Consider two firms with identical cost structures competing each other in the market of a good whose demand function is given by: P = 50-Q. Cost of a firm is given by C(Q)=10+ 02. Find the Cournot-duopoly equilibrium total output and price in the market. (Q=30, P=20) (Q=25, P-25) (Q-10, P=40)

Consider two firms with identical cost structures competing each other in the market of a good whose demand function is given by: P = 50-Q. Cost of a firm is given by C(Q)=10+ 02. Find the Cournot-duopoly equilibrium total output and price in the market. (Q=30, P=20) (Q=25, P-25) (Q-10, P=40)

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter10: Monopolistic Competition And Oligoply

Section: Chapter Questions

Problem 14SQ

See similar textbooks

Related questions

Q: Accumulate ₱53,960 at 12.6% compounded semi-annually for 5 years and 6 months.

A: Amount is compounded semi-annually, rate of interest per period is half of annual interest rate.

Q: Imagine that the production function for tuna cans is given by Q = 6K + 4L where, q = output of tuna…

A: Rate of technical substitution refers to the ratio of marginal product of labor to marginal product…

Q: 2. In February 2009, BLS statistics for the American population were: Employed 29.164 million…

A: Here, information about employed, unemployed and not in labot force is given using which one is able…

Q: 1. How do you think Fed policy might change if it included energy and food prices in its measure of…

A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…

Q: National Service Reserve Corporation

A: Welfare services Welfare refers to government-sponsored assistance programs for low-income…

Q: q TVC ATC/AC MC 0 0 65 2 105 3 135 4 167 5 a. 203 6 244 7 293 d. 8 55 355 9 432 10 527 e. 3. Draw…

A: TFC = Same for al the units as it is fixed. TC = TFC + TVC AVC = TVC/Q AC = TC/Q MC = TCn - TCn-1

Q: Which of the following countries do not experience scarcity? A.) United States of America…

A: In economics, the word 'scarcity' refers to the limited availability of resources in an economy.

Q: Lucia lives in Denver and enjoys drinking lattes and eating scones. The price of a latte is held…

A: Budget constraint shows all combinations of two goods that can be produced with the given level of…

Q: A copayment is a shared medical expense belween. A.a parent and child B.the insured and the…

A: Health insurance companies have introduced Co-payment systems in order to reduce the chance of moral…

Q: Engle sells chess sandwiches. The cost of ingredients (bread, meat, spices, etc.) to make a sandwich…

A: Total cost is the sum of total fixed cost and total variable cost. Average cost is given as the…

Q: 1.3 If the inverse demand function for radios is - p= a bq, what is the consumer surplus if the…

A: If the equilibrium price is a/2 then we find the quantity at that price so we replace this in the…

Q: Given this frequency distribution, what demand values would be associated with the following random…

A: Demand Frequency 0 29 1 12 2 19 3 40

Q: www.cocom - 16Q and MC = 4Q.) a. What level of Q maximizes net benefits (profits)? b. What is the…

A: Net Benefit is determined by summing all benefits and subtracting the sum of all costs of a project.…

Q: 1)Calculate the consumer price index in the year 2020 & 2021 . 2)Calculate the rate of inflation…

A: Cost of the basket = Quantity of copy * Price of copy + Quantity of pen * Price of pen + Quantity of…

Q: 1. The IS and LM analysis is a post-Keynesian model. What is your evaluation of the value of this…

A: The fiscal policy directs the usage of government spending and tax policies to control macroeconomic…

Q: 3 You are considering investing $3,000 at an interest rate of 8% compounded ar ally for five years…

A: Compound Interest: Compound interest and simple interest are different, because in compound…

Q: Briefly describe and explain the following investments terms a) savings c) Mutual funds e)…

A: Investments can be either economic or financial in nature. Purchases of goods and services required…

Q: Which of the following is NOT true about discount rate and statutory reserve requirement? O Both are…

A: The money supply is the aggregate sum of money, money, coins, and balances in ledgers — available…

Q: 1. A chemical company produces sodium bisulfate in 100-pound bags. Demand for the product is 40…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: A country reported nominal GDP of $200 billion in 2006 and $180 billion in 2005; it reported a GDP…

A: "GDP represents the market value of all the final products and services produced in a country at a…

Q: Question 30 The short-run Phillips curve is based on the assumption that there is_____.…

A: A. W. Phillips is credited with inventing the Phillips curve, which says that inflation and…

