In the Cournot duopoly model, each firm assumes that (select all that applies) a. Group of answer choices b. the price of its rival is fixed. c. the output of its rival is fixed. d. rivals will match price cuts but will not match price increases. e. rivals will match all reasonable price changes.
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In the Cournot duopoly model, each firm assumes that
(select all that applies)
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- There are two groups of firms below. Group 1: firms in the retail sector (e.g. Amazon; Wal-Mart; Target; Kohl's; Sears; Macy's) Group 2: firms in the wireless services industry (e.g. Verizon; AT & T; Sprint/T-Mobile) (this about telecommunication services, not about the sale of phones) For each group determine and explain if the group is monopolistic competitive or an oligopoly. You need to specific for both in which market structure the firms operate) Then choose one of the firms from one group. Using a Porter's analysis what are the threat to profitability?(Collusive Duopoly Model) There are two firmsproducing widgets. It costs the first firm q1 dollars to produceq1 widgets and the second firm 0.5q2 2 dollars to produce q2widgets. If a total of q widgets are produced, consumerswill pay $200 q for each widget. If the two manufacturerswant to collude in an attempt to maximize the sum of theirprofits, how many widgets should each company produce?Is below market is Oligopoly? Could you please draw a firm diagram to illustrate Foxtel’s business in 2021. Make sure to clearly and adequately label your diagram. Fast forward to the present day (October 2021), Australian consumers now have a wealth of choices of content offered by Foxtel, Netflix, Stan, Amazon Prime, Apple TV, Disney+, Optus Sport, and the recently launched Paramount+ (launched in August 2021).
- Only typed answer why is the pharmaceutical sector is an example of oligopoly.Only typed answer In a duopoly, each firm has marginal cost MC = 100, and market demand is Q = 500 - 0.5p. Assuming average cost is the same as marginal cost. In which oligopoly, Cournot or Stackelberg, do firms have more market power? a. Cournot since the Lerner Index in the Cournot model is twice as much as that in the Stackelberg model. b. Stackelberg since the Lerner Index in the Cournot model is twice as much as that in the Stackelberg model. c. Cournot since the Lerner Index in the Cournot model is about 1.08 times as much as that in the Stackelberg model. d. Stackelberg since the Lerner Index in the Cournot model is about 1.08 times as much as that in the Stackelberg model.Assume that Intel and AMD are Duopoly (Oligopoly) in the global computer CPU market: a) Analyze the price and quantity supplied behavior of Intel and AMD using the Stackelberg model. Pick a leader and follower and describe the firms' price, quantity behavior using words. DO NOT draw graphs. DO NOT do any calculations. b) Will the price and quantity of the firms in part a change if you use the Cournot model? Describe using words. Compare the profits of 2 firms in the oligopoly in Cournot and Stackelberg models using a graph of profit possibility frontier.
- As the Disney and Warner brothers are the examples of Oligopolistic industry so they must use game theory. As given in matrix below: Disney Warner Brothers Star Wars Pirates of the Caribbean The Matrix $100 $300 $80 $200 Superman $500 $50 $800 $300 Either of the company can one action movie or the other. Each value in dollars shows profits for respective movie version. a. If Disney choose Pirates of the Caribbean than which movie Warner Brothers will choose to dominate the market?Question 1 Assume the market for a product can be described as a Cournot duopoly with two identical firms. The Nash-equilibrium in this market is that the two firms produce the same quantity. Hence, they will have identical market shares, each will have 50%. Assume that firm 1 decides to invest in a technology that reduces its marginal costs. a) What will happen to the two firms market shares? You must explain how you find the answer. b) What will happen to total production and the price of the product? Again, explain your answer.Assume the market for a product can be described as a Cournot duopoly with two identical firms. The Nash-equilibrium in this market is that the two firms produce the same quantity. Hence, they will have identical market shares, each will have 50%. Assume that firm 1 decides to invest in a technology that reduces its marginal costs. a) What will happen to the two firms market shares? You must explain how you find the answer. b) What will happen to total production and the price of the product? Again, explain your answer.
- Chapter 14: Oligopoly 1 23.Explain how the outcome of the Cournot model is achieved. 24.An essential assumption of the Cournot model is that each firm aims to maximize profits, based on the expectation that its own output decision will not have an effect on the decisions of its rivals. Critically evaluate this assumption. 25.In choosing the optimal output, the monopolist had only to consider its own costs and the demand curve that it faced. How do things change under duopoly and what does the Cournot model argue about how firms will behave? 26.What is the output level predicted by the Cournot model? Discuss this in terms of the different market models that have been surveyed so far. 27.Evaluate the following statement. The Cournot model basically assumes that the sole decision of each firm in a duopoly is one of determining how much to produce not which price to set. 28.What is price leadership?As the Disney and Warner brothers are the examples of Oligopolistic industry so they must use game theory. As given in matrix below: Disney Warner Brothers Star Wars Pirates of the Caribbean The Matrix $100 $300 $80 $200 Superman $500 $50 $800 $300 Either of the company can one action movie or the other. Each value in dollars shows profits for respective movie version. a. With this perfect information which movie will respective company make?As the Disney and Warner brothers are the examples of Oligopolistic industry so they must use game theory. As given in matrix below: Disney Warner Brothers Star Wars Pirates of the Caribbean The Matrix $100 $300 $80 $200 Superman $500 $50 $800 $300 Either of the company can one action movie or the other. Each value in dollars shows profits for respective movie version. a. If Warner brother wants to make the movie about the matrix and Disney about the Pirates of the Caribbean how much profit will Disney get?
