What is the nash-cournot eqilibrium

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Q1. Derive the profit maximizing supply for a monopoly suppling demand in the following industry.

D: P = 87 -8 *Q MC = 2

Q2. What is the operating profit for this firm?

Q3. What is the Nash-Cournot Eqilibrium for 2 identical firms? (Give the total Q, i.e., the combination of both firms' output.)

Q4. What is the opperating profit for both firms.

Q5. Now assume that firm #1 has a MC which is half that of firm #2. Firm #2's MC is just as it was above. Calculate the Stackleberg Equilibrium for both the leader firm (#1) and the follower firm (#2).

Q6. Now calculate the operating profits of each firm.

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This is a numerical assignment on oligopoly of managerial economics. The demand function and the marginal cost is given.We need to calculate monopoly , Cournot duopoly and stackelberg output. All works are shown in excel.

Reference no: EM132059764

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Reviews

inf2059764

9/12/2018 1:14:16 AM

You can take any one from there. Like take any one demand function and take it to snap so they can't change. Like work on the function form P = 96 - 6Q and MC = 7. Like I am telling take any one and work on it. Do not follow for changing value. Work on my given function. Thanks Experts Mind for providing me the exact solution and without plagiarism...

inf2059764

8/8/2018 2:13:02 AM

You can take any one from there. Like take any one demand function and take it to snap so they can't change. Like work on the function form P = 96 - 6Q and MC = 7. Like I am telling take any one and work on it. Do not follow for changing value. Work on my given function. in Q1 please provide the Profit Max Quantity for Perfect competitive firm P=MC. But this firm is monopoly. The profit Max condition will be MR = MC. Then the firm Equilibrium Quantity will be find out. In Q2 please divided the Profit Max Q by 2. How can it possible ! Where you get this formula. The profit Max condition formula is TR - TC or (P - MC)*Q

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