Reference no: EM13723687
Consider a market with two goods, each of which is an imperfect substitute for the other. The inverse demand function (Price as a function of quantity) for each firm is given by (as a function of the quantity by the two firms)
P1(q1,q2)=30-2q1-q2 Firm1
P2(q1,q2)=30-q1-2q2 Firm 2.
Both firms can produce as much as they want, but must make quantity decisions simultaneously. Both firms have a marginal cost of 0.
Using the same techniques that we covered for solving Cournot competition with homogenous goods, determine the best response function for each player, as a function of the quantity produced by the other.
b) Given this, solve for the equilibrium quantity by each player, the market price for each player's good, and the profits made by each player.
c) If the firms had undifferentiated products, the market demand function would be the following:
P(Q) = 30 - 2Q
The equilibrium quantity is for each firm to sell 5 units. How does this compare with your answer in part (b)? Explain why firms find it profitable to change their quantities in this way.
|
Create a strong thesis for your essay
: Create a strong thesis for your essay. A thesis states your main idea in a sentence. A sample thesis might be: The concepts of the mestiza consciousness, borderlands, and cross-culture challenges influence the writings of Latino writers.
|
|
Role of community and public health
: Question 1: Describe the role of community and public health in the well-being of populations. Question 2: Describe the public health organizational structure.
|
|
Strategic skills analysis for selection
: Find an article through ProQuest that discusses Strategic Skills Analysis for Selection and Development. Discuss the relationships among KSAs (knowledge, skills, and abilities), job analysis, organizational strategy, and HR activities.
|
|
Assignment on market segmentation strategy
: What role, if any, does the Internet play in market segmentation strategy. Provide at least one specific example and briefly discuss.
|
|
Solve for the equilibrium quantity by each player
: How does this compare with your answer in part and explain why firms find it profitable to change their quantities in this way.
|
|
Importance of managing pay equity
: Address the importance of managing pay equity (both internal and external) and the consequences for not doing so.
|
|
Enhance ethics and business performance
: Question 1: Analyze the components of two of these models and how they can be used to enhance ethics and business performance.
|
|
Define management information systems can benefit a company
: Name five examples of marketing decisions that may require policies. Briefly describe one such policy.
|
|
Identify two specific aspects of the athenian acropolis
: Identify two specific aspects of the Athenian Acropolis and its Parthenon, and explain their significance to ancient Greek culture and the western heritage in the arts.
|