Subject : Microeconomic Question :

1. Show how Nash equilibrium can be achieved in the Cournot and Bertrand duopoly settings. Why are Bertrand and Cournot Duopolies so different?

2. Explain how the free-ridership problem in the provision of public goods can be modeled as a prisoners' dilemma game.

3. How can incumbent firms take strategic actions to deter potential entrants? Analyse the credibility of these actions.

Choose anyone of the question

Word count : 2200 words.