Reference no: EM131157975
The inverse demand curve for widgets is P = 130-2Q. There are two firms, A and B, who produce wid- gets. Each firm has a constant marginal and average cost of producing the good that equals 10. Firms compete in quantities and they make their quantity choices simultaneously (Cournot competition). Firms can choose any quantity to produce.
(a) Plot the best response functions of both firms. In your graph, put qA in the horizontal axis and qB on the vertical axis.
(b) What is the Cournot-Nash equilibrium? You need to solve the system of equation characterized by the two first-order conditions. Show the equilibrium graphically.
(c) Suppose there are three firms (instead of two). Each firm still has constant marginal and average cost equals 10 and they compete in quantities. What is the Cournot-Nash equilibrium in this case? To solve for the NE you need to re-do the first two questions of this problem, now with three firms.
(d) Suppose again that there are only two firms, but now firms have different costs. In particular, firm A has constant marginal and average cost equals 10, whereas firm B has constant marginal and average cost equals 34. What is the Cournot-Nash equilibrium in this case? Note that, as we did in class, when firms have different marginal costs, the only way to solve for the NE is to replace one best-response in the other.
|
Describe several points on the topic of csr including ethics
: Offer your own opinions and expand upon the scenario of being the CEO of a large company. Describe several points on the topic of CSR including ethics
|
|
Write a brief sketch on the women zora neale hurston
: How do the stories about women this week compare to some of the stories about men that we have discussed in the course so far?
|
|
How culture can influence our perception of mental disorders
: From the e-Activity, identify the major advantages and disadvantages of labeling a person with a mental disorder. Next, describe how culture can influence our perceptions of mental disorders. Justify your response.
|
|
Identify a person who you consider to be a successful leader
: Identify a person who you consider to be a successful or effective leader. This could be someone you work with or for (for example: business, professional, sport, volunteer work, religious organisations etc.) or anyone who through some association..
|
|
Inverse demand curve for widgets
: The inverse demand curve for widgets is P = 130-2Q. There are two firms, A and B, who produce wid- gets. Each firm has a constant marginal and average cost of producing the good that equals 10. Firms compete in quantities and they make their quant..
|
|
Calculate the utility-maximizing commission rate for jack
: After graduating from UCR with a stellar degree in economics, Jack is going to work at WorldWideWidgets. He gets to design his own compensation package in terms of the balance of base salary and commission.
|
|
Describe two ways in which a leader could affect groupthink
: Describe two ways in which a leader could affect groupthink. Additionally, give one example of a leader in history that has promoted groupthink. Describe at least one way groupthink could have been avoided in your example.
|
|
Fix the given essay
: Fix the given essay and whatever adding or changing you make just highlight it and make it perfect!- The internet become the biggest box of information......
|
|
Is a company violating the optimality rule
: In offering such training programs, is a company violating the optimality rule? Explain in detail.
|