06 nash equilibrium dating and cournot mov

13-Feb-2016 03:57 by 8 Comments

06 nash equilibrium dating and cournot mov

As a result of Firm 2's marginal cost rising to $40, the market price V will rise to the monopoly level because Firm 2 will not produce.will not rise to the monopoly level because one firm can produce at lower cost than multiple firms.

the leader can sell its output before the firm that moves second produces. They choose their output levels Q] and Q2 simultaneously and face the demand curve: P=80—Q, where Q = Q1 Q2. Recent environmental regulations have increased Firm 2's marginal cost to . True or false: As a result, the market price will rise to the monopoly level.

the product made by the market has substitutes but the products made by firms within the market do not. (i.e., Why don't firms have any incentive to change their output levels once in equilibrium?

Suppose a monopolistically competitive firm is making a profit in the short run. ) At the Cournot equilibrium, firms have no incentive to change their output levels because each firm is earning zero economic profits, which is a normal rate of return.

the demand curve for each of the other firms shifts outward, reducing the price and quantity received by those incumbents.

Page 1 Date: 4/21/15 Time: PM Assignment: Homework l O Instructor: Lingwen Huang Course: Econ 351--2015 Spring Book: Pindyck/Rubinfeld: Microeconomics, 8e 2_ Why is the firm's demand curve flatter than the total market demand curve in monopolistic competition?

(For all of the following, enter a numeric response rounded to two decimal places.) When competing, each firm will produce 80 units of output. Suppose the two firms form a cartel to maximize joint profits. Total output is Q = 90 units The market price is P = $ 145 .

Profit for the firms is TIE = $ 3037.5 and 11D = $ 3037.5 .each firm is producing at minimum long run average cost.each firm is producing the amount that maximizes its revenue regardless of what its competitors are producing.Their costs are given by C1 = 60Q1 and C2 = 60Q2, where Q] is the output of Firm l and 02 is the output of Firm 2. Unable to recognize the potential for collusion, the two firms act as short-run perfect competitors. (Enter numeric responses rounded to two decimal places). Top management in both firms is replaced Each new manager independently recognizes the oligopolistic nature of the light bulb industry and plays Cournot.Price is determined by the following demand curve: P=300-Q where Q = Ql Q2. Calculate the profit of each firm at this equilibrium. What are the equilibrium Page 7 Student:_ Instructor: Lingwen Huang Assignment: Homework 10 Date: 4121/ 15 Course: Econ 351--2015 Spring Time: PM Book: Pindyck/Rubinfeld: Microeconomics, 8e 10_ values of QE, OD, and P? (cont) Everglow's equilibrium output is QE = 45 units and Dimlit's equilibrium output is QD = 45 units.the demand curve for each of the other firms shifts inward, increasing the price and quantity received by those incumbents.