Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Economics Expert

Given the demand function of the oligopoly firm, determine the Cournot - Nash equilibrium outputs.

Consider an Oligopoly in which the inverse demand function p ( N on top) Σ (I = 1 below) Xi on the right side) = a - b ( N on top) Σ (I = 1 below) Xi on the right side), a, ,b, > 0 and each firms costs c(xi) = cxi, 0 < c < a. First, given n, describe the cournot-nash equilibrium outputs, benifits, deviation of price from the marginal cost and deadweight loss, then prove that all of these approach zero asymptotically as N tends towards infinity. Comment on the significance of this result.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M918278

Have any Question? 


Related Questions in Business Economics

Banks and savings and loans were allowed to issue now

Banks and savings and loans were allowed to issue NOW accounts nationwide in 1981. An unexpected result was that the relationship between the growth of M1 and GDP broke down. The reason was that customers of depository i ...

Consider a single monopoly that faces a market demand curve

Consider a single monopoly that faces a market demand curve for a good is given by the equation P=100-.1Q and the total cost function is given as TC=1000+20Q-.4Q(^)(2). What is the total fixed cost for this monopoly?

Each year since winning control of the house of

Each year since winning control of the House of Representatives in the 2010 election, Tea Party Republicans have argued that we need to immediately initiate sharp reductions in government spending and entitlement program ...

A stocks price is 100 at the beginning of a year there is a

A stock's price is $100 at the beginning of a year. There is a 25 percent chance that the price will be $90 at the end of the year, and a 75 percent chance that the price will be $130 at the end of the year. The stock wi ...

Business economic question1 explain how competitive

Business economic question 1. Explain how competitive privately issued currencies would work automatically to provide consumers with protection against inflation? 2. Would interest exist in a pure exchange economy where ...

In an article titled gas prices dropping after last weeks

In an article titled, Gas prices dropping after last week's spike, that was published in The Atlanta Journal-Constitution newspaper on August 29, 2011, Mike Morris wrote: "After a spike last week as Hurricane Irene threa ...

1 norwood corp currently has accounts receivable of 1406000

1) Norwood Corp. currently has accounts receivable of $1,406,000 on net sales of $5,312,000. What are its accounts receivable turnover ratio and days’ sales outstanding (DSO)? 2) Laurel Electronics has a quick ratio of 1 ...

After reading the article usa comes up a bit short in

After reading the article U.S.A comes up a bit short in global Better Life Index and comparing the relative ranking of U.S. GDP to other countries, what is the link between wealth and well-being? Do governments have a re ...

In 2014 chesterfield industries had sales of 1200000 the

In 2014, Chesterfield Industries had sales of $1,200,000. The company had operating expenses (including depreciation) of $540,000, depreciation expense of $82,000 and interest expense of $54,000. Cost of goods sold was $ ...

Consider the market for taxi service in washington dc use

Consider the market for taxi service in Washington, DC. Use demand-supply analysis to explain the effects (i.e., increase or decrease) on the equilibrium price and quantity from the following (you may consider each case ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate