Oligopoly The Inverse Demand Curve For Brimstone Is Given By P Y 116 3y Vat Y Total 3345930

Oligopoly The inverse demand curve for brimstone is given by p(Y) =116 — 3Y (vat. Y total quannty of bnasstone, measured m the conventional wits) and the cent rumen for any ram m Ike Industry is given by TC(y)= By (with y the output of the firm)_ a_ Determme the Industry output and mice Ifthe brimstone industry were perfectly competitive. b Suppose that two Cournot firms operated m the market (Fula I and Firm 2) Determine the reaction fimchon of Erm 1_ Do the same for rum 2 Determine mdustryoutput, the output of each firm, and the market price Sot rums are operatmg at the Comm egularnun prom c What vall be the md•stry output and the market trace dboth firms decide to collude d Suppose both of the colluding firms are producum equal amounts of output_ If one of the colluding firms assumes that the other firm would not react to a change m the mdustry output, what would happen. a firm’s oval profits drt mcreased Its output by one umf, e Cons.. the profit maim of the collusion game where rams can take two actrons: (1)_ Producing the Comlot output from b. (2)_ Producing the half of the Industry output lac. f Detemune the best response ofruml to the actions of Fam 2 g GIve the Nash equMbnum of the profit matrix from the collusion game m e k Suppose rum 1 ads as a Stackelberg leader and rum 2 behaves as a follower_ Write down mamm.non problem for the leader Solve the problem give the output levels of the leader and the follower, the Industry output, and the market price

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