Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. economics
  3. use the following to answer questions 6-10: suppos

Use the following to answer questions 6-10: Suppose that firms 1, and 2 are Cournot duopolists...

50.1K

Verified Solution

Question

Economics

Use the following to answer questions 6-10:

Suppose that firms 1, and 2 are Cournot duopolists in the saltindustry. The market demand curve can be specified as Q=20-p,Q=q1+q2

(The firms choose their quantities simultaneously.)

The cost to firm 1 is C(q1)=1q1.

The cost to firm 2 is C(q2)=2q2.

6)   Find Firm 1 optimal production levels q1=?.

Select one:

a.
  0

b.
2

c.
  4

d.
6

e.
None of the above

7)    Find Firm 2 optimal production levelsq2=?.

Select one:

a.
0

b.
2

c.
  4

d.
6

e.
  None of the above

8)   Determine the equilibrium price? (p=?)

Select one:

a.
  0

b.
3

c.
  4

d.
  5

e. None of the above

9) Firm 1 will earn? (pi1=?)

Select one:

a.
  0

b.
  10

c.
  20

d.
  22

e.
  None of the above

10)   Firm 2 will earn? (pi2=?)

Select one:

a.
0

b.
10

c.
  20

d.
  22

e.
None of the above

Answer & Explanation Solved by verified expert
4.4 Ratings (762 Votes)
Q 20 pp 20 Q 20 q1 q2MC1 dC1dq1 1MC2 dC2dq2 2For firm 1TR1 p x q1 20q1 q12 q1q2MR1 TR1q1 20 2q1    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

You apply for a summer internship with a startup company, and your chance of getting an...

Physics
1.2K views

The intensity of electric field inside capacitor is E The work done to move a...

Geometry
1.2K views

Solve for the value of a 6a 1 2a 3

Geometry
1.2K views

Prove that if a surface ? is diffeomorphic to thetorus, then??KdA = 0.

Statistics
1.2K views

A study was conducted that resulted in the following relative frequency histogram Determine whether or...

Accounting
1.2K views

Exercise 5-2 Equivalent Units of Production-Weighted-Average Method [LO5-2] Clonex Labs, Inc., uses the...

Accounting
1.2K views

The balance sheet shows why cash increased or decreased O O True False

Accounting
1.2K views

You were hired as a consultant to ILOVEFINANCE Company, whose target capital structure is 40%...

Accounting
1.2K views

Discuss the advantages and disadvantages associated with entrepreneurial business ownership

Accounting
1.2K views

Tax rates are as follows: \table[[Social security,6.0%

Finance
1.2K views

explain why Texas should or should not adopt more progressive system of tax and describe...

Accounting
1.2K views

Which do you think is best to use? Negotiated transfer prices. Cost-based transfer prices. Market-based...