Please answer fast in both Two firms produce Bliffs. They compete by simultaneouslychoosing prices in a single period. The demand for Bliffs isgiven by P(Q) = 100-2Q where Q is market quantity and P ismarket price. Firm 1 has costs C1(q1) = 2091 and Firm 2 hascosts C2(q2) = 1092. Which statement is true?In the Nash equilibrium to the game, both firms play dominatedstrategiesO None of the other answers are correctO In the Nash equilibrium to the game, both firms play dominantstrategiesO In the Nash equilibrium to the game, both firms slowly lower pricestowards marginal costsO In the Nash equilibrium to the game, both firms set price equal tomarginal costConsider a firm that produces two commodities X and Y; thecost function is C(X,Y) where X and Y are respective quantities.In the light of subadditivity concepts which cost functionsjustify a natural monopoly?O CX,Y)=X+Y+XYO It is not possible to ascertain with the information provided.O C(X,Y)=X+Y+1O C(X,Y)=X+Y+XY/3O CX,Y)=X+Y

Monopoly is a market where by a single supplier dominates the whole market and duopoly is a market…

Two firms produce Bliffs. They compete by simultaneously choosing prices in a single period. The demand for Bliffs is given by P(Q) = 100-2Q where Q is market quantity and P is market price. Firm 1 has costs C1(q1) = 20q1 and Firm 2 has costs C2(q2) = 10q2. Which statement is true? %3D

Two firms produce Bliffs. They compete by simultaneously choosing prices in a single period. The demand for Bliffs is given by P(Q) = 100-2Q where Q is market quantity and P is market price. Firm 1 has costs C1(q1) = 20q1 and Firm 2 has costs C2(q2) = 10q2. Which statement is true? %3D

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter15: Imperfect Competition

Section: Chapter Questions

Problem 15.4P

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Concept explainers

Inflation and Purchasing Power Theory

In economic terms, Inflation refers to the increase in the costs of various commodities which are used in daily lifestyle like food, clothes, transport, etc. over a specific time. It may lead to a fall in the purchasing power of the people and also affects the exchange rate of the currency because of the price increase. As the purchasing power falls the unit of the currency in the economy falls. When the prices of the commodities are decreased, then the purchasing power of the consumers will rise, then it will lead to deflation and changes the currency of the base economy to that of the foreign economy which will lead to change in exchange rates.

Question

Please answer fast in both

Two firms produce Bliffs. They compete by simultaneously
choosing prices in a single period. The demand for Bliffs is
given by P(Q) = 100-2Q where Q is market quantity and P is
market price. Firm 1 has costs C1(q1) = 2091 and Firm 2 has
costs C2(q2) = 1092. Which statement is true?
In the Nash equilibrium to the game, both firms play dominated
strategies
O None of the other answers are correct
O In the Nash equilibrium to the game, both firms play dominant
strategies
O In the Nash equilibrium to the game, both firms slowly lower prices
towards marginal costs
O In the Nash equilibrium to the game, both firms set price equal to
marginal cost
Consider a firm that produces two commodities X and Y; the
cost function is C(X,Y) where X and Y are respective quantities.
In the light of subadditivity concepts which cost functions
justify a natural monopoly?
O CX,Y)=X+Y+XY
O It is not possible to ascertain with the information provided.
O C(X,Y)=X+Y+1
O C(X,Y)=X+Y+XY/3
O CX,Y)=X+Y

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