The inverse demand curve for sugar is p 100minusq there, Ask an Expert

Economics

The inverse demand curve for sugar is P = 100−Q. There are two firms, C and D, who produce sugar. Firms produce sugar using a technology with a cost function characterized by C(Qi) = 20Qi where Qi is the quantity produced by each firm. So, each firm marginal cost is equal to 20. Firms compete in prices and they make their price choices simultaneously (Bertrand competition). Firms can choose any price between 0 and ∞.

(a) What is the Bertrand-Nash equilibrium?

(b) Suppose firm D invests in a new technology and the cost function associated with this technology is characterized by C(QD) = 10QD. So, this technology allows firm D to reduce its marginal cost to 10. What is now the Bertrand-Nash equilibrium?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91422296

Have any Question?Write your Review or question?

Related Questions in Business Economics

It is often argued that regulation is justified in cases

It is often argued that regulation is justified in cases where some form of market failure would otherwise cause an inefficient allocation of resources. Can someone help me identify possible sources of market failure tha ...

Suppose an industry that has n1 2 firms each with a supply

Suppose an industry that has n1 = 2 firms each with a supply curve S1(p) = 2p-8, and n2 = 4 firms each with a supply curve S2(p) = p-2. Construct the industry supply curve and plot it on a graph.

Find each of the following probabilities for a normal

Find each of the following probabilities for a normal distribution. (Use/round to 4 decimal places.) p ( z > 0.80) p + p ( z Please work out the steps so I can understand the formula

If a low-income-undernutrition-low-income circle is

If a low-income-undernutrition-low-income circle is possible in poor countries, why is it not possible for some groups of people in rich countries? (hint: demand and supply)

How the manager use the information supposed the

How the Manager use the information "supposed the macroeconomic forecast predict that the economy will be expanding in the near future" in an organization?

This weekend martha has time to read 40pages of economics

This weekend, Martha has time to read 40pages of economics and 30pages of sociology. Alternatively, she could read 10pages of economics and 90pages of sociology. Which of these equations describes all combinations of pag ...

A video movie store owner finds that 30 of the customers

A video movie store owner finds that 30% of the customers entering the store ask an assistant for help and that 20% of the customers make a purchase before leaving. It is also found that 15% of all customers both ask for ...

Suppose another variable x is continuous and its pdf isfx

Suppose another variable X is continuous and its pdf is: f(x)= (x^3 + x^2 - 2/3x + .75) 0 For this question, you may take our word that f(x) is greater than or equal to zero for all values of x in the domain. Prove th ...

Indifference curve and budget lineannie has an income of

Indifference Curve and Budget Line Annie has an income of $180 an hour. Popcorn costs $6 a bag, and costs $4 a six-pack cola a. Draw a graph of Annie's budget line with six-pack of cola on the x-axis , and popcorn on th ...

Suppose a sports team did a study that showed that the

Suppose a sports team did a study that showed that the demand curve for tickets was perfectly inelastic at the capacity of building up to a price of $350 per ticket, at which point it becomes perfectly elastic. 1) Draw a ...

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

Recent Questions

Ask Business Economics Expert