What are each firm profits

Assignment Help Microeconomics

Reference no: EM13902436

Suppose that two competing firms, A and B, produce a homogeneous good. Both firms have a marginal cost of MC = $50. Describe what would happen to output andQ = QE + QD

a. Unable to recognize the potential for collusion, the two firms act as short-run perfect competitors. What are the equilibrium values of QE, QD, and P? What are each firm's profits?

b. Top management in both firms is replaced. Each new manager independently recognizes the oli- gopolistic nature of the light bulb industry and plays Cournot. What are the equilibrium values of QE, QD, and P? What are each firm's profits?

c. Suppose the Everglow manager guesses correctly that Dimlit is playing Cournot, so Everglow plays Stackelberg. What are the equilibrium values of QE, Q , and P? What are each firm's profits?

Reference no: EM13902436

Questions Cloud

What is the primary objective of ibm advertising : What is the primary objective of IBM's advertising? How have the objectives of its advertising changed over the years

Find the dominant firm demand curve : Suppose there continue to be five fringe firms but that each manages to reduce its marginal cost to MC = 20 + 2q. How does this change your results?

Define the two concepts of segmentation and targeting : Segmentation and targeting principles are often mistaken as being the same in marketing. For this discussion: Requirements: at least 470 words and APA references. Define the two concepts of segmentation and targeting

Does the existence of an uncaused cause point to divinity : Does the existence of an uncaused cause point to divinity? Provide reasons and examples to support your response

What are each firm profits : Unable to recognize the potential for collusion, the two firms act as short-run perfect competitors. What are the equilibrium values of QE, QD, and P? What are each firm's profits?

Create fast growth through the establishment of market : Now, in the light of the evident failure of socialism, many of these countries seek to create fast growth through the establishment of "market economies

Calculate the net present value of these expected receipts : The receipts for ZXY’s proposed Project A are estimated to be $6,000 in the first year; $4,500 in the second, and $1,500 in the third. calculate the net present value (NPV) of these expected receipts for Project A, and given that forgoing Project A w..

Explore a major tendency of romanticism : Each set of poems allows you to explore a major tendency of Romanticism, whether: (I) political and social protest; (II) celebration of visionary reality and the ability of poetry to escape the real; and (III) reflection on the superiority of vis..

Find the optimal order quantity-what is the reorder point : An office supply store open 5 days a week must determine the best inventory policy for boxes of copier paper. Weekly demand is nearly constant at 250 boxes and when orders are placed, then entire shipment arrives at once. The cost per box is $22 and ..

User Account

All Pages