User Account

All Pages

Compute the nash equilibrium and compare

Assignment Help Microeconomics
Reference no: EM13244672

Suppose there are two goods. The demand for good 1 is q1=a-bp1+ep2and the demand for good two is q2=a-bp2+ep1.

a and b are strictly positive, |e|<b

(1)Compute the optimal prices, and the Lerner index and inverseelasticity of demand for each good.

(2)Now suppose the goods are produced by two firms that chooseprices simultaneously. Compute the Nash equilibrium

Reference no: EM13244672

Questions Cloud

Societies of fertile crescent region : Describe one political charactertic of hebrew that emerged in societies of Fertile crescent region (up to 500 B.C.E) ?
What was redbeards mean whisker length : The data for the cats, you realize that if you now include data from one more cat, Redbeard, the mean whisker length of the cats becomes 10.514 cm. What was Redbeard's mean whisker length?
Explain what is the percent ionization of benzoic acid : What is the percent ionization of a 0.060 M solution of benzoic acid ( a monoprotic acid with Ka= 6.5 * 10^-5)
What was the impact of the communist victory : what was the impact of the communist victory in china on american foreign policy in the 1950s and how did it change the cold war
Compute the nash equilibrium and compare : (1)Compute the optimal prices, and the Lerner index and inverseelasticity of demand for each good. (2)Now suppose the goods are produced by two firms that chooseprices simultaneously. Compute the Nash equilibrium and compare
Explain what is the structural formula of the product : What is the structural formula of the product in the following alkene addition reaction; CH3-CH=CH2+H2O and H2SO4
How many liters of the gas was produced from sodium metal : a gas is produced. At 25°C and 1.00 atm of pressure, how many liters of this gas was produced from 3.45 g of sodium metal
Impact the sources of the arab-israeli conflict : what was the outcome of the six day war in 1967 and how did it impact the sources of the Arab-Israeli conflict
Determine the effect of the change in govt purchases : According to the spending allocation model, adecrease in government spending results in, among other things, anincrease in investment in the long run. Suppose the capitalstock is $1 trillion and a fall in government spending causes a $50billion ri..

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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