Solve for cournot equilibrium prices and outputs

Assignment Help Business Economics
Reference no: EM132191778

Two identical firms face linear demand. Market demand is given by P=30-Q. Suppose both firms face zero marginal costs

a) Solve for Cournot equilibrium prices and outputs.

b) Solve for Stakelberg equilibrium prices and outputs.

c) Compare graphically consumer and producer surplus in Cournot and Stakelberg equilibria to perfect competition.

Reference no: EM132191778

Questions Cloud

The performance of the organization : Infer whether the organizational structure is conducive to maximum efficiency and performance of the organization.
Why smes are important for development : Explain what kind of partnership would you implement to promote sustainable economic growth and which goal(s) will impact.
Discuss keynesian transmission mechanism : 5) Discuss Keynesian Transmission Mechanism showing relationship between monetary policy and consequence over GDP change to overcome recession.
Alternative to previous and current debt relief initiatives : As an alternative to previous and current debt relief initiatives, what would you change, add or eliminate? Explain and support your alternative.
Solve for cournot equilibrium prices and outputs : Two identical firms face linear demand. Market demand is given by P=30-Q. Suppose both firms face zero marginal costs
Does digital economy drives foreign direct investment : Does digital economy drives Foreign Direct Investment? Give the examples.
Profit-maximizing levels of output for the two goods : A firm sells two goods (X and Y) that are related in consumption. The estimated inverse demand and cost functions are:
Explain why a high economic growth rate : Explain why a high economic growth rate does not necessarily mean an improvement in economic welfare
Why are stocks considered riskier than bonds : Why are stocks considered riskier than bonds? Be sure to discuss differences in cash flow.

Reviews

Write a Review

Business Economics Questions & Answers

  Differences between production processes

One of the main differences between production processes among different parts of the world has to do with the quality of capital.

  Drip system-new type of infusion pump reduces

Compared with a drip system, a new type of infusion pump reduces the cost of administering chemotherapy from $25 per dose to $20 per dose. The complication rate of each system is 2 percent. Which should you choose? What sort of analysis should you do..

  How big of a grant would make this project worthwhile

The university is seeking a grants to cover capital cost. How big of a grant would make this project worthwhile (to the university)?

  Monopolist faces a demand function

A monopolist faces a demand function x = (1/2)(11-p) where p is the price of the product and x is the quantity demanded. The monopolist has a cost function 3+2x. The government impose a tax of t per unit of output. Assuming that the monopolist maximi..

  Calculate the shutdown price for each firm

Consider a number of firms facing identical total cost function of the form: TC = Q3 -6Q2+10Q. The marginal cost associated with the cost function is:

  About the eminent domain

Discuss the process that must occur in order for government to proclaim eminent domain to assume control over the private property of citizens. How does eminent domain differ from the concept of government zoning?

  What is the cost minimization condition

What is the cost minimization condition?

  Define and describe insolvency risk

Define and describe Insolvency Risk. Describe the two best protections against insolvency at a Financial Institution. Describe a situation where Insolvency Risk could be caused 1) by Liquidity Risk; 2) by Credit Risk

  What are the main features of kinked demand curve

What is industrial economics and outline the salient features of the structure - conduct - Performance (SCP) Model

  Assume the current price of good-equilibrating process

Assume the current price of good X is too high (it is above the equilibrium price). In your own words, describe the equilibrating process that would take place in this market.

  Firm produces output using the production function

Suppose that a firm produces output using the production function Q=0.5L + 1.5K, where L and K represent labor and capital inputs, respectively. Suppose that the cost of L is $10 a unit and the cost of K is $ 25 a unit. What is the optimal bundle of ..

  Decline of union density and income inequality

What are the correlations between the decline of union density and income inequality.

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