Find quantity produced by each firm in a cournot equilibriu

Reference no: EM13185807

Suppose two firms 1 and 2 compete in quantities and face a demand curve p = 100 - q. Suppose firm 1 has a constant marginal cost of 10 while firm 2 has a constant marginal cost of 40. Suppose they produce quantities simultaneously.

a. Find quantity produced by each firm in a Cournot equilibrium.

b. Find the market price and the consumer surplus. Suppose the firms merge, and form a single new firm that will operate at a constant marginal cost of 10.

c. Find the price charged by this new, single firm.

d. Find the consumer surplus at this new price. Is it higher or lower than above?

Reference no: EM13185807

Questions Cloud

Where is the diver in relation to the surface : After diving 92 m below the sea level, a diver rises at a rate of 4 meters per minute for 7 min. Where is the diver in relation to the surface? Can't get the concept? 28 is the sume and 68 is the answer?

Find out the mole fraction of each component : A solution is made by mixing equal masses of methanol, CH4O, and ethanol, C2H6O. Determine the mole fraction of each component to at least three significant figures.

How old is gar5y and how old is his sister : Gary's age is an even number less than 14. He is one-half his sister's age. His sister's age is a number between 16 and 24. how old is Gar5y and how old is his sister?

Contract for kris to lay sod in joy's yard : Joy and Kris enter into a contract for Kris to lay sod in Joy's yard for which she agrees to pay Kris. When Kris's schedule conflicts, she contacts Leza, to whom Kris "assigns all rights under the contract."

Find quantity produced by each firm in a cournot equilibriu : Suppose two firms 1 and 2 compete in quantities and face a demand curve p = 100 - q. Suppose firm 1 has a constant marginal cost of 10 while firm 2 has a constant marginal cost of 40. Suppose they produce quantities simultaneously. a. Find q..

How much work is required to pump : A circular swimming pool has a diameter of 20 m, the sides are 3 m high, and the depth of the water is 2.5 m. How much work (in Joules) is required to pump all of the water over the side? (The acceleration due to gravity is 9.8 m/s^2 and the densi..

State concentration of an organic pollutant in a lake water : The concentration of an organic pollutant in a lake water sample was found to be 32 ppb. Based on this information, 600.00 kg of the lake

Explain why you believe it is a function or not : In Calculus: Explain the difference between a function and a relation in your own words. Consider the equation x2 + y2 = 5 and explain why you believe it's a function or not? Give at least two reasons to support your answer.

State the eu standards added to the groundwater : The Eu(III) standards added to the groundwater sample contained 0.181 ng/mL (ppb) of Eu(III). Calculate the concentration of Eu(III) in the groundwater sample.

User Account

All Pages