Firm A with total cost function CA = 60qA and Firm B with total cost function CB = 80qB are the %3D only suppliers of a product that has market demand P = 280 – Q. Under Cournot Duopoly the equilibrium price equal to
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Q: The inverse market demand in a homogeneous-product Cournot duopoly is P = 200 − 3(Q1 + Q2) and costs…
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- The inverse demand for a homogenerous-product STakelberg duopoly is P=18,000-5Q. The cost structures for the leader and the follower, respectively, are CL(QL=2,000QLand CF(QF)=4000Qf. What is the follower's reaction function? Determine equilibrium output level for both leader and follower. Determine the equilibrium market price. Determin the profits of the leader and the follower. Please answer correct please asap please Don't answer by pen paper plzTwo firms compete in a market to sell a homogeneous product with inversedemand function P = 960-6Q. Each firm produces at a constant marginal cost of$60 and has no fixed costs. Assuming Cournot duopoly, computei. Reaction functions for each firmii. Profits of each firmiii. Consumer surplusiv. Total welfare loss relative to perfect competition (if any)A homogeneous products duopoly faces a market demand function given byP = 300 − 3Q, where Q = Q1 +Q2. Both firms have constant marginal cost MC =100.a) What is Firm 1’s profit-maximizing quantity, given that Firm 2 produces an output of 50 unitsper year?
- The market demand curve faced by Cournot duopolistsis: Qd = 400 - 8P where Qd is the market quantity demanded and P is the commodity's price in dollars. a. Firm A has a constant marignal cost of $10. What is the equation for Firm A's reaction function with qa expressed as a function of qb? b. Firm B has a constant marginal cost of $7.50. What is the equation for Firm B's reaction function with qb expressed as a function of qa? c. What quantity of output will each firm produce in equilibrium? What price will be established for the commodity?Two firms engage in Cournot competition in the Everlasting Gobstopper industry. The price elasticity of demand is-2. Firm 1 has aconstant marginal cost of $110.00 per unit, and firm 2 has a constant marginal cost of $181.50 per unit. If the two firms are currently inequilibrium, what is firm 2's share of the market? Enter your answer as a decimal, rounded to two places if necessary.______ Please show all stepsCournot’s Model of Duopoly) Joe and Rebecca are small-town ready-mix concrete duopolists. The market demand function is Qd=5500-25P, where P is the price of a cubic metre of concrete and Qd is the number of cubic metres demanded every year. The marginal cost is $40 per cubic metre. Competition in this market is described by the Cournot model. (a)Given Rebecca’s output is 2000, what is Joe’s residual demand function? What is Joe's output so he maximizes his profit? (b)If Rebecca’s output is qR, what is Joe’s best response function? (c)If Joe’s output is qj, what is Rebecca’s best response function? (d)Plot both Joe and Rebecca’s best response functions on one graph, where the the horizontal axis represents Rebecca’s output qR and the vertical axis represents Joe's output qR. (e)What is the meaning of the interception of the two best response functions?
- only typed answer The inverse demand for a homogeneous-product Stackelberg duopoly is P = 26,000 −4Q. The cost structures for the leader and the follower, respectively, are CL(QL) = 2,000QL and CF (QF) = 4,000QF. a. What is the follower’s reaction function? QF = − QL b. Determine the equilibrium output level for both the leader and the follower. Leader output: Follower output: c. Determine the equilibrium market price. $ d. Determine the profits of the leader and the follower. Leader profits: $ Follower profits: $1. Two firms compete in a market to sell a homogeneous product with inversedemand function P = 960-6Q. Each firm produces at a constant marginal cost of$60 and has no fixed costs.a. Assuming perfect competition, computei. Equilibrium price and quantityii. Profits and producer surplusiii. Consumer surplus and total surplusb. Assuming Cournot duopoly, computei. Reaction functions for each firmii. Profits of each firmiii. Consumer surplusiv. Total welfare loss relative to perfect competition (if any)c. Assuming the firms collude and act as a monopolist, computei. Equilibrium price and quantityii. Total profitsiii. Consumer surplusiv. Total welfare loss relative to perfect competition (if any)d. Rank the output quantities, profits, and total welfare by the three marketstructures aboveThe inverse demand for a homogeneous-product Stackelburg duopoly is P=24000-5Q. The cost structures for the leader and the follower respectively are CL(QL)=3000QL and CF(QF)=4000QF. a) What is the followers reaction function? b) Determine the equilibrium output level for both the leader and the follower. Leader output: Follower output: c) Determine the equilibrium markert price $ d) Determine the profits of the leader and the follower. Leader profits: $ Follower profits: $
- Please solve all the parts and only typed answer The inverse demand for a homogeneous-product Stackelberg duopoly is P = 16,000 – 4Q. The cost structures for the leader and the follower, respectively, are CL(QL) = 4,000QL and CF (QF) = 6,000QF. What is the follower’s reaction function? Determine the equilibrium output level for both the leader and the follower. Leader output: Follower output: Determine the equilibrium market price. Determine the profits of the leader and the follower. Leader profits: Follower profits:The inverse demand function for a homogeneous product Stackelberg duopoly is P = 18, 000 − 5Q. Thecost structure for the leader and follower, respectively, are CL(QL) = 2, 000QL and CF (QF ) = 4, 000QF .(a) What is the follower’s reaction function?(b) Determine the equilibrium output level for both the leader and follower.(c) Determine the equilibrium market price.(d) Determine the profits of the leader and the follower.What are the characteristics of EACH of the TWO marketstructures? Characteristic Perfectly competitive market and Monopoly marketBarriers to entryControl over price Number of firms