Given an inverse demand function p

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1. Industry Entry
Given an inverse demand function: P = a - bQ; where a = 100, b = 1, and the short-run cost function is C(Q) = eQ + f, where e = 10 and f = 9, if all firms are economically identical:

Q:Solve for the free entry equilibrium number of firms.

2. Stackelberg
Given an inverse demand function: P = a - bQ; where a = 100 and b = 2, and the short-run cost function is C(Q) = eQ + f, where e = 20 and f = 50:

Solve for q*, P*, and profit for both the quantity leader and quantity follower.

Solve for the uniform pricing monopolist's Q*, P* and profit.

3. Bertrand & Product Differentiation
Given a demand function: Q1 = a - bP1 + gP2; where a = 96, b = 2 and g = 1, and the short-run cost function is C(Q) = eQ + f, where e = 12 and f = 400:

Solve for each firms q*, P*, total revenue, total cost and profit.

4. Cournot & Product Differentiation
Given an inverse demand function: P = a - bq1 - gq2; where a = 100, b = 1, and the short-run cost function is C(Q) = eQ + f, where e = 4 and f = 0:

Solve for q*, P*, and profit for each firm when g = 0.5.


Solve for q*, P*, and profit for each firm when g = 1.


Solve for q*, P*, and profit for each firm when g = 0.

Reference no: EM13510339

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