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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?
The managing director of Christine plc, a company which specialises in acquiring small businesses, has considered the following potential investments. Only one of these investments
I am given that demand formula P=150-3Q, am told I only have 40 tickets to sell and that the MC=0 and I am suppose to figured out how many tickets to sell to maximize total welfare
QUESTION (a) Explain the law of demand and the factors affecting demand. (b) Explain and illustrate how demand of a commodity will change if there is a tax on that product.
Ask quWhich one of the following is TRUE? a. Small changes in the annual growth rate amount to a measurable difference in the long-term growth trend of a country. b. For ev
You are evaluating two (mutually exclusive) methods of strip-mining a resource-rich area. The alternatives are very similar, though one important difference is in the scale of the
Explain about the long-run economic growth. Long-Run Economic Growth: Secular or long-run growth is the continued upward trend into aggregate output per person over many
negative externalities
QUESTION (a) In several countries recently, many people have become unemployed. Analyse the different types of unemployment in an economy. (b) Define inflation and explain i
1. A firm has segmented its market into the following demand functions: P1 = 500 – 50Q P2 = 500 – 20Q with a cost function: MC=AC =20 a. Determine the prof
Markets are often classified in terms of the nature of competition and collaboration they facilitate. In economic analysis, if the elements of competitions are “pure” then the mark
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