Economics

posted by .

Two identical firms compete as a Cournot duopoly. The demand they face is P = 100 - 2Q. The cost function for each firm is C(Q) = 4Q. The equilibrium output of each firm is:

A. 8
B. 16
C. 32
D. 36

  • Economics -

    16

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Microeconomics

    ok so i must have not payed attention in class when we talked about asymmetric costs in cournot duopoly's, so i am stuck on a homework problem. The problem reads as follows (*Note that my notation of c simply means Marginal Cost): …
  2. managerial economics

    Suppose the inverse market demand equation is P = 80 ¡V 4(QA+QB), where QA is the output of firm A and QB is the output of firm B, and both firms have a constant marginal constant of $4. Firm B is the Stackelberg leader in this market. …
  3. managerial economics

    Suppose the inverse market demand equation is P = 80 ¡V 4(QA+QB), where QA is the output of firm A and QB is the output of firm B, and both firms have a constant marginal constant of $4. (a)Write down the Bertrand equilibrium prices …
  4. managerial economicsQ3

    Suppose the inverse market demand equation is P = 80 ¡V 4(QA+QB), where QA is the output of firm A and QB is the output of firm B, and both firms have a constant marginal cost of $4 (fixed costs are zero). (a)Write down the profit …
  5. managerial economicsQ4

    Consider a Cournot duopoly, composed of firms A & B ¡V which produce identical products and face identical costs. (a) Draw a set of reaction functions in one diagram for this Cournot duopoly. (b) Label the monopoly outputs that would …
  6. Economics

    Two firms compete as a Stackelberg duopoly. The inverse market demand they face is P = 62 - 4.5Q. The cost function for each firm is C(Q) = 8Q. The outputs of the two firms are: A. QL = 48; QF = 24. B. QL = 35; QF = 6. C. QL = 6; QF …
  7. Economics

    There are 10 identical consumers whose demand is D: p = 20 - 10q. There are 10 identical firms, each firm's marginal cost is MC(q)= 5 + 5q. The market is competitive. a) derive the market demand function b) derive the market supply …
  8. Economics

    An industry has only two firms producing outputs y1 and y2, respectively. The first firm has a cost function of TC(y1) = 20 + 20y1 and the second has a cost function TC(y2) = 10 + 5y2 + y22. The demand function for the product these …
  9. Economics

    An industry has only two firms producing outputs y1 and y2, respectively. The first firm has a cost function of TC(y1) = 20 + 20y1 and the second has a cost function TC(y2) = 10 + 5y2 + y22. The demand function for the product these …
  10. Economics

    Two firms produce the same good and compete against each other in a Cournot market. The market demand for their product is P = 204 - 4Q, and each firm has a constant marginal cost of $12 per unit. MR1 = 204 - 8q1 - 4q2. Let q1 be the …

More Similar Questions