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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 prots?
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 prots?
Two rms produce dierentiated 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 prots?
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 prots?
Q1 An important first step to the statistical analysis of data is to "get to know your data". The following tasks should contribute to this. (a) To the right of the dataset c
factors that affect the volume of production in economy
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