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1. Two firms make identical scanner units. They are the only producers of these units. The firms are Cournot oligopolists and face the following demand: Demand: Q = 100 - 4P. The firms have the identical cost structures, where c(q) = 4q + 20
a) Compute price, total quantity, quantity per firm, and profit per firm for Cournot.
b) Compute price, total quantity, and profit if there was a single monopoly firm.
c) Compare the profit under Cournot and monopoly. Which market would you rather operate in?
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Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..
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