Market to sell a homogeneous product

Reference no: EM13688734

Two firms compete in a market to sell a homogeneous product with inverse demand function P = 600 - 3Q. Each firm produces at a constant marginal cost of $300 and has no fixed costs. Use this information to compare the output levels and profits in settings characterized by Cournot, Stackelberg, Bertrand, and collusive behavior.

Reference no: EM13688734

Questions Cloud

The money demand curve will shift to the right : The money demand curve will shift to the right if there is

Coupon bond-calculate your annual holding period return : Suppose you purchase a 3-year, 5-percent coupon bond at par and hold it for two years. During that time, the interest rate falls to 4%. Calculate your annual holding period return. Assume that the coupon bond has a face value of $100.

Please explain why marginal cost-average variable cost : Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..

Market to sell a homogeneous product : Two firms compete in a market to sell a homogeneous product with inverse demand function P = 600 - 3Q. Each firm produces at a constant marginal cost of $300 and has no fixed costs.

Macroeconomic forecasters predict : Suppose that macroeconomic forecasters predict that the economy will be expanding in the near future. How might managers use this information?

Should the club cover explicit and implicit costs : Should the club cover explicit and implicit costs? Imagine that you are asked to consult with a drama club that puts on a play every year. The club asks you: How much should we charge for tickets if we want to cover our costs?

What would be his optimal allocation : Let Tom’s utility function be U(C,L) = ??! + 3×??! . If Tom has 10 hours to split between work and leisure and his wage rate is $5 per hour, what would be his optimal allocation?

Proposed tax based on loss of surplus to market participants : Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..

User Account

All Pages