User Account

All Pages

Consider the cournot oligopoly

Assignment Help Business Economics
Reference no: EM132134229

Consider the following Cournot oligopoly:

  • There are two identical firms in the industry, which set their quantities produced simultaneously.
  • The two firms face a market demand curve, Q = 120 - P, in which Q = q1 + q2.
  • Each firm's cost function is ci(qi) = qi2.
  • Each firm acts to maximize its own profit.

A) Write down each firm's profit function.

B) From the profit functions, derive a best response rule for each player.

C) From the best response rules, find the Nash Equilibrium in this market.

Reference no: EM132134229

Questions Cloud

Explain process of assessing hazards and risks : Explain process (evaluation and analytical) of assessing hazards and risks and why such processes are applied towards proactive and predictive safety program
What is the theory of consumer choice : What is the theory of consumer choice and how it consumers facing trade-offs make decisions and how they respond to changes in their environment?
Is branson a transformational leader or transactional leader : What is the difference between leadership and management? Is Branson a leader? A manager? Both? Neither? Explain your reasoning.
Ten principles of economics : What does the term the Ten Principles of Economics and how it's applied to the consumer buying trends?
Consider the cournot oligopoly : There are two identical firms in the industry, which set their quantities produced simultaneously. The two firms face a market demand curve, Q = 120 - P, in whi
What is the total setup plus holding cost for wheel-rite : What is the maximum number of wheel bearings that will be in inventory at Wheel-Rite? What is the total setup plus holding cost for Wheel-Rite?
Calculate and enter either the interest rate : Suppose a bond with no expiration date has a face value of $10,000 and annually pays a fixed amount of interest of $900.
What is the monetary multiplier : a. If the required reserve ratio is 2.50 percent, what is the monetary multiplier?
Statements is not true about an excise tax : 1. Which of the following statements is not true about an excise tax?

Reviews

Write a Review

Business Economics Questions & Answers

  What are the equilibrium quantity and price

Suppose demand and supply are given by Qd = 60 - P and Qs = 1.0P - 10. a. What are the equilibrium quantity and price in this market?

  Find the annual after-tax rate of return

Find the annual after-tax rate of return of this investment. Assume a 35% tax rate applies. Contributed by D. P. Loucks, Cornell University

  Two brokers at morgan stanley

Two brokers at Morgan Stanley: Bob and Simon are comparing their performance last year. Bob averaged a 19% rate of return on his portfolio, while Simon averaged a 16% rate of return. The beta for Bob’s portfolio is 1.5 while the beta for Simon’s port..

  Impact on the equilibrium price and quantity

(1) Use demand and supply analysis to illustrate the impact on the equilibrium price and quantity in the corn market of the following.

  Influences the well-being of bystander

Melissa engages in an activity that influences the well-being of a bystander. In order for Melissa's activity to give rise to an externality, it must be the case that

  Smoking and deposits the money monthly

How much could he save by age 65 if he stops smoking and deposits the money monthly in a savings account?

  Implied value of total factor productivity

Suppose India has a per capita GDP that is .074 times the United States GDP. It has a capital-per-person ratio that is .035 times that of the United States. Compared to the United States, the implied value of total factor productivity for India is..

  Standard time for manual material-handling work cycle

The standard time for a manual material-handling work cycle is 3.26 min per piece. The PFD allowance factor used to set the standard was 16%. During a particular 8-hour shift of interest, it is known that the worker lost a total of 32 min due to pers..

  Describe the harrod-domar growth model

Describe the Harrod-Domar growth model, and explain precisely how the model illustrates dynamic instability. Why is it often called the knife’s edge model? Another question lurks behind nearly all discussions of macroeconomic policy: Why should we be..

  Congressional control of the fed and monetary policy

Ron Paul (and his son, for that matter) has advocated for congressional control of the Fed and monetary policy for years. One of the pillars of his argument holds that elected officials should be in charge of monetary policy, not appointed individ..

  What price would the monopolist charge in each market

A monopolist is selling the same product in two different markets, the West Coast and the East Coast. The demand for the product is larger in the West Coast: Demand in the East Coast: P =10 - Q Demand in the West Coast: P = 20 - Q. What price would t..

  Explain how premium business models work

Explain how premium business models work. Make sure to include the mathematical equations we used in the Dropbox case study to describe the economics of this type of offering (calculating how many paid customers are needed to support free customers).

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