Marginal cost are identical

Assignment Help Microeconomics
Reference no: EM13555937

Consider a Cournot duopoly with the following inverse demand function: P = 100 - 2Q1 -
2Q2. The firms' marginal cost are identical and given by MCi(Qi) = 2Qi. Based on this
information firm 1 and 2's reaction functions are
A. r1(Q2) = 24.5 - 0.5Q1 and r2(Q1) = 24.5 - 0.5Q2.
B. r1(Q2) = 24.5 - 0.5Q2 and r1(Q2) = 24.5 - 0.5Q1.
C. Q1 = 49 - 0.5Q2 and Q2 = 49 - 0.5Q1.
D. Q1 = 49 - 0.25Q2 and Q2 = 49 - 0.25Q1.

Reference no: EM13555937

Questions Cloud

Explain quinine is a component of tonic water : The bitter-tasting compound quinine is a component of tonic water and is used as a protection against malaria. It contains only C, H, N and O. When a sample of mass 0.487 g was burned, 1.321 g of carbon dioxide, 0.325 g of water
Determine what is the cars angular speed : a race car makes two and a half laps around a circular track in 5.1 min. What is the car's angular speed
Calculate what is the effective length of her string : The G string on a violin has a fundamental frequency of 196 Hz. It is 31.0 cm long and has a mass of 0.500 g. what is the effective length of her string
A firm in an oligopolistic industry : A firm in an oligopolistic industry
Marginal cost are identical : Marginal cost are identical
Find out the empirical formula of compounds : Determine the empirical formula of each of the following compounds. Type your answer using the format CH4 for CH4 and list the elements in the same order as they are mentioned in the problem.
Transactions of edwardson corporation : Described certain transactions of Edwardson Corporation. The company uses the periodic inventory system - Make all the journal entries necessary to record the transactions above using appropriate dates.
Describe the economic phenomenon of agglomeration : Describe the economic phenomenon of agglomeration.
Evaluate what is the final temperature of the mixture : a 150g of aluminum at an initial temperature of 100 c is placed in 1.00 kg of water at 20.0c What is the final temperature of the mixture

Reviews

Write a Review

Microeconomics Questions & Answers

  Question about supply and demand curves

In 2005, hogs in the US were selling for $67 each, down from $75 a year ago. This was primarily due to fact that supply had raise during the period to 1.8 million hogs per week.

  Discuss characteristics of the labor markets

Describe and discuss why characteristics of the labor markets should result in the similar wage rate for all jobs requiring the similar level of abilities and skills?

  Government involvement in the marketplace

Discuss and explain one factor of how government involvement in marketplace can impact or not impact the economy. Give a real life example of this factor at work.

  What is the standard deviation of the launch price

The manager of the aerospace division of General Aeronautics has estimated the price it can charge for providing satellite launch services to commercial firms. Her most optimistic estimate (a price not expected to be exceeded more than 10 percent ..

  Monopoly behavior and government intervention

Discuss are a good thing since they transfer resources from lower rated to higher rated activities thereby helping to maximize society's happiness?

  What are the possible harmful effects of oligopoly

What are some of the natural and artificial barriers to entry into oligopolistic industries?

  Draw a graph of the aggregate labor market in equilibrium

Draw a graph of the aggregate labor market in equilibrium. Then consider each of the following scenarios. In each case, show the effect on the market and explain what will happen to the real wage and the equilibrium quantity of labor.

  State whether each of the following events will result in a

state whether each of the following events will result in a movement along the demand curve for mcdonalds big mac

  Describe the meaning of unit travel

Describe the meaning of unit travel

  What occurs to u and y relative to the natural levels

suppose the economy is initially operating at yn. now suppose the fed conducts a monetary contraction where ms

  1 the following is a linear programming formulation of a

1. the following is a linear programming formulation of a labor planning problem. there are four overlapping shifts and

  Describe overhead cost discussion

Assume the following was overheard at the water cooler: "I think our medical device company should take advantage of economies of scale by increasing our output, thereby spreading out our overhead costs."

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