.
The marginal cost for firm 2 (The Follower) is given by mc2 = 6 Q.
(Assume Firm 1 has a fixed cost of $64 and Firm 2 has a fixed cost of $103)
What price will prevail in the market ?
Question #10: Consider a Leader-Follower duopoly, the firms face an (inverse) demand function: Pb = 111 - 3 Qb.
The marginal cost for firm 1 (The Leader) is given by mc1 = 6 Q.
The marginal cost for firm 2 (The Follower) is given by mc2 = 6 Q.
(Assume Firm 1 has a fixed cost of $64 and Firm 2 has a fixed cost of $103)
How much of the total industry output is produced by firm 1 ?
Question #11: Consider a Leader-Follower duopoly, the firms face an (inverse) demand function: Pb = 111 - 3 Qb.
The marginal cost for firm 1 (The Leader) is given by mc1 = 6 Q.
The marginal cost for firm 2 (The Follower) is given by mc2 = 6 Q.
(Assume Firm 1 has a fixed cost of $64 and Firm 2 has a fixed cost of $103)
What are the profits of firm 2 ?
Question #12: Consider a Leader-Follower duopoly, the firms face an (inverse) demand function: Pb = 111 - 3 Qb.
The marginal cost for firm 1 (The Leader) is given by mc1 = 6 Q.
The marginal cost for firm 2 (The Follower) is given by mc2 = 6 Q.
(Assume Firm 1 has a fixed cost of $64 and Firm 2 has a fixed cost of $103)
How much consumer surplus is created by industry transactions ?
Question #13: Consider a Leader-Follower duopoly, the firms face an (inverse) demand function: Pb = 111 - 3 Qb.
The marginal cost for firm 1 (The Leader) is given by mc1 = 6 Q.
The marginal cost for firm 2 (The Follower) is given by mc2 = 6 Q.
(Assume Firm 1 has a fixed cost of $64 and Firm 2 has a fixed cost of $103)
How much DWL is created by the Leader-Follower industry structure ?
Question #14: Consider a Leader-Follower duopoly, the firms face an (inverse) demand function: Pb = 111 - 3 Qb.
The marginal cost for firm 1 (The Leader) is given by mc1 = 6 Q.
The marginal cost for firm 2 (The Follower) is given by mc2 = 6 Q.
(Assume Firm 1 has a fixed cost of $64 and Firm 2 has a fixed cost of $103)
How much total surplus is created by the Leader-Follower industry structure ?
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