subject
Business, 14.12.2019 04:31 christian2510

Suppose that two identical firms produce widgets and that they are the only firms in the market. their costs are given by c1 = 60q1 and c2 = 60q2, where q1 is the output of firm 1 and q2 the output of firm 2. price is determined by the following demand curve:
p = 300 – q
where q = q1 + q2.

a. find the cournot-nash equilibrium. calculate the profit of each firm at this equilibrium.
b. suppose the two firms form a cartel to maximize joint profits. how many widgets will be produced? calculate each firm’s profit.
c. suppose firm 1 were the only firm in the industry. how would market output and firm 1’s profit differ from that found in part (b) above?
d. returning to the duopoly of part (b), suppose firm 1 abides by the agreement, but firm 2 cheats by increasing production. how many widgets will firm 2 produce? what will be each firm’s profits?

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 18:30
How is the division of labor accomplished?
Answers: 1
question
Business, 22.06.2019 00:30
Adds up the money earned by producers plus taxes paid to the goverment. a) income approach b) product approach c) expenditure approach
Answers: 3
question
Business, 22.06.2019 02:30
Acompany factory is considered which type of resource a.land b.physical capital c.labor d.human capital
Answers: 2
question
Business, 22.06.2019 08:30
Hi inr 2002 class! i just uploaded a detailed study guide for this class. you can check-out a free preview by following the link below feel free to reach-out to me if you need a study buddy or have any questions. goodluck!
Answers: 1
You know the right answer?
Suppose that two identical firms produce widgets and that they are the only firms in the market. the...
Questions
question
Advanced Placement (AP), 30.10.2019 07:31
question
History, 30.10.2019 07:31
question
Mathematics, 30.10.2019 07:31
question
Mathematics, 30.10.2019 07:31
question
Mathematics, 30.10.2019 07:31
Questions on the website: 13722360