Assuming the industry is a cournot duopoly

Assignment Help Business Economics

Reference no: EM1315003

Q. Assume Firm K developed a high energy sports drink also decides to bottle also sell it. The market demand curve is linear also is given as follows:

P = 30 - Q

The marginal cost to produce this drink is $3.

a) Illustrate what price would this new drink sell for if it sold in a competitive market?

b) Illustrate what is the monopoly price of this new drink?

c) Illustrate what will be the price of this new drink in the long run, assuming the industry is a Cournot duopoly?

Reference no: EM1315003

Questions Cloud

Computation of wacc for a firm : Computation of WACC for a firm and based on the information provided, calculate the weighted average cost of capital (WACC)

Questions based on stocks and debts : Multiple choice questions on stocks and debts - Which of the following statements is CORRECT?

How far to the right of where the string : 50 g ball travelling at 25.0 m/s is bounced off a brick wall and rebounds at 22.0m/s. A high-speed camera records this event. If the ball is in contact with the wall for 3.51 ms, what is the average acceleration of the ball throughout this time inter..

Transferring of t-lymphocytes in graft versus host disease : Transfer of the immunologically competent T-lymphocytes from a donor into host expression different MHC antigens can have severe consequences, causing a fatal syndrome known as graft versus host disease (GVH).

Assuming the industry is a cournot duopoly : Illustrate what will be the price of this new drink in the long run, assuming the industry is a Cournot duopoly.

Describing whether smoking is confounder : A case-control study of relationship between liver cirrhosis among both non alcoholics and alcoholics. Describe whether smoking is confounder.

Claiming using chi-square test : A student team examined parked cars in four different suburban shopping malls. One hundred vehicles were examined in each location. Research question: At α = . 05, does vehicle type vary by mall location?

What is the mass of the ball : A 71 kg skier encounters a dip in the snow's surface that has a circular cross section with a radius of curvature of 12 m. If the skier's speed at point A is 7.0m/s , what is the normal force exerted by the snow on the skier at point B? Ignore fricti..

What is the relationship between marginal revenue : Illustrate what is the relationship between marginal revenue also marginal cost as the firm increases output?

User Account

All Pages