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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 the difference between real and nominal Gross Domestic Product? National Income consists of a price and a quantity element. When the price level doubled along with simi
1. Imagine that two countries, Richland and Poorland can produce just two goods, computers and coal. Assume that for a given amount of land and capital, the output of these two pro
what are the steps in location decision.
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Question 1: (a) "Money demand is inversely related to interest rates and is stable over time." Discuss the theoretical and empirical validity of this statement. (i) Analyse
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QUESTION (a) Explain the Law of demand and the factors affecting demand for a product or service. (b) Explain and illustrate diagrammatically how the market demand for a pro
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