What is the profit function of each firm

Assignment Help Business Economics

Reference no: EM131096611

Suppose that inverse demand is given by p(Q) = a-bQ, where Q is total quantity supplied in the market. There are two firms in the market, each with a cost function of c(q) = cq

A) What is the profit function of each firm?

B) Asumming that the firms compete in quantities, solve for the best response functions and the resulting equilibrium levels of quantities

C) Compare the output and price to the competitive case and the monopoly outcome

Reference no: EM131096611

Questions Cloud

An integer literal into a character buffer : You have scanned an integer literal into a character buffer (perhaps yytext). You now want to convert the string representation of the literal into numeric (int) form. However, the string may represent a value too large to be represented in int fo..

In the sequential labor negotiation game : Which of the following will improve your salary bargaining position: In the sequential labor negotiation game:

A final state in the corresponding dfa : Prove that the DFA constructed by MAKEDETERMINISTIC in Section 3.7.2 is equivalent to the original NFA. To do so, you must show that an input string can lead to a final state in the NFA if, and only if, that same string will lead to a final state ..

Treasury bills usually less than federal funds rate : Explain carefully why interest rates on each of the following short-term financial instruments will be closely tied to the level federal funds rate: short-term bank CDs, short-term Treasury bills, short-term commercial paper. Why is the yield on shor..

What is the profit function of each firm : Suppose that inverse demand is given by p(Q) = a-bQ, where Q is total quantity supplied in the market. There are two firms in the market, each with a cost function of c(q) = cq. What is the profit function of each firm? Compare the output and price t..

Reverses the sequence of characters within a string : Let Rev be the operator that reverses the sequence of characters within a string. For example, Rev(abc) = cba. Let R be any regular expression. Rev® is the set of strings denoted by R, with each string reversed. Is Rev(R) a regular set? Why?

Federal reserve policy affect the bond supply equation : The demand curve and supply curve for one-year discount bonds with a face value of $1,000 are represented by the following equations: Bd : Price = -0.6 Quantity + 1140 Bs : Price = Quantity + 700 Suppose that, as a result of monetary policy actions, ..

Long-run supply curve would be perfectly elastic when : All of the following statements apply to a purely competitive market in the long run, except: Which of the following is true of normal profits? The long-run supply curve would be perfectly elastic when: Which of the following statements about a compe..

The regular set defined by e : Assume e is any regular expression. e represents the set of all strings not in the regular set defined by e. Show that e is a regular set. Hint: If e is a regular expression, there is an FA that recognizes the set defined by e. Transform this FA ..

User Account

All Pages