Competition in both retail and wholesale markets

Assignment Help Business Economics
Reference no: EM133124958

(Competition in Both Retail and Wholesale Markets)

Suppose there are two manufacturer in the wholesale market engaging in the Cournot competition (production competition as we learned in Chap 4), with both marginal costs at 60, MCM1= MCM2= 60, and no fixed cost. There are two retailers engaging in the Bertrand competition in the retail market (pricing competition as we learned in Chap 4&5), with the retail demand equation: p=180-q.

The manufacturers first simultaneously choose their production levels, q1 and q2, and then after observing the consequent wholesale price w, the retailers simultaneously choose their retail prices, p1 and p2. And they all work separately from each other.

Find the consumer surplus at the equilibrium.

Reference no: EM133124958

Questions Cloud

Share of income worsen the great recession : How did debt as a solution to labor's falling share of income worsen the Great Recession?
Determine the amount of net profit for the year : Determine the amount of net profit for year December 31, 2021 if at beginning of the year, gift certificate payable of XYZ has a beginning balance of P85,000
Negative binomial model : I. True/False/Uncertain - Briefly explain. No credit without an explanation:
Explain the uniform distribution : Two players compete in a first-price sealed bid auction. Each player's valuation is vi = (1/3) + ?i, where ?i is known only to player i, but is drawn from a uni
Competition in both retail and wholesale markets : Suppose there are two manufacturer in the wholesale market engaging in the Cournot competition (production competition as we learned in Chap 4), with both margi
How the recent macroeconomic policy change : Critically review how the recent macroeconomic policy change (interest rate and rate) has affected your particular enterprise or business unit of your choice? Y
Briefly explanation of impact on travel industries : Briefly explanation of impact on travel industries in Australia during the covid 19 pandemic.
Determine for great book company the dollar amount : Use this information to determine for Great Book Company the dollar amount of its maintenance costs that are to be absorbed by the printing department
Conduct ratio analysis on the company annual report : Develop a background of the company and an overview of the company's corporate governance principles and conduct ratio analysis on the company annual report

Reviews

Write a Review

Business Economics Questions & Answers

  Advertising campaign to highlight that pork is safe

Consider an economy where many farmers rear pigs to earn a living. Recently there is an outbreak of pig virus and consumers are concerned

  Explain the globalization controversy

Is sustainable business and economic development the answer to the globalization controversy?

  Find the standardized scores associated

Find the standardized scores associated with the thresholds between different categories.

  Find out his utility maximizing h and l

Find out his utility maximizing H and L. Assume he is not eligible for welfare. Now assume he is eligible for welfare. Does he take welfare or work.

  Difference-in-difference estimator of effect of job earnings

Suppose that between 2003 and 2007, one group of individuals (Group 1) received job training while another otherwise similar group (Group 2) did not. Suppose that the average earnings of the first group went from $40,000 per year to $55,000 per year,..

  Consumer purchase as a function

How much of commodity 1 (x1) and commodity 2 (x2) will the consumer purchase as a function of p1, p2, and m?

  Determine the ways your company is dealing

Determine the ways your company is dealing with the moral hazard problem and suggest best practices used in the industry to deal with it. (southwest Airlines)

  Addressing the concepts of misogi and tsumi

Explain the purpose of personal and collective purification in Shinto, addressing the concepts of misogi and tsumi.

  What is the different between tourist and excursionist

Define tourism. What should be included in the definition of tourism? What is the different between tourist and excursionist?

  What are the expected one year interest rates next year

Suppose that the yield curve shows that the one year bond yield is 3 percent, the two year bond is 4 percent, and the three year yield is 5 percent. What are the expected one year interest rates next year and the following year? If the risk premiums ..

  How to derive the is curve

How to derive the IS curve? What is the determinants of its slope and its position.

  Firm discounts the cash flows of the project

The estimated beta of this project is 1.50. If the firm discounts the cash flows of the project at the WACC, they run the risk of

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