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Q. Assume that two firms compete in quantities (Cournot) in a market in which demand is described by P = 260 - 2Q. Every firm acquires no fixed prices except has a constant marginal cost of 20.
a. What is the one-period Nash equilibrium market price? What is the output and profit of each firm in this equilibrium?
b. What is the output of each firm if they collude to produce the monopoly output? What profit does each firm earn with such collusion?
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Suppose a manufacturer estimates its marginal cost at $1.00 per pack, its own price elasticity at -2, and sets its price at $2.00. The company's settlement obligations are expected to raise its average total cost per pack by about $.60. What effec..
q1. give examples of 7 elements of client value systems time cost quality environment impact resaleexchange self
Jason likes to buy guitars and trumpets. His marginal utility of guitars is given by MUG = (7T0.3)/(10G0.3) and his marginal utility for trumpets is given by MUT = (3G0.7)/(10T0.7), where G is the number of guitars Jason buys and T is the number of t..
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