Q: Huawei as reference to explain 1. identify and illustrate the micro-foundations (that is,…

A: 1. Huаwei in the context of Chinese corporations and, in a few cases, non-Chinese corporations where…

Q: Use the table below to answer the following question. Units Total Fixed Cost Total Variable of…

A: Marginal cost eventually we can say that it is the actual change in the value of the total cost…

Q: 9. A cash flow has the following income values: $100 at end of year 2, $200 at end of year 3, $300…

A: When you earn interest on the principal amount of an investment (or loan), it is added back to the…

Q: TVC ATC/AC MC 0 0 1 65 2 105 3 135 4 167 5 203 6 244 7 293 d. 8 55 355 9 432 10 527 e. 6. Suppose…

A: Perfect competition market Perfect competition is the market in which there is a large number of…

Q: The period between a business cycle trough and the subsequent peak is called

A: The economy is the study of scarcity and limited resources. The choice is made in such a manner that…

Q: During the pandemic, stockpiling behaviours have been criticized in the newspapers and described als…

A: According to the game theory perspective, stockpiling toilet paper can be considered a strategic…

Q: Which factor of production is almost never included in a firm's fixed costs? Land Labor Capital All…

A: Fixed costs will be costs that don't differ with the sum created. Models are interest on debt,…

Q: Dollars F $15- e $10- $6 D $2 2,000 1,000 1,200 Quantity per period Use the graph above. If the…

A: Equilibrium is achieved at the output level where Qs equals Qd. Thus Q*= 2000 units and P*= $ 10

Q: During the pandemic, stockpiling behaviours have been criticized in the newspapers and described as…

A: A socially desirable outcome is such an outcome that maximizes overall society's payoff.

Q: What is the accumulated amount after three years of P6,500 invested at the rate of 12% per year…

A: Semi-annual compounded interest refers to the two times compounded interest in a year.

Q: 12. In calculating the annual worth of an alternative over one life cycle, the value obtained is: a.…

A: Introduction Annual Worth All cash flows are converted to an equivalent uniform annual amount over…

Q: 7-10. A crane rental company has acquired a new heavy-duty crane for $300,000. The company…

A: Introduction Depreciation Depreciation in the most simple form is the reduction in the value of the…

Q: 9. A cash flow has the following income values: $100 at end of year 2, $200 at end of year 3, $300…

A: The present value (PV) of a future sum of money or stream of cash flows is the value of that sum or…

Q: Import tariff against a foreign monopolist a) welfare improving only if a foreign firm is not…

A: Import tariffs are the taxes which are imposed by the domestic government on the imported goods of…

Q: Question 12 As rural parts of central Africa become more urbanized and developed, bushmeat…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: 2. What is the significance role of financial institutions, is and how it operates? of understanding…

A: Any central bank is the financial institution that is given a privileged control over the production…

Q: A6 describe the changes of current, capital, and financial account balances. Is the deficit of…

A: Balance Of payment Balance of payment refers to the statement of a country that shows the inward…

Q: Let’s consider an economy where all firms are favouring remote work to favour physical distancing…

A: Due to pandemic to reduce from spreading remote work is the good option that a firm can offer to…

Q: When compleling an insurance application, a producer should A.complete as much of the applicalion…

A: Insurance application refers to the document with all the necessary information related to insurer,…

Q: Question A16 (a) Identify and explain three potential barriers to marketing planning. (b) Evaluate…

A: Market is the place or platform where people of various needs throng together to carry out their…

Q: Identify 3 examples of motivated sellers who may be willing to accept a no-money-down offer?

A: When a seller has a property with negative cash flow, expensive repairs, or is facing foreclosure,…

Q: 1. Which of the following generates the network economies of scale? i) Tiktok ii) Coffee from…

A: At the marketplace, network economies of scale refers to the situation when networking allows a firm…

Q: 13. Describe the features of monopolistic competition: a. How is it similar to monopoly? b. How is…

A: Market refers to the place where buyers and sellers interact each others and exchange the goods in…

Q: Q1. What is the economics of international economy? Briefly discuss the evolution of the classical…

A: International economics is concerned with the effects of international differences in productive…

Q: TFC TVC 0 65 105 135 4 167 5 a. 203 6 244 7 293 8 55 355 9 432 10 527 4. Explain why the short-run…

A: In a market, firms general have similar cost functions due to the nature of production process and…

