User Account

All Pages

Find the nash equilibrium price, output per firm

Assignment Help Econometrics
Reference no: EM13966386

Koak and Pepsee are the only producers of soft drinks: TCk = 100 + 5q & TCp=100+10q The market demand for soft drinks is: Q = 1000 - 10P.

a) If the firms behave as Cournot competitors, find the Nash equilibrium price, output per firm, and profit per firm.

b) If the firms behave as Stackelberg competitors, with Koak the leader, find the Nash equilibrium price, output per firm, and profit per firm.

c) If the firms collude to maximize their combined profit, find the price, output per firm, and profit per firm assuming they split the profits evenly.

Reference no: EM13966386

Questions Cloud

Define virtual business and enterprise : Define Virtual Business/Enterprise. Identify a virtual business and provide thoughts concerning the benefits, strengths, and weaknesses of this arrangement.
Compute b for the test conducted : a. Assuming that s1 = 1.2 and s2 = 1.1, test the relevant hypotheses using a = .001. b. Compute b for the test conducted in part (a) when m1 - m2 = 6.
Portfolio management and strategic planning : Early morning, Monday 29th August 2005. John Smith, head of portfolio management and strategic planning, was paging through the slides he had prepared for the Portfolio Management Board (PMB) meeting which would start at 9 am, and which was scheduled..
Who might suffer in the short term if you go along with your : Who might suffer in the short term if you go along with your supervisor's request? What might happen in the future if you go along with her request this time? If you do not go along, who might suffer in the short term and what could be the long-term ..
Find the nash equilibrium price, output per firm : If the firms collude to maximize their combined profit, find the price, output per firm, and profit per firm assuming they split the profits evenly.
Use tukey''s test as the post hoc test for anovas : Use Tukey's test as the post hoc test for ANOVAs in this course. Be sure to check this box when you run analyses. For letters a-d, instead of identifying these values on your output, as the text states, please write them into your Word file as writte..
What are the four basic functions provided by retailers : Distinguish among these terms: logistics, value delivery chain, and traditional inventory management. Why are these terms important?  What is a channel of distribution? What are the pros and cons of an direct channel of distribution? When should a fi..
What is the distribution of z : What is the distribution of z - Create confidence intervals for each of the two variables you are trying to predict as well - Find the mean returns and the variances using the summarize or tabstat command.
Construct a relative frequency histogram : In a study of warp breakage during the weaving of fabric (Technometrics, 1982: 63), 100 specimens of yarn were tested. The number of cycles of strain to breakage was determined for each yarn specimen, resulting in the following data:

Reviews

Write a Review

Econometrics Questions & Answers

  How would hours change in response to overtime pay in a case

Let's evaluate the expected impact of the introduction of overtime pay on hours of work. Consider three cases. First suppose that before the overtime pay is started the optimal choice of hours is 5 hours per week.

  Determine what is his quarterly payment

Bill Mitselfik borrowed $10,000 to be repaid in quarterly installments over the next five years.The interest rate he is being charged is 12% per year compounded quarterly. What is his quarterly payment

  What data will you use in your empirical work

What data will you use in your empirical work? What is the source of your data? Why is this particular data set appropriate for the study

  What are the profit maximizing levels of price and output

Customers to Live Theaters, Inc. can be divided into two groups: seniors and everyone else. The inverse demand curves for each of the two groups are given below. The marginal cost (which equals the average variable cost) of serving

  How much should an airline charge students for a ticket

During spring break, students have an elasticity of demand for a trip to Florida of -3. How much should an airline charge students for a ticket if the price it charges the general public is $360 Assume the general public has an elasticity of -2.

  What are firms atc per unit at these three levels of product

A firm in a purely competitive industry is currently producing 1000 units per day at a total cost of $450. If the firm produced 800 units per day at a total cost would be $300 and if it produced 500 units per day, its total cost would be $275. Wha..

  What value would you predict for s

The forecasting staff for the Prizer Corporation has developed a model to predict sales of its air-cushioned ride snowmobiles. The model specifies that the S vary jointly with disposable personal income Y and the population between ages 15 and 40,..

  When the same efforts must be made to uncork

Most restaurant customers tip according to a percentage rule between 15 and 25 percent of the bill. Diners who have dinner and a $20 bottle of wine usually pay the same percentage of the bottle price as diners who order a $100 bottle.

  What is the long-run cost and long-run average to produce

What is the long-run cost and long-run average to produce 120 units 180 units 240 units are there economies the output range 120 to 180 are there diseconomies between 180 and 240 Q L K 120 4 20 180 6 ..

  Determine the reaction function for each firm

Determine the reaction function for each firm. Firm 1: Q1 = - Q2, Firm 2: Q2 = - Q1 b. Calculate each firm's equilibrium output. c. Calculate the equilibrium market price. d. Calculate the profit each firm earns in equilibrium.

  What must she expect to happen to short term interest rate

Assume that an investor is risk-neutral (i.e. assume that the investor always chooses the investment with the higher expected rate of return even if it is riskier). If the yield on 1-year marketable CD's is 6% while the yield on 2-year marketable ..

  Show that the preferred relation is transitive for mac

Mac Rowe doesn't sweat the petty stuff. In fact, he just cannot detect small differences. He consumes two goods, x and y. He prefers the bundle (x,y) to the bundle (x',y') if and only if (xy - x'y' > 1) . Otherwise he is indifferent between the tw..

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: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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