Find the nash equilibrium of cournot game

Assignment Help Econometrics

Reference no: EM13717385

1/ (Cournot's duopoly game with linear inverse demand and a fixed cost)

Find the Nash equilibrium of Cournot's game when there are 2 firms, the inverse demand function is given by equation

P(Q) = a - Q if Q < a ; P(Q) = 0 if Q > a

The cost function of each firm i is given by Ci(qi) = 0 if qi = 0 ; Ci(qi) = f + c.qi if qi > 0 , where c > 0, f > 0, and c < a. (Note that the fixed cost f affects only the firm's decision of whether to operate; it does not affect the output a firm wishes to produce if it wishes to operate.)

Reference no: EM13717385

Questions Cloud

Determine the diameter of the largest voids : The atomic radius of iron is 0.129 nm and it has a bcc unit cell at room temperature and an fcc unit cell at high temperature. One of the largest void is located at (1/2,1/4,0) in the bcc unit cell, and at (0,1/2,0). Determine the diameter of the lar..

Force to contend with both domestically and globally : McDonald's is a force to contend with both domestically and globally. The company has been a success story world-wide because of its focus on marketing details and because it plans globally yet acts locally.Choose a doughnut/cinnamon bun/bread..

How much work does the tension force do on magnus : Magnus has reached the finals of a strength competition. In the first round, he has to pull a city bus as far as he can. how much work does the tension force do on Magnus

What distance must the bricklayer compress spring initially : An ingenious bricklayer builds a device for shooting bricks up to the top of the wall where he is working. what distance must the bricklayer compress the spring initially

Find the nash equilibrium of cournot game : Find the Nash equilibrium of Cournot's game when there are 2 firms, the inverse demand function is given by equation P(Q) = a - Q if Q a

Find its altitude above the earth surface : Communications satellites are used to bounce radio waves from the earth's surface to send messages around the curvature of the earth. find its altitude above the earth's surface

Piston-cylinder device with set of stops initially : A piston-cylinder device with a set of stops initially contains 0.6 kg of steam at 1.0 MPa and 400 C. The location of the stops corresponds to 40 percent of the initial volume. Now the steam is cooled. Determine the compression work if the final stat..

Estimate what is the orbital speed of the second satellite : A satellite is in a circular orbit around an unknown planet. The satellite has a speed of 1.80 x 104 m/s, and the radius of the orbit is 5.30 x 106 m. What is the orbital speed of the second satellite

Find the temperature of air and its initial volume : 1750g of air performs an expansion work of 3100kJ on the surrounding as it expands horizontally to a pressure of 63000 kPa and a volume of 0.065 cubic meters. Find the temperature of air and its initial volume

User Account

All Pages