Solve it correctly please. I ll rate accordingly. Explain well and typed answer only. Consider Cournot duopolists facing demand P=50-Q. Both firms’ total costs are equal to 15q. Find price and profits for the two firms in equilibrium.

Solve it correctly please. I ll rate accordingly. Explain well and typed answer only. Consider Cournot duopolists facing demand P=50-Q. Both firms’ total costs are equal to 15q. Find price and profits for the two firms in equilibrium.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter26: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 11E

See similar textbooks

Related questions

Q: Janet Foster bought a computer and printer at Computerland. The printer had a $600 list price with a…

A: Cash discount received = Net amount payable* discount rate Total Interest paid = Amount borrowed*…

Q: If a French car costs 10,000 euros, a similar American car costs 15000 dollars, and a euro can buy…

A: The nominal exchange for EUR/USD as per in the question is given as 1.2.That is in generall or…

Q: You may be familiar with Phase 3 of the Marvel Cinematic Universe, which ends with the hugely…

A: The curve that shows the combination of two good that an economy can produce with the given factors…

Q: Problem Find all pure-strategy pooling and separating perfect Bayesian equilibria in the following…

A: In the above game there are two players : Player 1 & 2 Strategy Set of Player 1 : { L , R }…

Q: Consider the standard Harris-Todaro framework for rural-urban migration from class. I.e. there is a…

A: Some problems with rural-urban migration are explained by the Harris Todaro model. When expected…

Q: Use the Fishcher Model to explain the relationship between inflation, interest rate and unemployment…

A: The connection between real and nominal interest and inflation rates is described by Irving Fisher's…

Q: Emeril owns his own restaurant, which earns a yearly total revenue of $1,100,000. The yearly cost of…

A: Explicit Cost: Explicit costs are out-of-pocket costs for a firm—for example, payments to labour,…

Q: 3. Player 1 and Player 2 are going to play the following stage game twice: Top Bottom Left 4,3 0,0…

A: NE(Nash equilibrium) is used to achieve the best strategy in a non-cooperative game. NE doesn't…

Q: In the context of the IS-LM model, assume that the aggregate price level falls. Based solely on…

A: The equilibrium in the IS-LM model occurs where the IS curve intersects the LM curve.

Q: Are vaccines considered as public good? Show in graphical explanation or representation. 2.…

A: Since, multiple questions have been asked by you , we will solve first question for you. Please…

Q: An automobile dealer has recently advertised its car for a full down payment of RO 10000.…

A: To determine the best available option the present value will be calculated for the both available…

Q: A key assumption in an endogenous growth model with both labour and capital inputs in the production…

A: Economic theory known as endogenous growth theory states that an economys internal processes are…

Q: 3. Refer to the data on the right. A. Solve for variable cost (VC). B. Assume the selling price is…

A: At zero level of output (or total product), the total cost and fixed cost are equal. And fixed…

Q: Use the data below to answer the questions: Price Quantity Demanded Total Revenue Marginal Revenue…

A: Total revenue is the product of price of good and quantity. Marginal revenue is the revenue from…

Q: What is the main issues/criticism in monopoly market.

A: A corporation that has a monopoly is one that essentially provides all of an item or service, giving…

Q: What would be the Primary deficit if fiscal deficit is 77 and Interest payment is 66?

A: Interest payments are the expense of acquiring cash. The borrower makes these payments as well as…

Q: Suppose the price-demand equation for a product is f(P) = 625 - 2P². Find the elasticity of demand…

A: The Elasticity of demand measures the quantitative change in the demand in response to the change in…

Q: Which of the following best explains what happened? Price $3.00 $2.75 $2.50 $2.25 $2.00 $1.75 $1.50…

A: The demand curve represents the amount of a good demanded at different price levels. For a normal…

Q: Assume you own a copper mine. The mine has total known reserves of 500 (million metric tons). The…

A: Intertemporal choice is the choice problem in economics. It is the process by which consumers make…

Q: An economy is in equilibrium. Calculate national income from the following: Autonomous consumption =…

A: Investment expenditures are a critical consider the short run macroeconomic examination of business…

Q: Question 69 Suppose a banking system has $ 120,000 of checkable deposits and actual reserves of $…

