Each firm selects discrete quantity 0 1 2 or 3 present game

Assignment Help Mathematics

Reference no: EM13470779

Two identical firms have: MC = $1 and face a market demand function of: P = 6 - Q.

Thus, total quantity, Q = q1 + q2, the sum of what each firm produces, and profit (payoff) per firm (same for both), (pi)1 = (P - MC)xq1 = [(6 - Q) - 1]xq1 = [5 - (q1 + q2)]=q1

a) Cournot Duopoly: Each firm chooses a discrete quantity: 0, 1, 2, or 3. Present the game in matrix form, and find its pure strategy Nash equilibria. Are there any dominant or dominated strategies for either player?

b) Bertrand Duopoly: Each firm can choose any price. What is/are the Nash equilibrium/a?

Reference no: EM13470779

Questions Cloud

Your discussion should include the topics you are : discuss the common contracts that you and your teammates have encountered in your personal and professional lives. your

There are several theories that explain why juveniles : there are several theories that explain why juveniles become delinquent. some of the sociological theories include

Of 84 adults selected randomly from one town 62 have health : of 84 adults selected randomly from one town 62 have health insurance. find a 90 confidence interval for the true

Find a news article online reporting an officer whose use : find a news article online reporting an officer whose use of force has been called into question as to whether the

Each firm selects discrete quantity 0 1 2 or 3 present game : two identical firms have mc 1 and face a market demand function of p 6 - q.thus total quantity q q1 q2 the sum of

Your review should discuss how the sox act may affect : locate an article specifically related to the sarbanes-oxley act sox act of 2002.write a 350- to 700-word review of the

Compare and contrast common law contracts and the ucc : compare and contrast common law contracts and the ucc article 2 with your team. your discussion should include the

What first amendment rights do police officers have in the : what first amendment rights do police officers have in the government workplace?what are different types of

Using lirn or the internet find a recent article on some : using lirn or the internet find a recent article on some type of law enforcement misconduct issue in the united

User Account

All Pages