Business, 17.03.2020 02:07, alexaguayza6

Consider an oligopoly in which firms choose quantities. The inverse market demand curve is given by P=a−b(q1+q2), where q1 is the quantity produced by Firm 1, and q2 is the quantity produced by Firm 2. Each firm has a marginal cost equal to c. What is the equilibrium market quantity if the two firms acted as a cartel (i. e., attempt to set prices and outputs together to maximize total industry profits). How about the equilibrium market price? Instead of cartel, suppose now firm 1 acts as the leader and firm 2 acts as the follower. What is the Stackelberg equilibrium quantities determined by each firm? What is the equilibrium market price? Find π1π2 using the Stackelberg quantities and price. Whose profit is higher?

Answers: 2

Show answers

Other questions on the subject: Business

Business, 22.06.2019 11:00, cedricevans41p4j3kx

The following information is available for ellen's fashions, inc. for the current month. book balance end of month $ 7 comma 000 outstanding checks 700 deposits in transit 4 comma 500 service charges 120 interest revenue 45 what is the adjusted book balance on the bank reconciliation?

Answers: 2

continue

Business, 23.06.2019 02:30, chriscook1466

For the year ended december 31, 2019, davidson mart had sales of $ 550 comma 000 and cost of goods sold of $ 412 comma 500. davidson estimates that approximately 2% of the merchandise sold will be returned. the adjusting journal entry on december 31, 2019, would include a

Answers: 3

continue

Business, 23.06.2019 07:00, TheMixingToad

Will mark you the which of the following groups has caused ongoing conflicts in afghanistan? a. the sinhalese majority b. natalitesc. kashmir sikhsd. the taliban

Answers: 2

continue

Business, 23.06.2019 19:30, powpow71

Zach will be using powerpoint in a speech he is giving to the local rotary club. according to your textbook, zach should a. check the equipment and setup of the room in which he will be speaking. b. distribute handouts of his slides for the audience to look at during his speech. c. bring a flash drive with a backup of his slides. d. all of the above. e. a and c only.

Answers: 3

continue

Do you know the correct answer?

Consider an oligopoly in which firms choose quantities. The inverse market demand curve is given by...