(d) The market is organized perfectly competitively (point =P, HINT: p = MC(Q) where Q is the total level of output by the two firms and MC is the joint (multiplant) marginal cost in (c), i.e., the horizontal sum of the two firms’ marginal costs)(e) Utilizing the table , Compare/rank the CS across the 4 scenarios (that is; which one has the highest CS, which has the second highest... ).NO NEED TO CALCULATE or EXPLAIN ! PROBLEM Two firms (1 and 2) with total costs TC:(q) = 60q and TC:(q)=120q (hence the marginal costs areconstant at 60 and 120 respectively) are facing a market demand Q= 1200 - 2p.Analyzing each of the 4 scenarios below, fill in the table below;Market organizationQ= q1+q2 (total output)q1q2P (market price)C = CournotS = Stackelberg%DM = CollusionP = Perfect competition%3D

The Nash equilibrium for perfect competition is when the competitors charge maximum or more than…

PROBLEM Two firms (1 and 2) with total costs TC1(q) = 60q and TC:(q)=120q (hence the marginal costs are constant at 60 and 120 respectively) are facing a market demand Q= 1200 - 2p. Analyzing each of the 4 scenarios below, fill in the table below; Market organization %3D Q= q1+q2 (total output) q1 q2 P (market price) C = Cournot S = Stackelberg M = Collusion P = Perfect competition

PROBLEM Two firms (1 and 2) with total costs TC1(q) = 60q and TC:(q)=120q (hence the marginal costs are constant at 60 and 120 respectively) are facing a market demand Q= 1200 - 2p. Analyzing each of the 4 scenarios below, fill in the table below; Market organization %3D Q= q1+q2 (total output) q1 q2 P (market price) C = Cournot S = Stackelberg M = Collusion P = Perfect competition

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.5P

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