A: The reserve ratio is the portion of reservable liabilities that commercial banks must hold onto,…

Q: Identify a situation that involves making decisions using expected value, and detail the different…

A: Expected value is a computation of what you should expect to get per game in the long term. The…

Q: The table above shows Econland’s economy aggregate demand and aggregate supply schedules. Econland’s…

A: Aggregate demand is the sum of Consumption, Investment, government spending and net export. There…

Q: Given a demand function of Q = 20 - 2P, find the price range for which; A) Demand is elastic

A: Given, demand function=20-2PdQ/dP= -2 A) Elasticity of demand (Ed) = -dQ/dP×P/Q =- (-2)×P/20-2P…

Q: How does war affect the economic development and quality of life in a particular region?

A: The process by which low and less developed countries become economic powers is known as economic…

Q: Would a rational investor rather have $5,000 today or $3,000 in year 4 and $3,000 in year 67 Assume…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: the country export or import paper? How much? 7. Which of the following would do most to cut the…

A: A carbon tax directly sets the price of carbon by defining a tax rate for GHG emissions or – more…

Q: financial globalisation.

A: The term financial globalization related to inflow and outflow of the capital in between the…

Q: If the calculation of the poverty line included the value of government programs as income, the…

A: The poverty rate of a country is merely and actually calculated basically on the basis of either…

Q: Which of the following is most restricted to flow across national boundaries? A. People. B. Capital…

A: The primary categories of international investment include the portfolio investment and foreign…

Q: In Macroland potential GDP equals $20 billion and real GDP equals $19.2 billion. Macroland has a(n)…

A: A recessionary gap is a macroeconomic term utilized when a nation's real GDP is lower than its Gross…

Q: 1. Complete the table on the right by computing for the values of average product and marginal…

A: law of diminishing marginal returns means when firm hire more and more labor with fixed factor then…

Q: (a) Suppose we have the following production function: Q= Suppose K is fixed in the short- run at…

A: DISCLAIMER “Since you have asked multiple questions, we will solve the first three questions for…

Q: Suppose that the production function is Y=SRN- With this production function, the marginal product…

A: In economics, a production function gives the technological relation between quantities of physical…

Q: Explain the differences between diminishing marginal returns and diseconomies of scale.

A: Since the marginal return can be defined as the additional return by purchasing an additional…

Q: If a price ceiling is set at $2 in the above market, there is excess blanks.) O Supply, 3 Supply, 2…

A: Consumer surplus is the area below demand curve and above price. Producer surplus is the area below…

Q: Prove that the marginal cost line (MC) crosses the Average Variable Cost line (AVC) at its minimum

A: Marginal cost (MC) refers to the production cost of an additional unit of output. An Average…

Q: asmeen purchased stock on January 30, 2017. If she wishes to achieve a long-term holding period,…

A: Capital assets are a type of asset the taxpayer purchases as a long-term investment. The purpose of…

Q: Transactions demand for currency reflects which of the following?: Mark all that apply Demand to…

A: Money is the medium of exchange that is used for economic transactions. Money can be in the form of…

Q: Which is regarded as an automatic stabilizer in the economy?

A: Introduction Automatic stabilizers refer to government spending and taxes that automatically…

Q: Unemployment that results because it takes time for workers to search for the jobs that best suit…

A: Unemployment, as per the OECD, is individuals over a predetermined age not being in paid business or…

Q: Wisconcheese is a cheese producer and the monopolist in the market for Wisconsin cheese. Which price…

A: A monopolist firm produces at the intersection of the MR and MC curve in order to maximize profit.…

Q: The illustrates the combinations of two goods that a society can produce if all of its resources are…

A: The concept of absolute advantage illustrates the ability of a person, firm, or nation to produce…

Q: Please give only typed answer. Assume the following expendiexpenditure function. (a) Interpret…

A: Expenditure function gives the minimum amount of money required by the consumer to achieve a given…

Q: w = 40, r = 40, AFC = 0.2 and ATC = 4.2. Based on this information, what is the firm's average…

A: In the short run, capital is fixed and labor can vary. So, money spent on capital is a fixed cost.…

Q: Suppose the monopolist cannot price discriminate between new and returning customers, what would be…

