The following question relate to an oligopoly market where the industry demand curve is P = 100 - Q
What will be the price and quantity of this duopoly market if the duopolists act as shared monopolists?
62.The following question relate to an oligopoly market where the industry demand curve is P = 100 - Q
If firm 1 is a Stackelberg leader and firm 2 is a follower, what will each firm produce?
63.The following question relate to an oligopoly market where the industry demand curve is P = 100 - Q
What price will the two Stackelberg firms charge?
64.The following question relate to an oligopoly market where the industry demand curve is P = 100 - Q
Compare the models analysed here with reference to the consumer and economic efficiency.
65.Consider competition between British Airways and KLM. If both cut prices they each make profit €100 million. If both leave prices unchanged they make profit €400 million. If one firm cuts prices and the other does not then the firm that cut prices makes profit €600 million and the firm that kept prices high makes profit €50 million. Does either airline have a dominant strategy? Explain and discuss.
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