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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?
What is meant by the term the triple constraint? What are the three elements of the triple constraint and why is an understanding of their relative weight significant in exercising
Consider a Cournot duopoly. The market demand is p=190-q1-q2. Firm 1's marginal cost is 40, and firm 2's marginal cost is also 40. There are no fixed costs. A. Derive every fir
In brief, the price of anything is based on comparative benefit. If Adam makes clocks better and cheaper than Bill, all clock production should go to Adam.
what is social cost
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Aska) Explain why each of the following factors may influence the own price elasticity of demand for a commodity. (i) Consumer preferences, that is, whether consumers regard the c
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