Game between two firms in stackelberg duopoly

Assignment Help Macroeconomics
Reference no: EM1316713

Assume two firms, A and B, serve a market with demand D(p) = 100 - p.  Assume that (i) they have identical cost functions, c(Q) = 5Q, (ii) they compete for market share via quantity competition, and (iii) firm A supplies to the market before B does.  Describe this as a game between the two firms (i.e. Specify the players, the strategies, and the payoffs they receive as a function of their respected strategies).

Reference no: EM1316713

Questions Cloud

How much money do these people make each year : Explain how much money do these people make each year. Suppose you read in your local newspaper that 45 officials in student services whioch is earned as an average.
Determining expected shape of distribution of sample mean : Determine the expected shape of distribution of sample mean? Compute the likelihood of choosing a sample with mean of at least $112,000?
Computation of required return and project irr : Computation of required return and Project IRR and The capital budgeting director of Sparrow Corporation is evaluating a project that costs
Find the cost of the shortest length of carpet : Find the cost of the shortest length of carpet.
Game between two firms in stackelberg duopoly : Assume two firms, A and B, serve a market with demand D(p) = 100 - p.  Assume that (i) they have identical cost functions, c(Q) = 5Q,
Obtaining higher average payoff : Assume the 3 firms compete for market share over an infinite time horizon.  Each firm takes the present value of 1 dollar tomorrow to be X dollars today, where 0
What is the probability that your mean flight : Assume that flight times from SAN to ATL are exponentially distributed with a mean of 4.5 hours and a standard deviation of 0.2 hours. Assume that you must fly from SAN to ATL weekly for the lucrative consulting engagement for one year (52 flight..
Determining percent confidence interval for population mean : Find out a 95 percent confidence interval for population mean.
Sampling distribution of the mean : The 95% confidence interval for the mean of the sampling distribution of the mean is about:

Reviews

Write a Review

Macroeconomics Questions & Answers

  Classifying utility functions as risk averse

Classify the following utility functions as risk averse, risk neutral or risk seeking and draw the relevant diagrams

  Advantages and disadvantages of pollution permits

Suppose that the governmental authorities wished to decrease use of a pesticide that is leaching into groundwater supplies in a watershed by 60% from current use levels.

  Impact of vanishing immigrants on employment level

For an unknown reason, aliens kidnapped all immigrants residing in the US. One morning America wakes up and finds that the only people left in the country are American citizens, while all legal and illegal immigrants are gone.

  Questions on present value and interest rate

What is the present value of $300 to be paid in two years if the interest rate is 12%? What happens to reserves at Third National Bank if one person withdraws $2,000 of cash and another person deposits $750 of cash?

  Computing economic cost

What is your economic cost of buying a ticket? What is your economic cost of attending the game (once you already bought the ticket)?

  Economic statement related to pricing structure

Agree or disagree and describe: In monopolistically competitive market, firms that innovate successfully can increase their economic profits and lock in higher market shares over long run.

  Describe the inefficiency and externalities

Efficiency and sustainability are management goals with respect to renewable resources.  As Field explains, biological and economic considerations are typically blended in determining the efficient allocation of these resources.

  Computing the optimal level of inputs

Find the optimal level of inputs L* and K* that minimize the cost of producing Q0. What is the cost of production associated to L* and K*?

  Graphical representation of long run average supply

There are many factors might change AD and AS, and equilibrium. Please evaluate the effect of following scenario on the AD curve, AS curve, and accordingly the effect on equilibrium price level and equilibrium GDP/output.

  Pricing and output of monopolies

As the manager of monopoly, you face potential government regulation. Findout the monopoly price and output.

  Compute production possibilities curve

Show these data graphically. Upon what specific assumptions is this production possibilities curve based? What would production at a point outside the production possibilities curve indicate? What must occur before the economy can attain such a lev..

  Compute the marginal revenue and price

Prepare a demand schedule for both demand curves and prepare them on an Excel graph. Calculate the marginal revenue for each.

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd