Find prices of two firms choose if they move simultaneosly

Assignment Help Macroeconomics

Reference no: EM13223250

Consider two firms competing in prices and selling a homogeneous product. The market demand curve is p = 100 - q and the constant marginal costs of the two firms are 10 and 20 respectively. Also, suppose all prices should be integer numbers. Find the prices the two firms choose if they move simultaneously.

Reference no: EM13223250

Questions Cloud

Why change is an essential process for businesses : explain why change is an essential process for businesses to be competitive. in what ways must businesses keep changing?

Determine what is the firms current profit : At its current level of production, a profit-maximizing firm in a competitive market receives $12.50 for each unit it produces and faces an average total cost of $10. At the market price of $12.50 per unit, the firm's marginal cost curve crosses t..

Outline the market segments : Explain the role that customer service may have played in the past success of the store using the following terms: brand parity, brand equity, product positioning, perceptual mapping, and product differentiation.

Compare and contrast the ethos of foxconn with the basic : Assess the degree to which companies like Apple might be affected by such ethical relativism in the countries in which their suppliers operate.

Find prices of two firms choose if they move simultaneosly : Consider two firms competing in prices and selling a homogeneous product. The market demand curve is p = 100 - q and the constant marginal costs of the two firms are 10 and 20 respectively. Also, suppose all prices should be integer numbers.

Find the quantities sold by each firm and the market price : Consider a simultaneous move quantity-setting game with two firms facing a demand curve p = 100 - q. Both firms have marginal cost of 20. Suppose one firm maximizes profit and the other maximizes revenue, but both take into account the other firm'..

Find the consumer surplus at the new price : 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.

Find depletion allowance using better method of depletion : A central Appalachia 12,500 Btu, 1.2 SO2 coal has an average price of $60 per ton. A mine having 7 million tons of coal has a first cost of $42 million. The cost of mining is $45 per ton. If, during the first 3 years of operation, the mine yields ..

Explain conversion of benzoyl chloride to benzoic acid : This first-order reaction is 25% complete after 26 s. How much longer would one have to wait in order to obtain 99% conversion of benzoyl chloride to benzoic acid?

User Account

All Pages