How much profit does each firm make

Assignment Help Econometrics
Reference no: EM131251241

Consider a market in which the market demand curve is given by P = 18 - X - Y, where X is Firm 1's output, and Y is Firm 2's output. Firm 1 has a marginal cost of 3, while Firm 2 has a marginal cost of 6.

a) Find the Cournot equilibrium outputs in this market. How much profit does each firm make?

b) Find the Stackelberg equilibrium in which Firm 1 acts as the leader. How much profit does each firm make?

 

Reference no: EM131251241

Questions Cloud

Find the supply function of the fringe : If Apple operates as the dominant firm facing competition from the fringe in this market, now what is its optimal output? How many units will fringe providers sell? What is the market price, and how much profit does Apple earn?
What is the profit of each firm : What is the Stackelberg equilibrium, when Firm 1 acts as the leader? What is the market price at the Stackelberg equilibrium? What is the profit of each firm?
Discuss the financial statement presentation and disclosures : Discuss the financial statement presentation and disclosures associated with consolidations related to Off balance sheet transactions, Variable-Interest Entities, and Noncontrolling Interest.
What is the stackelberg equilibrium price : Assuming that Firm 1 is the Stackelberg leader, find the Stackelberg equilibrium quantities for each firm. What is the Stackelberg equilibrium price?
How much profit does each firm make : Consider a market in which the market demand curve is given by P = 18 - X - Y, where X is Firm 1's output, and Y is Firm 2's output. Firm 1 has a marginal cost of 3, while Firm 2 has a marginal cost of 6.
The return on employee investment : An ongoing discussion among business managers is the return on employee investment (ROEI). Employers want to maximize business profitability, and employees are a significant part of organizational success. An example of this issue faces Uber. What ar..
Explain how advances in technology affect digital forensics : Analyze the impact of technological changes on digital forensics techniques. Explain how advances in technology affect digital forensics. Examine changing methods for extracting evidence from a new technology.
List all of the forms of compensation : List all of the forms of compensation you receive from your job at a school district?
Discuss sourcing : Discuss sourcing. How do companies select the right bids?

Reviews

Write a Review

Econometrics Questions & Answers

  Can this policy be consistent with profit-maximization

A New Hampshire resort offers year-round activities: in winter, skiing and other cold-weather activities; and in summer, golf, tennis, and hiking

  Who is likely to be the better bargainer

Pete and Lisa are entering into a bargaining situation in which Pete stands to gain up to $5,000 and Lisa stands to gain up to $1,000, provided they reach agreement. Who is likely to be the better bargainer?

  Compute the value of the equilibrium real rate of interest

Yo=1200 Y=C+I+G C=130+.5(Y-T) I=(-400)-(10R) G=150 T=50 1. Compute private savings 2. Compute public savings 3. Compute the value of the equilibrium real rate of interest (R) 4. Suppose G rises from 150 to 200. What is new R?

  Determine evidence of stockholders'' equity transaction

is not always the case because small clients do not typically use a transfer agent. Besides, a transfer agent's job ordinarily has to do with transfers of outstanding stock. Answer

  Calculate the velocity of mushroom kingdom

Assume the following about Mushroom Kingdom: there are 16869 gold coins in circulation, nominal GDP is 86722 gold coins, the Central Bank of Mushroom Kingdom increases the number of gold coins in circulation by 2.4% each year, and GDP increases by..

  The answer to each question should be a short to long

the answer to each question should be a short to long paragraph.1 how does an expansionary monetary policy work?

  Discuss the likely effects on labor force participation

Assume that a state government currently provides no child care subsidies to working single parents, but it now wants to adopt a plan that will encourage labor force participation among single parents. Suppose child care costs are hourly.

  What is the firms short-run supply curve

What is the short-run marginal cost curve b) What is the equation for average variable cost c) What is the minimum level of average variable cost d) What is the firm's short-run supply curve

  Find the demand function and the price function

The maximum possible demand for a certain commodity is 20,000 tons. The highest price for which there is any demand is $40 per ton. If the demand equation is linear, find the demand function and the price function.

  Gross domestic product effect on computer hardware industry

Make an in depth analysis on how your prediction of indicators Gross Domestic Product, Producer Price Index and Retail Sales or PC Retail Sales will effect the Dynamic Random Access Memory industry.

  Explain the change in political philosophy

How do you explain the change in political philosophy between the Hoover and the Roosevelt administrations? Does it suggest that economic policies reflect political pressures as much as economic ideas? Or does it show that without new ideas, polic..

  Will a consumer ever purchase exactly eight bottles of wine

A common marketing tactic among many liquor stores is to offer their clientele quantity (or volume) discounts. For instance, the second-leading brand of wine exported from Chile sells in the United States $8 per bottle if the consumer purchases up..

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