What is the market price in equilibrium

Assignment Help Business Economics
Reference no: EM132100097

Suppose two firms are engaged in Cournot competition. The firms are identical, produce homogeneous products and have marginal costs = $0 and no fixed cost.

The firms face the following inverse demand curve:

p = 300 - (q1 + q2). The best response functions for the two firms are as follows:

q1 = 150 - 0.5 * q2

q2 = 150 - 0.5 * q1

What is the market price in equilibrium?

Reference no: EM132100097

Questions Cloud

What are typical drive types and attachment methods : Should the data and the database logs be stored on the same drive? Why? What are the examples to support your ideas.
What will the price and quantity be if bramwell wants to : The Bramwell Corporation has estimated its demand function and total cost function to be as follows:
Explain the wide variety of prices for virtually : How do you explain the wide variety of prices for virtually the same service, given that the cost to Hulu of providing each plan is basically the same?
How much deadweight loss is created by my patent : How much deadweight loss is created by my patent and monopoly in this software?
What is the market price in equilibrium : What is the market price in equilibrium?
Give an example of at least one product or service : Give an example of at least one product or service that you have purchased from what you consider to be a perfectly competitive market, a monopolistically
Review what you have learned about business cycles : Review what you have learned about business cycles, GDP, unemployment, CPI, monetary policy, and fiscal policy and respond to the following:
Determine the regression equation : a) Determine the regression equation b) What is the predicted value of y for x equal 5? c) Compute and interpret the coefficient of determination.
Determine the line of best fit for the relationship : The annual bonuses ($1,000s) of six employees with different years of experience were recorded as follows.

Reviews

Write a Review

Business Economics Questions & Answers

  How cultural differences affect businesses

Target is pulling out of Canada! Please watch the following video link to see how cultural differences affect businesses. And what you thoughts?(one paragraph,about 300 words)

  Decent measure for countrys standard of living

How is it that China has the 2nd highest GDP in the world and is in the 90th place on GDP per Capita in the world? Is GDP per capita, a decent measure for a country's standard of living, why or why not?

  Macroeconomic model with imperfect capital mobility

In the IS-LM-FE (Mundell-Fleming) open-economy macroeconomic model with imperfect capital mobility, what does the term 'imperfect capital mobility

  Mutual interdependence among firms in the airline industry

Which of the following best illustrates the mutual interdependence among firms in the airline industry?

  Establishment of the appalachian regional commission

Appalachian governors supported the establishment of the Appalachian Regional Commission (ARC) in the early 1960s. However, some politicians from outside the region felt that issues such as poverty and economic development should be addressed nationa..

  What is the value of marginal cost

A competitive firm's short-run supply curve intersects its average-total-cost curve at the point What is the value of marginal cost at Q = 450?

  Define the two general types of economic systems

The two general types of economic systems that exist today are A. market systems and capitalism. B. laissez-faire systems and pure command systems. C. market systems and command systems. D. socialism and central planning.

  Implementing consistent counter cyclical fiscal policy

What are politicians more likely to prefer: expansionary fiscal policy or contractionary fiscal policy? Does your answer suggest a difficulty for implementing a consistent counter cyclical fiscal policy?

  Considering the purchase of an established business

Suppose you are considering the purchase of an established business that has the expected profit stream noted below. If want a 20% return on you investment, what is the maximum amount you should pay for the property?

  Q 1 continue to read chapter 4 of your text book that deals

q. 1. continue to read chapter 4 of your text book that deals with demand analysis. every assignment ought to answer in

  Building model of the costs of production of electric power

There are at least two different possible approaches to the problem of building a model of the costs of production of electric power. What functional form would you recommend for estimating Model I? Be sure to write out a specific equation. What func..

  Considering the addition of new tax on rms

Suppose the government of Washington is considering the addition of a new tax on rms. You have been called in to provide expert analysis on how such a tax would eect employment of labor. A tax on every hour an employee works (e.g., \X" cents per hour..

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