User Account

All Pages

Write the best response function

Assignment Help Macroeconomics
Reference no: EM131168319

Two identical firms each have a cost function TC = 2y2 and the market demand for their output is P = -4Q+192

a)  Write the "best response" function for each firm.

b)  Find the Nash equilibrium in this model  

c) Show that if each firm produces 1 fewer units than the result in (b), both firms make more profit.  Use this information to construct a normal form game.  Explain why this game is a prisoner's dilemma.

Reference no: EM131168319

Questions Cloud

Identify two or three points that really stood out to you : Identify two or three points that really stood out to you in the list. Why did they stand out? What makes them so unique? Were there any points that you previously did NOT consider as part of public speaking? Give us your feedback!
Competitive equilibrium firm quantity : There is currently many firms in a perfectly competitive market.  Each firm has a cost function of the form TC(qf)=3qf^2+5qf+108. The market demand is QD= -10P + 710. a)  Find the long run competitive equilibrium firm quantity, market price and num..
Find the expected income for person : There is a consumer who has a utility function from income U1(W) = W3/4.  This person gets her income from the following uncertain situation:  There is a 80% chance they have an income of $256 and a 20% chance of getting $81. There is a different ..
What kind of listener were you at the concert and why : What kind of listener were you at the concert? Why? What pieces were performed? If there are multiple movements (as described in the "instrumental music" section of the Classical Period), each must be analyzed separately.
Write the best response function : Two identical firms each have a cost function TC = 2y2 and the market demand for their output is P = -4Q+192 a)  Write the "best response" function for each firm. b)  Find the Nash equilibrium in this model
What does melville imply about the business world : Melville: Explain the subtitle of "Bartleby the Scrivener": "A Story of Wall Street"? What does Melville imply about the business world? Would those sentiments still be relevant today? Could the story be written today with a modern-day Bartleby, ..
Statistical decision making and quality control : Explain why a process can be out of control even though all the samples fall within the upper and lower control limits.
What equal annual contribution must it make : What equal annual contribution must it make to this account to accumulate the $10 million by 31 December 2017?
Type of price discrimination : A monopolist has a TC function TC = y2 + 20y. If the demand for the good is P = -8Q + 200. Show using specific numbers that the firm can make a higher profit using some type of price discrimination rather than charging everyone the same price.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd