Suppose the inverse demand function for two Cournot dupolists is given by P= 10 – (Q1+Q2) and their cost are zero. a) What is each firm marginal revenue? b) What are the reaction function for the two firms c) What are the Cournot equilibrium output d) What is the equilibrium price?

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A: Given Demand function Q=100-P P=100-Q MC=$0.80

Q: Suppose the inverse demand function for two Cournot duopolists is given by P = 10 −(Q1+ Q2)…

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A: Given, PF = 100-qF+ -0.5qp => qF = 100-PF+ 0.5

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A: P = 90 - 2Q P = 90 - 2(q1+q2) where Q = q1+q2 MC = 40 per unit

Q: Determine each firm’s revenue function. b) Determine the reaction function for each firm. c)…

A:

Q: The market demand in a homogeneous-product Cournot duopoly is P = 100 - 2Q, where Q=Q1+Q2 (Firm 1…

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Q: Suppose the inverse demand function for two Cournot duopolists is given by P = 10 – (Q1 + Q2) and…

A: a.   According to the question, Cournot duopolist have demand for P = 10 –(Q1 + Q2)With MC1=MC2 =…

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A: P=50-Q    =50-Q1-Q2TR1=(50-Q1-Q2)Q1     =50Q1-Q12-Q1Q2MR1=50-2Q1-Q2C=10+Q2MC1=2Q1Now, for…

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Q: The market demand in a homogeneous-product Cournot duopoly is P = 100 - 2Q, where Q = Q1 + Q2 (Firm…

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Q: QUESTION 6 Consider a Cournot duopoly with the following inverse demand function: P = 120 - Q1 - Q2,…

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Q: Consider the following Stackelberg duopoly. Both firms produce differentiated goods. For form 1, the…

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Q: A homogeneous product duopoly faces a market demand function given by p = 300 - 3Q,where Q = q1 +…

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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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Q: Suppose the inverse demand function for two Cournot duopolists is given by P = 10 − ( Q 1 + Q 2 )…

A: Inverse demand function:  P = 10−(Q1+Q2)

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