Calculate the profit each firm earns in equilibrium

Assignment Help Econometrics

Reference no: EM131051063

The inverse market demand in a homogeneous-product Cournot duopoly is P = 200 - 3(Q1 + Q2) and costs are C1(Q1) = 26Q1 and C2(Q2)= 32Q2

a. Determine the reaction function for each firm.

b. Calculate each firm's equilibrium output.

c. Calculate the equilibrium market price.

d. Calculate the profit each firm earns in equilibrium

Reference no: EM131051063

Questions Cloud

Prepare proposal on how to improve interlude ttdis patronage : Reasearch Methodology- Prepare a research proposal on how to improve Interlude TTDI's patronage and marketing scheme.

Financial statement presentation of receivables : (Financial Statement Presentation of Receivables) Jim Carrie Company shows a balance of $181,140 in the Accounts Receivable account on December 31, 2013. The balance consists of the following.

The variable growth common stock valuation model : The variable growth common stock valuation model. finds the sum of the present value of dividends during the initial growth period and the present value of the price of the stock at the end of the initial growth period.

What is the new unemployment rate : Suppose an economy has 13,800 people employed and 1,200 unemployed but looking for work. a. According to the data, what is the unemployment rate for this economy? Show your work. b. If 1,000 people lose their jobs and immediately begin looking for wo..

Calculate the profit each firm earns in equilibrium : Calculate the profit each firm earns in equilibrium

The interest is reinvested at an annual effective rate : Victor invests 300 into a bank account at the beginning of each year for 20 years. The account pays out interest at the end of every year at an annual effective interest rate of i% . The interest is reinvested at an annual effective rate of (i/2)%. T..

Write a paper about effects of drg on hospital admissions : Write a paper about Effects of DRG on hospital admissions and length of stay.

What are byods and how are they currently being used : What are BYODs and how are they currently being used. You should explore a range of applications of BYOD,for example, in areas such as healthcare, education and other software companies

What is your fixed cost of doing business : What is your fixed cost of doing business

User Account

All Pages