Determine the equilibrium level of output in the market

Assignment Help Business Economics

Reference no: EM131387210

Consider a Bertrand oligopoly consisting of four firms that produce an identical product at a marginal cost of $180. The inverse market demand for this product is P = 1000 -2Q.

a. Determine the equilibrium level of output in the market.

b. Determine the equilibrium market price.

c. Determine the profits of each firm.

Reference no: EM131387210

Questions Cloud

Free market price does not cause deadweight loss : Draw a supply and demand curve combination where the imposition of a maximum price that is below the free market price does not cause a deadweight loss. Explain in detail why there is no deadweight loss in your example.

Human beings are self-interested : The phrase in the text, 'human beings are self-interested, not selfish' means that:

The category compensation of employees : The category “compensation of employees” doesn't capture the full income of labor because:

Write a summary for ikeas globalization : Write a summary page for the presentation. Executive Summary It should be well presented with good content and should cover all the topics in the presentation

Determine the equilibrium level of output in the market : Consider a Bertrand oligopoly consisting of four firms that produce an identical product at a marginal cost of $180. The inverse market demand for this product is P = 1000 -2Q. Determine the equilibrium level of output in the market. Determine the eq..

Increase the rent on rent-controlled/ stabilized apartments : Assume that Mayor DeBlasio has decided to increase the rent on rent-controlled/ stabilized apartments as a way to increase the number of apartments available for rent in New York City. Do you expect the elasticity of supply to influence the success o..

Health care cost rises because of government policy : Which of the following helps in determining wether health care cost rises because of government policy, or because of demand rising faster than supply? If minimum wage is set below the equlibrium wage, it leads to a labor surplus. Economists assume t..

What are the values of private saving-public saving : Assume that GDP (Y) is 3,000. Consumption (C) is given by the equation C = 1,200 + 0.3(Y – T) – 100 r, where r is the real interest rate. Investment (I) is given by the equation I = 1,500 – 50r. Taxes (T) are 2,000 and there is no government spending..

Housing and less food in order to maximize her utility : Carolyn is given a bundle of housing and food that is on her budget constraint. What has to be true about the price of housing and the price of food relative to the MRSFH in order for it to be the case that Carolyn needs to buy more housing and less ..

User Account

All Pages