Compete in cournot oligopoly market consisting

Assignment Help Business Economics
Reference no: EM131169598

Suppose you compete in a Cournot oligopoly market consisting of 6 firms. The equilibrium market price and quantity are $5 and 10 units, respectively. The marginal cost for each firm is $3. Based on this information we know the price elasticity of demand is

Reference no: EM131169598

Questions Cloud

Explain how firm long run average cost curve : Carefully explain how a firm’s long run average cost curve is related to the firm’s short run cost curves. (b) Carefully explain the various reasons why economists generally expect the long run average cost curve of a firm to have a U-shape.
Proposal generally has to demonstrate some shortcomings : Since proposals all suggest some kind of change, the author of the proposal generally has to demonstrate some shortcomings with the status quo, that is, a problem to fix or an untapped opportunity to pursue. In your first posting, then, write a compl..
What must be the price elasticity of demand : You are the manager of a theater. At present the theater charges the same admisssion price of $8 to all customers, regardless of age. You propose a two-tier pricing scheme: $5 for children under the age of 12 and $10 for adults. You tell your supervi..
Types of judicial philosophy in how to interpret law : What are some of the different types of judicial philosophy in how to interpret the law? Outline the theories of judicial restraint and judicial activism. What are some of the advantages and disadvantages of each theory? Explain. Lastly, give at leas..
Compete in cournot oligopoly market consisting : Suppose you compete in a Cournot oligopoly market consisting of 6 firms. The equilibrium market price and quantity are $5 and 10 units, respectively. The marginal cost for each firm is $3. Based on this information we know the price elasticity of dem..
The average consumer at firm with market power : The average consumer at a firm with market power has an inverse demand function of P = 10 - Q. The firm's cost function is C = 2Q. If the firm engages in two-part pricing, what is the optimal price to charge a consumer for each unit purchased?
Consider the sequential game : Consider the following sequential game. Firm A must decide whether or not to introduce a new product. Then, Firm B must decide whether or not to clone firm A's product. If firm A introduces and B clones, then firm A earns $1 and B earns $10.
Technological challenges might those companies face and why : Characterize the future of US-based companies desiring to expand overseas within the next 5 years. What political, economic, and technological challenges might those companies face and why? How can they be overcome?
Market system scarce goods : In a market system scarce goods are allocated through the operation of what must be sacrificed in using a resource for its next best use.

Reviews

Write a Review

Business Economics Questions & Answers

  Coefficient in billed consulting hours and project costs

An engineering firm is interested in investigating whether the variability in the cost of small projects (defined as projects under $10 million) can be accounted for, in part, by differences in the number of direct engineering consulting hours billed..

  Fractional relationships between variables are not permitted

Fractional relationships between variables are not permitted in the standard form of a linear program.A cycle is an up and down movement in demand that repeats itself in less than 1 year.

  Manufacturing firm is considering purchase of new machine

A small manufacturing firm is considering the purchase of a new machine. Two types of machines are available on the market. The lives of Machine A and Machine B are four years and six years respectively, but the firm does not expect to need the servi..

  Price discrimination is motivated by the firms desire

If a firm practices first-degree (perfect) price discrimination, it must be TRUE that the firm: Price discrimination is motivated by the firm's desire to:

  What has changed in our working and legal environment

Unions in the United States are at an all-time low and continuing to decline. Why? What has changed in our working and legal environment that has resulted in this situation?

  Monetary policy is having little impact on the economy

Monetary policy is having little impact on the economy today because: the Fed began to lower interest rates more than three and a half years ago, so the impact has worn off. low interest rates have caused an “asset price bubble” in stocks, so money i..

  Maximum points awarded

A project has cash flows of -$12,000 in Year 1, +$5000 in Years 2 and 3, -$2000 in Year 4, and +$6000 in Years 5 and 6. Use an interest rate of 12%. Find the interest rate that gives a net present value of zero.

  What happens to capital per worker and output per worker

What happens to capital per worker and output per worker if machines begin depreciating at a faster rate than they once did? Use a graph to help you discuss your answer. Describe what will happen to growth in the short-run and the long-run

  Attempt to reverse declining global sales

According to The Wall Street Journal, Mitsubishi Motors recently announced a major restructuring plan in an attempt to reverse declining global sales. Suppose that as part of the restructuring plan Mitsubishi conducts an analysis of how labor and cap..

  Borrower with project that has rate of return

Suppose that you are a borrower with a project that has a rate of return of 6.8%. You submit a bid to borrow $1,000 at an interest rate of 5%, and a lender accepts your offer. After you fund your project and pay back your loan, what is your gain or l..

  Discuss your understanding of what policy analysis contains

“Policy analysis is finding out what governments do, why they do it, and what difference, if any, it makes”  Discuss your understanding of what policy analysis contains and what policy makers can learn from policy analysis. Provide at least two examp..

  What will be point also arc elasticity for the condition

If the market is made up of 100 individuals with demand curves identical to Mr. Smith's, Illustrate what will be the point also arc elasticity for the conditions specified in parts a also b

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd