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Oligopolistic Competition:
Two rms are competing for consumers. They simultaneously decide what quantity to produce. Suppose they have identical cost c, zero xed cost and face (inverse) market demand p (q1; q2) = 1 - q1 - q2. What are the equilibrium prices, quantities and pro ts?
Two rms are competing for consumers. They simultaneously decide what price to charge. Suppose both rms have zero xed cost, but c1 = 1=2 and c2 = 1=4. The (inverse) market demand is p (q1; q2) = 1 - q1 - q2. What are the equilibrium prices, quantities and pro ts?
Two rms produce di erentiated products and compete in price. The market demand for rm 1's product is q1 (p1; p2) = 100 + p1 - 2p2; and the market demand for rm 2's product is q2 (p1; p2) = 100 + p1 - 2p2: Both rms have zero xed cost, identical marginal cost c = 10: What are the equilibrium prices, quantities and pro ts?
Two rms compete via Stackelberg competition. In period 1, rm 1 names quantity q1. In period 2, rm 2 sees q1 and subsequently chooses quantity q2. Suppose both rms have zero xed cost, identical marginal cost c = 0, and face (inverse) market demandp (q1; q2) = 1 - q1 - q2. What are the equilibrium prices, quantities and pro ts?
Explain short run costs breifly.. In analyzing factor cost in an environment, accountants and economists speak much the same language. This is become, in a competitive market,
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Consider the economy (above) again where the following set of stocks is traded: x 1 =(2,2,0) x 2 =(1,0,3) x 3 =(0,2,4) for the prices (p 1 , p 2 , p 3 )=(1, 1, 1).
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Consider a Bertrand duopoly. The market demand is q=190-p. Consumers only buy from the firm whose price is lower. If two firms charge the similar price, they share the market equal
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