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 output produced by firm i, where i = 1,2.

1. Firm 1's reaction function is:
2. In the Cournot equilibrium for this market, each firm will produce ____ unites of output, and the market price will be___.
3. Each firm will earn a profit of ___.

  1. 👍
  2. 👎
  3. 👁
  1. Q1=25.5-0.5Q2

    1. 👍
    2. 👎
  2. "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"

    1. 👍
    2. 👎

Respond to this Question

First Name

Your Response

Similar Questions

  1. economics

    Suppose the market demand for good A given by Qd= 300 -20 P and the market supply for Good A is given by Qs=20P-100,where P=price of Good A. Q;Graph the supply and demand schedules for Good A using P5 through P15 as the value of

  2. Economics

    10. An industry currently has 100 firms, all of which have fixed cost of $16 and average variable cost as follows: Quantity / Average variable cost: (1/$1),(2,$2), (3,$3), (4,$4), (5,$5), and (6,$6) b. The price is currently $10.

  3. microeconomics

    32. Firm X is a typical firm in a market characterized by the model of monopolistic competition. Suppose that the market is initially in long-run equilibrium, and then there is an increase in demand for services. We can assume

  4. Economics

    The circular flow of economic activity can be summed up as: A. households earn money by selling their factors of production to firms in the factor market and use that money to buy goods and services from firms in the product

  1. Economics

    1. Your roommate's long hours in chem lab finally paid off--she discovered a secret formula that lets people do an hour's worth of studying in 5 minutes. So far, she's sold 200 doses and faces the following average-total-cost

  2. economy

    consider a perfectly competitive market in which all firms have the same costs. choose the statement that is incorrect a)the market demand is elastic at the market price b)each firm takes the market price as given and produces its

  3. econ

    Suppose there are 1000 identical firms producing diamonds. Diamond miners receive the wage rate w. Assume that the short-run cost function for each diamond-producing firm is C(q) = wq + q2. a. If w = 10, what is the supply curve

  4. Need help Reviewing Managerial Economics

    just need help in reviewing my answers...they are all true/false questions..THANKS!!! 1. A principal-agent problem occurs when managerial decisions are inconsistent with the firm’s revenue maximizing objective. False 2. A firm

  1. maths

    Allen Young has always been proud of his personal investment strategies and has done very well over the past several years. He invests primarily in the stock market. Over the past several months, however, Allen has become very

  2. Economics

    How does a laissez faire economy make the decision about what goods and services will be produced? a.) Lawmakers in government vote on what will be produced b.) Producing firms decide what they choose to produce, cusumers will

  3. Economics

    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

  4. 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;

You can view more similar questions or ask a new question.