If two identical firms with marginal cost 5 and demand curve P=70-2Q compete using the Cournot model, find Q1. Select one: O a. 4.167. O b. 13.67. O c. 1.94. O d. 4.
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- In the accompanying figure, if output increases from Q1 to Q2, the firm:a. Decreases its marginal revenueb. Increases its marginal revenuec. It decreases its profitsd. It increases its profits.Please, for each of these alternatives, argue whether they are true, false or uncertain.7. find the amount of firms which exist in the industry for M = 2,4,6,8 Use a cournot model with linear demand and identical firms scaled by M Q(P) = M(D-P) TC(Q) = cQ+F D=6 c=2 F=2Questions: A) How much less do each of these firms earn in the Nash equilibrium than if they jointly maximize profits? Please provide me with the correct answer, complete with a detailed explanation and calculations; otherwise, I will give multiple downvotes.Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
- Cournot competition: P=200-Q (hint: Q is industry output), both firms have constant MC=5. What are the Nash Equilibrium price and quantity for both firms? Please show all stepsJ 4 (Cournot Model) There are two firms (N=2), Airbus and Boeing, in the market. Each firm’s cost is MC=AC=20. The market demand is Q=100-(1/2) P. Both firms simultaneously select quantities. a) Find each firm’s reaction function. b) Find a pure Cournot Nash Equilibrium (NE). Show the market quantity and price (Q and P), each firm’s quantity and profit (qi and I, i=Airbus, Boeing), producer surplus (PS) and consumer surplus (CS) in the NE.In the Stackelberg model, the firm that sets output first has an advantage. Explain why using your own words.
- Answer the given question with a proper explanation and step-by-step solution. Suppose inverse demand is given by the following: P = 40 - 0.5Q There are two firms each with the same marginal cost. Marginal Cost is 10. Under Cournot competition, what is the output for firm one? 10 20 25 30Under perfect competition, each firm is a price taker. Suppose a single seller in the wheat market. The company produces and markets wheats at a Price = $38 per container. The firm’s total costs are given as: TC = 10 +2Q + 3Q2 A. Find the Firm’s marginal cost? Show your steps, including graphs. Review additional resources? Hint: See the rules for differentiation B. is the firm’s demand curve? Show it on a graph and label the axes showing P and Q C. What level of output should the firm produce? Hint: Set P = MC and solve for Q. Use a graph to show your answers as well D. What is the firm Fixed Cost? Why? Also, use a graph to support your answer. E. What price should the firm charge? Why?You are a profit-maximizing firm. Suppose there are two types of customers (50% of 1 type, 50% of the other) who shop in your specialty clothing store. Consumers of type R will pay __B= $80__ for a coat and __C= $ 60__ for pants. Consumers of type S will pay __D= $60__ for a coat and __E= $ 75__ for pants. Your firm faces no competition and but it does pay for the clothing, __F=$30__ per coat and __G= $ 50__ per pair of pants, i.e. MCcoat = __F= $30__ and MCpants= __G= $ 50__. You can’t price discriminate. You offer the same prices to all your customers.Suppose instead that you only offer a bundle of one coat and one pair of pants (which we would call a suit.) What is the profit-maximizing price to charge for the suit?Answer: Price for suit = $_______
- You are a profit-maximizing firm. Suppose there are two types of customers (50% of 1 type, 50% of the other) who shop in your specialty clothing store. Consumers of type R will pay __B= $80__ for a coat and __C= $ 60__ for pants. Consumers of type S will pay __D= $60__ for a coat and __E= $ 75__ for pants. Your firm faces no competition and but it does pay for the clothing, __F=$30__ per coat and __G= $ 50__ per pair of pants, i.e. MCcoat = __F= $30__ and MCpants= __G= $ 50__. You can’t price discriminate. You offer the same prices to all your customers.Answer True or False and then show or explain how you reached your conclusion.: Profits in Part (B) with bundling are higher than in Part (A) of this problem.Answer: ________________You are a profit-maximizing firm. Suppose there are two types of customers (50% of 1 type, 50% of the other) who shop in your specialty clothing store. Consumers of type R will pay __B= $80__ for a coat and __C= $ 60__ for pants. Consumers of type S will pay __D= $60__ for a coat and __E= $ 75__ for pants. Your firm faces no competition and but it does pay for the clothing, __F=$30__ per coat and __G= $ 50__ per pair of pants, i.e. MCcoat = __F= $30__ and MCpants= __G= $ 50__. You can’t price discriminate. You offer the same prices to all your customers.(A) Suppose you post a price for a coat and a price for pants. What are the profit-maximizing prices to charge?Answer: Price for coat = $_______ ;Answer: Price for pants =$_________Q2. Which model's equilibrium price and quantity most closely matches perfect competition? a. Bertrand Competition with Identical Goods b. Stackelberg Duopoly c. Monopolistic Competition d. Cournot Oligopoly