Q: Consider a Solow model with no technological progress or population growth, s=0.5, -0.05, y = √k,…

A: At steady state, investment is equal to depreciation which implies rate of change of capital per…

Q: Discuss the Fundamentals of Cooperatives. What is the importance of Cooperatives in a healthcare…

Q: State two improvements of the Baumol-Tobin theory in relation to the Liquidity Preference Theory of…

A: Liquidity Preference Theory is a model that proposes that an investor should demand a higher…

Q: 9. Answer ALL parts of this question. Consider a standard Hecksher-Ohlin world, with the following…

A: H-O model refers the international trade concept. As per his theory trade happens dur to factor…

Question

Consider two firms with identical cost structures competing each other in the market of a good whose demand function is given by: P = 50-Q. Cost of a firm is
given by C(Q)=10+Q2. Find the Cournot- duopoly equilibrium total output and price in the market.
(Q=30, P=20)
(Q=25, P-25)
(0-10, P=40)
10=20, P=30)

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 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

A common characteristic of oligopolies is a. interdependence in pricing decisions. b. independent pricing decisions. c. low industry concentration. d. few or no plant-level economies of scale.
Consider a Cournot duopoly with a demand function of p=10-Q(where Q=q1+q2) and a constant marginal cost of c>0. a) Find the two firms’ best-response functions. b) Find the Nash equilibrium output. c) What happens to the equilibrium market price as c increases (assuming that c remains below 10)? d) What happens to the equilibrium market price if c increases above 10?
Two identical firms currently serve a market. Each has a cost function of C(q) = 30q. Market demand is P(Q) = 80 − 0.01Q. The firms compete by setting prices simultaneously as in Bertrand competition. Let PB represent the equilibrium Bertrand duopoly price.The firms have proposed to merge, and they announce that this merger will result in considerable cost savings. The firms’ new cost function will have the form Cm(q) = cq + 100, 000. Note that the merged firm has positive fixed costs while the unmerged firms do not. (a) What is the merged firm’s profit-maximizing price if the merger is approved? Is it possible for the cost savings (via c < PB) to be sufficiently large for the merged firms’ profit-maximizing price to be below the duopoly equilibrium price? (b) Suppose that the Department of Justice permits the merger with the requirement that the new (post-merger) price must be no greater than the pre-merger price. Under what circumstances are the firms willing to go through with…
The market demand curve faced by Stackelerg duopolies is: Qd = 12,000 - 5P where Qd is the market quantity demanded and P is the commodity's price in dollars. Firm A's marginal cost is: MCa = 0.08qa where MCa is Firm A's marginal cost in dollars and qa is the quantity of output produced by Firm A. Firm B's marginal cost equation is: MCb = 0.1qb where MCb is Firm B's marginal cost in dollars and qb is the quantity of output produced by Firm B. Because of Firm A's lower marginal cost, Firm B has conceded the power to move first to Firm A. a. Given Firm B will move second, what is the equation for Firm B's reaction function with qb expressed as a function of qa? b. Given Firm A can move first, what quantity of output will Firm A produce? c. What quantity of output will firm B produce? What price will be established for the commodity?
Consider a duopoly where firms compete in prices and firms do not have any capacity constraints. Market demand is P(Q)=45-4Q, and each firm faces a marginal cost of $9 per unit. How much is each firm's total variable cost if firms equally divide the market at Nash equilibrium?
Consider a market that is a Bertrand oligopoly with 5 firms in the market. Each of these firms produce an identical product and each have the same cost function of C(Q) = 80Q. The inverse market demand for this product is P = 2480 – 2Q. How much does EACH firm produce at the equilibrium price?
Two firms operate in a Cournot Duopoly with an inverse market demand function: P = 180 – 3Q, where Q = q1 + q2. Firm 1 has a total cost structure; TC1 = 50 + 2q1 + 2q1 2 and firm 2 had a total cost structure: TC2 = 100 + 3q2 + 3q2 2 . Answer the following questions: a. If both firms wish to compete, what is the optimal quantity for each firm (qi) and the market price? b. What are the profits for each firm from the strategy in part a? c. If both firms choose to collude and not directly compete, what is the new price, quantity, and profits for each firm?
Consider a market that is a Bertrand oligopoly with 5 firms in the market. Each of these firms produce an identical product and each have the same cost function of C(Q) = 80Q. The inverse market demand for this product is P = 2480 – 2Q. What is the equilibrium market price?