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Home / Questions / Oligopoly The inverse demand curve for brimstone is given by pY 116 3Yvat Y total quannty...

Oligopoly The inverse demand curve for brimstone is given by pY 116 3Yvat Y total quannty of bnasstone measured

Oligopoly The inverse demand curve for brimstone is given by p(Y) =116 — 3Y (vat. Y total quannty of bnasstone, measured m the conventional wits) and the cent rumen for any ram m Ike Industry is given by TC(y)= By (with y the output of the firm)_ a_ Determme the Industry output and mice Ifthe brimstone industry were perfectly competitive. b Suppose that two Cournot firms operated m the market (Fula I and Firm 2) Determine the reaction fimchon of Erm 1_ Do the same for rum 2 Determine mdustryoutput, the output of each firm, and the market price Sot rums are operatmg at the Comm egularnun prom c What vall be the md•stry output and the market trace dboth firms decide to collude d Suppose both of the colluding firms are producum equal amounts of output_ If one of the colluding firms assumes that the other firm would not react to a change m the mdustry output, what would happen. a firm's oval profits drt mcreased Its output by one umf, e Cons.. the profit maim of the collusion game where rams can take two actrons: (1)_ Producing the Comlot output from b. (2)_ Producing the half of the Industry output lac. f Detemune the best response ofruml to the actions of Fam 2 g GIve the Nash equMbnum of the profit matrix from the collusion game m e k Suppose rum 1 ads as a Stackelberg leader and rum 2 behaves as a follower_ Write down mamm.non problem for the leader Solve the problem give the output levels of the leader and the follower, the Industry output, and the market price

May 01 2020 View more View Less

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