Qtwo firms face a demand equation given by p200000 -6q1q2

Assignment Help Business Economics

Reference no: EM13354852

Q. Two firms face a demand equation given by: P=200,000 -6(q1+q2) where q1 and q2 are the outputs of the two firms. The total cost equations for the two firms are given by: TC1=8000q1 and TC2=8000q2

(A) If each of the firms sets its own output rate to maximize its profits, assuming that the other firm holds its rate of output constant, solve for the optimal output of each firm (q1* and q2*), the optimal price (P*), and the profit of each firm.

(B) If the firms collude, what will be the monopoly price (optimal price P*), total output of the two firms (Q= q1 + q2), and the total profits of the two firms?

Reference no: EM13354852

Questions Cloud

Q 1 hawk-dove two animals are fighting over some prey each : q. 1 hawk-dove two animals are fighting over some prey. each can choose one of two stances passive or aggressive. each

Qsuppose the inverse demand function for an industry is p : q. suppose the inverse demand function for an industry is p 9 - q20. the cost function for the industry is c 10 10q

Q1 people sometimes talk about lsquotwin deficit where the : q1. people sometimes talk about lsquotwin deficit where the twins are the current account and the government budget

Qthe private marginal cost is mcp 80 q while the marginal : q.the private marginal cost is mcp 80 q while the marginal harm to the rest of society from gunk is suppose the

Qtwo firms face a demand equation given by p200000 -6q1q2 : q.two firms face a demand equation given by p200000 -6q1q2 where q1 and q2 are the outputs of the two firms. the total

Qsuppose that a person regards ham and cheese as pure : q.suppose that a person regards ham and cheese as pure complements- he or she will always use a slice of ham in

Q1if the inverse demand function toaster is p60-q what is : q1.if the inverse demand function toaster is p60-q what is the consumer surplus if price is 30?q2. statistically

Q1 assume that a very competitive start-up enters the : q1. assume that a very competitive start-up enters the market in direct competition with the oligopoly you described in

Qas weve been discussing and identifying the issues that : q.as weve been discussing and identifying the issues that our local and global communities currently face how do you

User Account

All Pages