User Account

All Pages

What is the equilibrium outcome of the game

Assignment Help Operation Management
Reference no: EM133317027

Acme faces the following cost of producing these firetrucks: C(q) = 300 + q. and the following market demand: Q(P) = 75-0.5P. Consider that Acme has a single competitor, Best, which faces the following cost function: C(q) = 100 + 2q.

(a) Acme and Best are Cournot duopolists. Acme is choosing between q={10, 20, 30} and Best is choosing between q={10, 30}. Draw the payoff matrix associated with this game.

(b) Given the scenario in (a), what is Acme's strategy? What is Best's strategy? What is the equilibrium outcome of the game?

(c) Now consider that Acme and Best compete in a Stackelberg game and Acme moves first? Draw the game tree associated with this game.

(d) Given the scenario in (c), what is the equilibrium outcome of the game?

(e) Now consider that Acme and Best are Bertrand duopolists (and all fixed costs are sunk). What is Acme's strategy? What is Best's strategy? What is the equilibrium market price?

(f) Continue to consider that Acme and Best are Bertrand duopolists (and all fixed costs are sunk). How does your answer to (e) change when we move to a sequential-move situation where Acme moves first? Discuss in two sentences or less.

Reference no: EM133317027

Questions Cloud

Different types of marketing campaigns : Different types of marketing campaigns. Campaign tactics that are SMART. Metrics for measuring success. Setting timelines and action plans.
Corporate governance play in business society : What importance does divestitures, restructuring, and corporate governance play in the business society in the 21st century?
What do you know about these touristics plans : I have heard that in the modern shamanistic practice there are groups whose promote and make trips to other cultures, for tourists interested in this ritual.
Treat various cultural population at health care organizaton : Think of a situation in which you must treat various cultural populations at a health care organization.
What is the equilibrium outcome of the game : what is Acme's strategy? What is Best's strategy? What is the equilibrium outcome of the game?
What constitutes positive living and aging in a community : Based on your research, how do I explain what constitutes positive living and aging in a community? How do I assess how people can live and age positively
What are the big five traits : What are the Big Five Traits? What are the opposites of each trait, (e.g. extraversion vs. introversion)? What are some words that might describe
Identify death threats and next steps skill : Identify Death Threats and Next Steps Skill. Create something unique and innovative for a craft beer and wine restaurant in Lubbock,Texas
Explain the differences between environmental and biological : Explain the differences between environmental and biological factors that contribute to emotional or behavioral disorders. Why is it important to understand

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

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