Question: it is very urgent...please solve as soon as possible Consider two rms with differentiated products, whose demand functions are given by: q1 = a 2p1

it is very urgent...please solve as soon as possible

Consider two rms with differentiated products, whose demand functions are given by: q1 = a 2p1 +132, and q2 = 2 2p2 +191, where q, and p, are their quantities and prices. Their constant marginal costs are given by: Ci = 1 and (:2 = 1. Assume that rm 1's intercept, a, is known only to rm 1. Firm 2 knows that a can be either 1.5, or 2.5, with equal probabilities. The rms compete in prices in a simultaneous move game. (i) Find the equilibrium prices, (ii) explain what happens if private information can be revealed costlessly

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!

Problem 2: Decision Tree, post-pruning and cost complexity parameter using sklearn 0.22 [10 points, Peer Review] We will use a pre-processed natural language dataset in the CSV file "spamdata.csv" to...

Asymmetric information problem of microeconomics Consider two firms with differentiated products, whose demand functions are given by: q1 = 2 - 2p1 + p2, and q2 = 2 - 2p2 + P1, where qi and pi are...

Consider the following Bertrand duopoly model involving two rms producing differentiated products. For simplicity, assume that both rms have no production cost. The demand functions for rm 1's and...

Consider two duopolist with differentiated products, who compete in prices. Their demand and cost functions are given by q 1 = 2 - 2p 1 + p 2 ; q 2 = 2 2p 2 + p 1 , C i = q i , where q i and p i are...

Consider two duopolies with differentiated products, who compete in prices. Their demand and cost functions are given by q 1 = 2 - 2p 1 + p 2 and q 2 = 2 2p 2 + p 1 . Their cost is given by C i = q i...

Consider two duopolists with differentiated products, who compete in prices. Their demand and cost functions are given by q 1 = 2 - 2p 1 , q 2 = 2 2p 2 + p 1 , C i = q i , where q i and p i are their...

For this assignment, you will write a case analysis. You have a choice of using Case 27 in your textbook, 3M - The First 110 Years, or choosing a case from the list below. Then, write a comprehensive...

205 econ the qquestion is complete Exercise 2 (Cournot duopoly with asymmetric firms) In a market characterized by the following (inverse) demand function P = 40 Q two firms compete `a la Cournot....

Chapter 10 Business Process and Information Systems Development \"Jeff, we clean the clubhouse restrooms twice a day . . . in the morning before 7 and again just before lunch. We've been doing that...

Files 12:56 PM Mon May 16 25% Unit+2+workbook Q . . . Home Insert Draw Layout Review View Calibri Bold (Body) 36 B I U aAv A v Unit 2-Supply and Demand Name: HR: LAW OF SUPPLY Use the space below to...

Hi guys, I am trying to properly answer an accounting question concerning shares, bonds, and stock. I was given two annual reports, and am asked to make a decision on one of the companies depending...

The magnitude of vector A is 8 km, and the magnitude of B is 6 km. Which of the following are possible values for the magnitude of A + B? a. 10 km b. 0 km c. 8 km d. 22 km QUESTION 15 A larger net...

When youre a global company that keeps expanding into new countries, how do you keep all of your consumer sites updated in the local languagewithout spending a ton of time and money? PayPal realized...

In one paragraph, describe how the income statement may be used to compare different companies.

Yankee Corporation has suffered a large net operating loss. Which sources of income should be considered when estimating the future realization of a tax benefit from this loss? Briefly describe each....

Donovan Corp., a calendar-year-end company, operates a profitable division in Jurisdiction A. In January 2014, Jurisdiction A enacted a tax law that changed the tax rate structure from 30 percent to...

If Newton Manufacturers has an accounts receivable turnover of 4.8 times and net sales of $7,812,379, what is its receivables?

Accountants at the Tucson firm, Larry Youdelman, CPAs, believed that several traveling executives were submitting unusually high travel vouchers when they returned from business trips. First, they...

Upstate Mechanical, Inc. has been producing two bearings, components T79 and B81, for use in production. Data regarding these two components follow. Variable manufacturing overhead is applied on the...

1. What are three advantages and three disadvantages of virtual teamwork? 2. What is conflict management, and why is it critical in teaming? 3. What are emotional social competencies (ESCs)?

2. In this chapter, the reader should reflect on the following concepts: Idealized system design, analogue thinking, contrast principle, consistency principle, reciprocity principle, scarcity...

2. A Soviet invasion of Poland would lead to the severing of diplomatic relations between the United States and the Soviet Union.

1. Diplomatic relations between the United States and the Soviet Union would be severed in 1993 than that