Find the symmetric nash equilibrium

Assignment Help Business Economics
Reference no: EM131074940

Consider a market that consists of n ≥ 2 identical firms. Each firm produces output at a constant average and marginal cost of 2. The market demand curve in this industry p = 20 – 2Q, where Q is market demand and p is price. Firms will choose output simultaneously.

(a) Find the symmetric Nash equilibrium.

(b) Show that as n becomes large the market output in this industry will approach the level of output under perfect competition.

Reference no: EM131074940

Questions Cloud

Price elasticity of demand for vacationers : As the price of tickets rises from $200 to $250, the price elasticity of demand for business travelers is , and the price elasticity of demand for vacationers is using the midpoint method. Therefore, the demand for airline tickets at this price range..
Describe a primary decision maker : Describe a primary decision maker in example of  target segment: who they are, what they like, how they make buying decisions. Describe the primary problem(s) your organization, product or service will help them solve.
Time-frame at hand is sufficient for inputs to be variable : If the time-frame at hand is sufficient for all inputs to be variable (adjustable), then the firm is
Rights of both business owners and of employees : Do you agree with the outcome of theHobby Lobbycase? Discuss what rights if any were given to businesses by the Supreme Court in Hobby LobbyandCitizens United. Explain how these two decisions may affect the rights of both business owners and of emplo..
Find the symmetric nash equilibrium : Consider a market that consists of n ≥ 2 identical firms. Each firm produces output at a constant average and marginal cost of 2. The market demand curve in this industry p = 20 – 2Q, where Q is market demand and p is price. Firms will choose output ..
Explain hypothesis for combating illegal immigration to u.s. : Research the Argosy University online library resources to examine the issues of illegal immigration in the United States and cite and document the sources you find to establish your researched facts. Ensure you provide enough content to thoroughl..
Market consists of two population segments : A market consists of two population segments, A and B. An individual in segment A has demand for your product q = 50 – p. An individual in segment B has demand for your product q = 120 – 2p. Segment A has 1000 people in it. Segment B has 1200 people ..
Swirl of conflicting cross-currents : The U.S. government's expansive role in public policy iscaught in a swirl of conflicting cross-currents. On the one hand, popularexpectations about government's responsibility to solve problems often exceedthe capacity of state and local authoriti..
Drawing on current business publications : Drawing on current business publications and using the opening case of the chapter as a guide, discuss how the slow economic recovery in 2011 and 2012 has affected the current strategies of firms other than those mention in the case.

Reviews

Write a Review

Business Economics Questions & Answers

  The central bank do to keep the peso cost of the dollar

Illustrate what must the central bank do to keep the peso cost of the dollar equal to Peso 3.4425 subsequent the speculators activities.

  Q1 assume the price elasticity of demand for heating oil is

q1. assume the price elasticity of demand for heating oil is 0.7 in the long run also 0.2 in the short run. if price

  When using balance sheet items to calculate ratios

You are the assistant to the CEO of a major company. Your CEO keeps an eye on the competition, and asks you to do the following. Using ratio analysis, compare two major competitors in the same industry. One of your two companies can be the same compa..

  Other factors that influenced the growth of social media

Identify and discuss some of the other factors that influenced the growth of social media. To get you started and pointed in the right direction, consider how the use of digital cameras, digital video cameras, cell phones with cameras, and portable d..

  Suppose james has utility over wealth

Suppose James has utility over wealth given by u(w) = w 1 2 . Putting utility on the y-axis and wealth on the x-axis, use a graph to show why James would rather have $100 for sure instead of a gamble where he gets $20 20% of the time and $120 the res..

  Interest of finding the best customer possible

Explain how you are going to make this decision. If you hire a real estate agent, will the agent be willing to work in your interest of finding the best customer possible? Design two ways in which you can motivate the real estate agent to act in your..

  Analyze a situation in which both parties entering

Please respond to the following: From the e- Activity, propose a methodology for assessing the risk in business contracts. Assess the economic impact this methodology may have for the organization.

  Illustrate what is expected interest rate that will charge

Illustrate what is expected interest rate that will be charged by a bank that cannot exactly distinguish between two types but knows probabilities of each type.

  What will the hourly cost be to run this machine

The machine will be operating 2,500 hours per year with annual maintenance and operating costs of $6,000. Using an interest rate of 15%, what will the hourly cost be to run this machine?

  Assume the value of equilibrium real gdp

Assume the value of equilibrium real GDP is $800 billion dollars. Assume the government increased spending by $20 billion dollars to increase real GDP.

  What is the value today of a security

What is the value today of a security that promises to pay $1,000 in one quarter, with payments increasing at 1% per quarter thereafter? Payments are made each quarter forever. Our opportunity cost of capital is 12% per annum.

  Wealth is held as currency or checking accounts

If your wealth is held as currency or checking accounts, or other assets that you can convert to money on the short notice, your assets are considered to be?

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