User Account

All Pages

What is the cournot equilibrium market price

Assignment Help Microeconomics
Reference no: EM133273870

The market demand curve in a soap production industry is given by Q = 600 - 3P, where Q is the quantity demanded per month and P is the market price in Rands. Alpha and Thandi are two firms in this industry, and they have identical constant marginal cost of R80 per unit.

1) Find the Cournot equilibrium quantities for each firm. What is the Cournot equilibrium market price?

2) Suppose that Alpha is the Stackelberg leader, find the Stackelberg equilibrium quantities for each firm and price?

3) Using the answers in (a) and (b) calculate and compare the profit of each firm under the Cournot and Stackelberg equilibria.

Reference no: EM133273870

Questions Cloud

Examination and analysis of the specific issues : MGMT 330 Minnesota State University, Mankato essay regarding causes of GM's failure to introduce the lessons learnt from the NUMMI venture across
What will you have saved for retirement : What will you have saved for retirement by the time you retire? What will you need to live in retirement without income from employment
What is the capital-skill complementarity hypothesis : Compare the traditional cash grant (demo-grant) to the Earned Income Tax Credit Program (EITC). How are they implemented? What is the impact on work incentives?
How many compressors should vac order before summer : BUAD 311 University of Southern California How many compressors should VAC order before summer - what are the expected profits of VAC, of the supplier
What is the cournot equilibrium market price : The market demand curve in a soap production industry is given by Q = 600 - 3P, where Q is the quantity demanded per month and P is the market price in Rands.
Why does the instrument predict the number of slaves : What instrument does he use to causally identify the effects? Why does the instrument predict the number of slaves taken from each country?
What was the average price markup on drugs : 1, What was the average price markup on drugs sold by secondary distributors?
How are you willing to advise your company on the expensive : How are you willing to advise your company on the expensive process of coming up with treatment options?
Explain the free market philosophy : Are we really operating in a free market structure with respect to the financial crisis of 2008, given the privileges the governments bestowed on the banking sy

Reviews

Write a Review

Microeconomics Questions & Answers

  Determine the loss gain or recapture of MACRS depreciation

One of its competitors agreed to buy the machine for $110,000. Determine the loss, gain, or recapture of MACRS depreciation on the sale

  Find the current ratio and acid-test ratio

Turbo Start has current assets totaling $1.5 million (this includes $500,000 in current inventory) and current liabilities totaling $50,000.

  Simply state the short run shut down rule as stated in the

Simply state the short run shut down rule as stated in the book and apply it using the numbers given.  Be sure to show your work to support the decision you outline in your report. uses 50,000 workers to produce 200,000 units of output per day. The d..

  Hamburgers is measured along the horizontal axis

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..

  What would you need to sell your product

MKTG 330 University of St Thomas what would you need to sell your product for (lowest price) to break even after 2 years?

  Ralph opened a small shop selling bags of trail mix

In the long run, will the price of trail mix rise or fall? How do you know? What will the price of trail mix be in the long run?

  Identify the purpose of antitrust legislation

Explain why the private sector is reluctant to produce public goods.

  What career will debbie pursue if the discount rate is given

Suppose that musical conservatories raise their tuition, so that it now costs Debbie $60,000 to become a concert pianist. What career will Debbie pursue.

  What are the visible and invisible control systems

What are the visible and invisible control systems. Identify an area of conflict and explain how to resolve it(specify which style you would use and why).

  Marginal product of labor equation is an important equation

The Value of the Marginal Product of Labor Equation is an important equation.

  What are the major areas of influence when planning for an

what are the major areas of influence when planning for an integrated marketing communication imc program? list the

  How much will you have in your account on first october

Suppose that on January 1 you deposit $100 in an account that pays a nominal interest rate of 11.33463%, with interest added daily. How much will you have in your account on October 1, or 9 months later?

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