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Now consider the same industry but assume that two firms with the same cost function * c(qi) = 2 × qi for i = {1,2} are active in this market. What is the price that realizes when they set prices in a simultanous move game (ie they play Bertrand). 0.50 firm is instead Assume now that the cost of the second c(92) = 5* 92 What is the equilibrium price if they again play Bertrand? (round to the nearest whole number) 1 A different industry has a Demand curve given by Q = 800p -2 Assume that a monopolist supplies this industry. The cost function of this monopolist is c(Q)=2*Q. What is the price the monopolist charges? 0 0 What is the quantity the monopolist sells?

Now consider the same industry but assume that two firms with the same cost function * c(qi) = 2 × qi for i = {1,2} are active in this market. What is the price that realizes when they set prices in a simultanous move game (ie they play Bertrand). 0.50 firm is instead Assume now that the cost of the second c(92) = 5* 92 What is the equilibrium price if they again play Bertrand? (round to the nearest whole number) 1 A different industry has a Demand curve given by Q = 800p -2 Assume that a monopolist supplies this industry. The cost function of this monopolist is c(Q)=2*Q. What is the price the monopolist charges? 0 0 What is the quantity the monopolist sells?

Economics:
Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter25: Monopoly
Section: Chapter Questions
Problem 14E
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Now consider the same industry but assume that two firms with the same cost function * c(qi) = 2 × qi for i = {1,2} are active in this market. What is the price that realizes when they set prices in a simultanous move game (ie they play Bertrand). 0.50 firm is instead Assume now that the cost of the second c(92) = 5* 92 What is the equilibrium price if they again play Bertrand? (round to the nearest whole number) 1
Transcribed Image Text:Now consider the same industry but assume that two firms with the same cost function * c(qi) = 2 × qi for i = {1,2} are active in this market. What is the price that realizes when they set prices in a simultanous move game (ie they play Bertrand). 0.50 firm is instead Assume now that the cost of the second c(92) = 5* 92 What is the equilibrium price if they again play Bertrand? (round to the nearest whole number) 1
A different industry has a Demand curve given by Q = 800p -2 Assume that a monopolist supplies this industry. The cost function of this monopolist is c(Q)=2*Q. What is the price the monopolist charges? 0 0 What is the quantity the monopolist sells?
Transcribed Image Text:A different industry has a Demand curve given by Q = 800p -2 Assume that a monopolist supplies this industry. The cost function of this monopolist is c(Q)=2*Q. What is the price the monopolist charges? 0 0 What is the quantity the monopolist sells?
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