A: Price discrimination is a concept in economics under which a monopoly can charge e differentiated…

Q: Consider the following economy C=1000+0.4(Y-T) 1=500 T=400 G=300 What is the investment of…

A: Aggregate demand is the sum of Consumption, Investment, government spending and net export in an…

Q: Based on the inflation rate between 2008 and 2009 and between 2013 and 2014, if your boss told you…

A: Purchasing power is the value of a currency expressed in terms of the number of goods or services…

Q: 5. ConnBank has made two types of loans-A and B-each has the principal of $1. The probability of…

A: Expected value (EV) explains the long-run average level of a random variable based on its…

Q: Suppose there are two major groups in the labor force, adults and teenagers, with adults divided…

A: The unemployment rate is calculated as Unemployment rate =No of Unemployed peopleLabor force×100 Let…

Question

Solve it correctly please. I ll rate accordingly. Explain well and typed answer only.

Consider Cournot duopolists facing demand P=50-Q. Both firms’ total costs are equal to 15q.

Find price and profits for the two firms in equilibrium.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Answer it correctly please. I ll rate accordingly. Explain well and typed answer only. Consider Cournot duopolists facing demand P=50-Q. Both firms’ total costs are equal to 15q. Find price and profits for the two firms in equilibrium.
Suppose the inverse demand for a duopoly is given by P = 30 – Q. Marginal cost is given by €12. The quantity that each firm will produce in the Cournot equilibrium is A. 12 B. 6 C. 3 D. 18
1. Consider a Cournot duopoly with the inverse demand P = 260 - 2Q. Two firms compete choosing their quantities. Both firms have constant. marginal and average cost MC = AC = 20. a. Find each firm's best response function. b. Find the Cournot equilibrium. c. Plot the best response curves and illustrate the equilibrium point.
Based on the demand schedule, at what quantity should the firms under duopoly and collusion will agree to produce? Explain.
The graph below shows a demand curve for a firm operating in an oligopolistic market. Instructions: Enter quantities as a whole number. Round prices 2 decimal places. a. What is the profit maximizing price and quantity when marginal cost is MC1? The firm will produce units at a price of $ . b. Suppose marginal cost increases to MC2, what is the profit maximizing price and quantity after marginal cost changes? The firm will produce units at a price of $ .
If the largest two firms in the textbook industry merged, their new total market share would equal 41% of the market. This industry's new HHI would be 2182. According to the FTC's historical guidelines for mergers, would the FTC approve this merger? Group of answer choices No answer text provided. Maybe. The FTC would scrutinize the merger and make a case-by-case decision. Yes, the FTC would ignore the merger and allow it to go through. No, the FTC would probably challenge the merger.
Now, assume your buffalo wing firm is in a Cournot oligopoly with 3 additional firms. The market elasticity of demand for buffalo wings is -0.70. Find your firm’s elasticity of demand. Now find the profit-maximizing price for your firm if your marginal cost is $3.70.
Bertrand duopolists face MWTP = 6 - Q and can produce any quantity without marginal and fixed cost. If the two firms compete for only 1 period, what is a Nash equilibrium price? (Assume prices must be in whole cents. Remember, do not enter the $ sign.)
Suppose that the market demand for facial mud packs are given as follows: P = 2.200 - Q. Mud packs can be produced at no cost. Determine the level of output that would be produced by each firm in a cournot duopoly in the long run. Calculate th price charged for mud packs. Show all calculations.
1. Perloff Chapter 14, Exercise 3.13 3.13 A duopoly faces an inverse market demand function of p = 120 - Q. Firm 1 has a constant marginal cost of 20. Firm 2's constant marginal cost is 40. Calculate the output of each firm, market output, and price in (a) a collusive equilibrium or (b) a Nash-Cournot equilibrium. (Hint: See Solved Problem 14.10.) M
The demand the duopoly firms face is p = 100 – 2Q where Q = q1 + q2. Each firm has the following cost function: c(qi) = 40 + qi2/2, i = 1, 2. Using calculus, determine the Stackelberg equilibrium. determine the Cournot equilibrium. plz answer correct calculation asap plz Dont answer by pen pepar plz