User Account

All Pages

Profit-maximizing price-quantity combination

Assignment Help Microeconomics
Reference no: EM132542114

Suppose that firms' marginal and average costs are constant and equal to c and that inverse market demand is given by P = a - bQ, where a, b >0.

a. Calculate the profit-maximizing price-quantity combination for a monopolist. Also calculate the monopolist's profit.

b. Calculate the Nash equilibrium quantities for Cournotduopolists, which choose quantities for their identical products simultaneously. Also compute market output, market price, and firm and industry profits.

c. Calculate the Nash equilibrium prices for Bertrand duopolists, which choose prices for their identical products

Reference no: EM132542114

Questions Cloud

Examine the diamond-water paradox : Examine the diamond-water paradox. Why are diamonds more expensive than water?
Economist distinction between the long run : The economist's distinction between the long run and the short run captures the idea that quantities of some factor inputs can be varied in the short run
Determining the cost of providing a cleaning service : Determining the cost of providing a cleaning service to a particular client, which of the following would be classified as a direct cost?
Number of slanderous campaign ads : Jiffy-Pol Consultants is paid $1,000,000 for each percentage of the vote that Senator Sleaze receives in the upcoming election.
Profit-maximizing price-quantity combination : Calculate the profit-maximizing price-quantity combination for a monopolist. Also calculate the monopolist's profit.
Explain between committed and discretionary fixed costs : Explain the difference between committed and discretionary fixed costs. Among the fixed costs of Howarth Company are depreciation and research
Please compare the perfect competition : You can demonstrate with Table or Graph. (such as the features of markets, products, output, price level and efficiency etc.)
What would the new net income be units were sold : Vendmart paid the machine manufac- turer $.11 for each unit sold in excess of the break-even point, what would the new net income be if 45,000 units were sold?
Explain the types of unemployment : With regard to the demand and supply of labor, explain the concept of the equilibrium wage.

Reviews

Write a Review

Microeconomics Questions & Answers

  How might the above ideas be suitable to how society both

it is unfair but true that bad things happen. unfortunately when people expect bad things to happen they often make

  Democratic theory and business ethics

Discuss how the rights of those in the public sector differ from those in the private sector, and how it affects overall public sector productivity.

  What is your rate of return in given question

You buy a property in early 2007 for $350,000. By the end of 2012, when the housing market somewhat recovers, you sell the property for $450,000. During the 7 years that you own the property, it generates a monthly net rental income of $600. What ..

  Inflation or the possibility of increasing inflation

Find TWO articles which discuss the likelihood of continued inflation or the possibility of increasing inflation in the near future 2014-2015.

  How much profit does it make

Why, from an economic point of view, should antitrust action not be taken against all monopolies

  What factors would influence your answer

During 2002, the Federal funds rate remained more than 1% below the rate of inflation. When that happened in 1972 and 1975, the next two business cycle peaks.

  Explain federal reserve goal when conducting monetary policy

The problem is belongs to Economics and it clarify the goals of the Federal Reserve while conducting monetary policy and the importance of those goals have also been discussed.

  Regulatory effect on equilibrium

Consider an electricity market with a daytime (peak-period) inverse demand of P=160-Q, and a nighttime (off-peak) inverse demand P=80-Q, where P is the price of electricity and Q is units of electricity.

  Determine the impact of the companys mission

Determine the impact of the companys mission, vision, and primary stakeholders on its overall success and analyze the five (5) forces of competition to determine how they impact the company.

  Explain the differences between external costs-private cost

Explain the differences between external costs, private costs, and social costs and how the presence of external costs leads to market failure.

  Find a symmetric nash equilibrium among the n firms

Consider only stage 2. Suppose N firms entered this market. Find a symmetric Nash equilibrium among the N firms that entered.

  Write down the three functions of money and why are they

write down the three functions of money and why are they significant? write down the differences between m1 and m2? how

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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