Find the quantities sold by each firm and the market price

Assignment Help Econometrics

Reference no: EM13223234

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's action while making its decision.

a. Find the quantities sold by each firm and the market price.

b. Who makes higher profit?

c. How would your answers change if each firm had a constant marginal cost of 60 ?

Reference no: EM13223234

Questions Cloud

How to rank strategy pairs by aggregate payoff : In a two-player, one-shot simultaneous-move game each player can choose strategy A or strategy B. If both players choose strategy A, each earns a payoff of $500. If both players choose strategy B, each earns a payoff of $100.

Write an international mini-plan for a company : The choice of where to locate each of the functions that comprise the entire value-added chain, from research to production to after-sales servicing - Write an international mini-plan for a company that interests you

Compute a nominal gdp and a real gdp for each year : MILK- $1, 100 quarts. HONEY- $2 50 quarts. 2009: MILK- $1, 200 quarts. HONEY- $2, 100 quarts. 2010: MILK- $2, 200 quarts. HONEY- $4, 100 quarts. Compute a Nominal GDP and a Real GDP for each year using 2008 as the base year.

Explain what concentration of hydronium ions : In a 0.34 M solution of sodium acetate, what concentration of hydronium ions comes from the self-ionization of water? pKb for acetate anion is 9.246

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'..

Compute the percentage of acetic acid : Calculate the percentage of acetic acid that exists in ionized form when dissolved in water at 0.5 M total concentration.

Find the market price and quantities produced : Consider the same two firms as above with marginal costs 10 and 40, facing a demand p = 100 - q. a. Find the market price and quantities produced if firm 1 moved first, followed by firm 2 b. Find the market price and quantities produced if firm 2 mov..

Explain the gases are both at a pressure : Two ideal gases are in a container but separated by an insulating barrier. The gases are both at a pressure of 2 atm but are at different temperatures and volumes.

User Account

All Pages