if there are two firms both have the same MC= 30$. the inverse market demand P=150- (q1 +q2). what is the quantity equation for each firm and what is their profit at equilibrium?
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if there are two firms both have the same MC= 30$. the inverse market
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- Consider an identical n-firm Cournot market with market size S = 1, total demand p = 10 − Q (where Q is the total market quantity), and the total cost for each firm is C(q) = 1 + q. Assuming that firms continue to enter so long as profit is not negative, how many firms will enter the market in equilibrium?The total cost function of one of the firms is expressed by C(Q) = 100 + 4Q2, and demand is P = 80 – 4Q Find the equilibrium price and total quantity that the industry produces. Suppose that Jollibee successfully acquired McDonalds through a hostile takeover. What would be the new equilibrium price and quantity if MR = 80 – 4Q? Is this hostile takeover beneficial?Consider an industry with with two, price-taking firms, the firms face an (inverse) demand function: Pb = 215 - 3 Qb. The marginal cost for firm 1 is given by mc1 = 8 Q. The marginal cost for firm 2 is given by mc2 = 3 Q. How much will the industry produce ?
- A firm with market power faces the demand function q = 2,000- 40P. The firm's marginal cost function isMC(q) = 10 +0.002q.If the firm establishes a block pricing structure with two different prices, identify the two prices the firm will use to maximize producer surplus. Give your answers to two decimal places.P1=________P2=________If the market demand curve is Q = 100−p, what is the market price elasticity of demand? If the supply curve of individual firms is q = p and there are 50 identical firms, draw the residual demand facing any one firm. What is the residual demand elasticity facing one firm at the competitive equilibrium.Suppose Firm X is a dominant firm in a market where the market demand is Q = 1200 -2p. Once Firm X sets its price, those small competitors set their prices a little lower so that they can always sell up to their capacity. Assume the small firms’ combined capacity is 100 units. Further assume Firm X’s marginal cost is 50. Answer the following questions. Let Q^D be the quantity produced by the dominant firm. Write down the residual demand function faced by Firm X. (Hint: Think about how Q and Q^D are related.) Find Firm X’s profit-maximizing price.
- Consider the following market demand function: Q= 20-2P, where P is the market price. Suppose there are two firms- A,B in the market and they have the same cost function: the per unit cost of producing output is 4. The firms compete by choosing quantities. Find the reaction functions for both the firms if they are maximizing profits. What is the profit maximizing output for each firm and corresponding market price? If there was only one firm in the market how would your answer change?Consider a competitive industry with a market demand curve of P = 252 – Q, where P is market price and Q is the quantity demanded in the market. Each firm in the industry has a cost function of TC = 196 + q2, if q > 0 where q is output of the individual firm (TC = 0 if q = 0). The market is initially in long-run equilibrium. The government decides to regulate the industry by issuing licences to all firms currently in the industry, and not to allow any further entry by other firms without a licence. That is, the number of licences is fixed, and entry requires that an existing licence holder sells their licence to the potential entrant, leaving the number of firms producing in the industry fixed. Subsequent to the introduction of this regulation, the market demand curve shifts to P = 432 – Q. What is the value of the licence?Determine the profit-maximizing LOADING... prices when a firm faces two markets where the inverse demand curves are Market A: pA=100−2QA, where demand is less elastic, and Market B: pB=60−1QB, where demand is more elastic, and Marginal Cost=m=20 for both markets. Part 2 For Market A: pA=$enter your response here. (Round your response to two decimal places.) Part 3 For Market B: pB=$enter your response here. (Round your response to two decimal places.)
- Consider a market with only two firms. The firms operate in a Stackelberg type market where Firm 1 is the follower & Firm 2 is the leader. The market inverse demand function is: P = 120 – 2Q, where Q = q1 + q2. Each firm has a similar cost structure with a marginal cost; MC = 12, though each have different fixed costs; FC1 = 50 & FC2 = 80. 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?*COULD YOU SOLVE D-F* Suppose the inverse demand function is P = a −bQ, where a is the market price whenQ=0 and b is the slope of the function. Suppose there are two firms, Firm 1 and Firm 2, where their cost functions are denoted by Ci(Qi) = ciQi for i ∈{1, 2}. a) Write the profit function for each firm with price as a function of Q1, Q2 b) Solve for M Ri for i ∈{1, 2}and solve for the Best Response Functions (where M Ri = M Ci) c) Solve for the Nash Equilibrium. Note that your answer will be in terms of (a, c1, c2, b) d) Solve for the price of the market, P using the inverse demand function and your answersfrom part (c). Note that your answer will be in terms of (a, c1, c2, b) e) Solve for the profit for each firm. Note that your answer will be in terms of (a, c1, c2, b) f) If c1 = c2, what value of a will profit equal 0 for both firms?Consider a homogeneous goods industry where two firms operate and the linear demand is given by p(y1 + y2 ) = a - b(y1 + y2 ), where p is the market price, and y1 (y2) is the output produced by firm 1 (2). There are no costs for firm 1 or firm 2. Derive the best responses (reaction curve) for firm 1 and firm 2. Explain the term best response (reaction curve). Illustrate the best responses in a diagram.