The market demand curve is q 38 -p there are two firms, Ask an Expert

Economics

The market demand curve is Q = 38 -P. There are two firms: firm1 and firm 2. One has MC=2 and the other has MC= 5. They choose outputs simultaneously (the cournot model).

A) Find an equation for 1's reaction curve

B) Find an equation for 2's reaction curve

C) Plot both curves on a diagram with firm 1's output on the horizontal axis and firm 2's ouput on the vertical axis.

D) What output is chosen in equilibrium

E) Calculate dwl in the Cournot model

F) Show the reaction curves when one firm has MC=3 and the other MC=10

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91296149

Have any Question?Write your Review or question?

Related Questions in Business Economics

A researcher conducts a well-designed study to compare a

A researcher conducts a well-designed study to compare a sample mean to a known population mean and uses alpha=.05, two-tailed. She finds a z-test of 1.98, p-value=.048. What should she conclude? a. The 95% confidence in ...

You work in the quality control office for a company that

You work in the quality control office for a company that manufactures fluorescent light bulbs. Your company offers a 4-year (1461 day) warranty on these bulbs. The average life span of your bulbs is 1600 days with a sta ...

Assume the random variable x is normally distributed with a

Assume the random variable x is normally distributed with a mean u=80 and a standard deviation o=4. Find the indicated probability. P(69 P(69 Round to four decimals places as needed.

A sample of 1000 us households is taken and the average

A sample of 1,000 U.S. households is taken and the average amount of newspaper garbage or recycling is found to be 27.8 pounds. Assuming the standard deviation of newspaper for garbage or recycling is 2 pounds. Estimate, ...

A coffee machine dispenses coffee into 8-ounce cups it can

A coffee machine dispenses coffee into 8-ounce cups. It can be regulated so that it discharges an average of μ ounces per cup. Suppose the amount of coffee dispensed is normally distributed with standard deviation .2 oun ...

Why do households need to hold a mixture of bonds and money

Why do households need to hold a mixture of bonds and money? What determines the proportion of bonds/money that household keeps?

A single card is randomly drawn from one standard 52-card

A single card is randomly drawn from one standard 52-card deck of playing cards, and events C and D are as follows: C=the card drawn is a king; D-the card drawn is a heart. Find the probability of event C or event D occu ...

Suppose for the 3rd year in a row the harvest of wheat in

Suppose for the 3rd year in a row, the harvest of wheat in the US continues to decline. Imports are being used to make up the shortages in the US. In addition the US government decides to establish a price ceiling to hel ...

Define economies of scope is this concept related to

Define economies of scope. Is this concept related to economies of scale? Explain. Define economies of scale. How does this relate to returns to scale?

American heart association is about to conduct an

American Heart Association is about to conduct an anti-smoking campaign and wants to know the fraction of Americans over 33 who smoke. Step 1 of 2: Suppose a sample of 1179 Americans over 33 is drawn. Of these people, 27 ...

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