HomeworkLib
Question

Market demand is P=100-Q1-Q2. Q1 is output of Samsung and Q2 is output of LG. Marginal...

Market demand is P=100-Q1-Q2. Q1 is output of Samsung and Q2 is output of LG. Marginal cost of each firm is $10.

(a) What is Samsung’s profit maximization output when LG produce 50 units?

(b) What is Samsung’s profit maximization output when LG produces any arbitrary output Q2?

(c) What is Cournot equilibrium quantities and price?

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
Market demand is P=100-Q1-Q2. Q1 is output of Samsung and Q2 is output of LG. Marginal...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Duopoly quantity-setting firms face the market demand p=210-Q. Each firm has a marginal cost of $15...

    Duopoly quantity-setting firms face the market demand p=210-Q. Each firm has a marginal cost of $15 per unit. What is the Cournot equilibrium? The Cournot Equilibrium quantities for Firm 1 (q1) and Firm 2 (q2) are: q1= __ units and q2 =__ units . (Enter numeric responses using real numbers rounded to two decimal places.) The Cournot equilibrium price is p=$__ (two decimal places)

  • The market demand function is Q = 10000 - 1000p Each firm has a marginal cost...

    The market demand function is Q = 10000 - 1000p Each firm has a marginal cost of m=​$0.28. Firm​ 1, the​ leader, acts before Firm​ 2, the follower. Solve for the​ Stackelberg-Nash equilibrium​ quantities, prices, and profits. Compare your solution to the​ Cournot-Nash equilibrium. The​ Stackelberg-Nash equilibrium quantities are q1 = ____ units and q2= ____ units.  ​(Enter your responses as whole​ numbers.) The Stackelberg-Nash equilibrium price is: p=$_____________ Profits for the firms are profit1=$_______________ and profit2=$_______________ The Cournot-Nash equilibrium...

  • A duopoly faces a market demand of p 180-Q. Firm 1 has a constant marginal cost...

    A duopoly faces a market demand of p 180-Q. Firm 1 has a constant marginal cost of Mc1 -S20. Firm 2s constant marginal cost is MC2 $40. Calculate the output of each firm, market output, and price if there is (a) a collusive equilibrium or (b) a Cournot equilibrium The collusive equilibrium occurs where q, equals and q2 equals (Enter numeric responses using real numbers rounded to two decimal places) Market output is The collusive equilibrium price is S The...

  • A homogeneous products duopoly faces a market demand function given by P a - Q, where...

    A homogeneous products duopoly faces a market demand function given by P a - Q, where QQ Q2 and a>300. Both firms have constant marginal costs MC-100. There are no fixed costs. a) What is firm 1's optimal quantity given that firm 2 produces an output of 50 units per year? And what is firm's 1 quantity if firm 2 produces 20 units? [4 marks] b) Derive the equation of each firm's reaction function and provide a graphical explanation to...

  • Suppose there are two firms, 1 and 2, competing in quantity. The market demand is p...

    Suppose there are two firms, 1 and 2, competing in quantity. The market demand is p = 15-(q1 +q2), where q1 and q2 are the quantities produced by rms 1 and 2. Both rms have constant marginal cost c1 = c2 = 3. (a) [10] Find the Cournot equilibrium of this market. Compute the consumer surplus in equilibrium. b) Now suppose firms 1 and 2 merge, so that they become a monopolist with demand function p = 15 ? q,...

  • Joint profit maximizing output and Cournot model Consider two firms facing the demand curve P=75-5C, where...

    Joint profit maximizing output and Cournot model Consider two firms facing the demand curve P=75-5C, where Q Q1 +Q2. The firms' cost functions are Cl (Q1) = 15 +10Q1 and C2 (Q2)-10 + 20Q2. Suppose that both firms have entered the industry. What is the joint profit-maximizing level of output? How much will each firm produce? Combined, the firms will produce units of output, of which Firm 1 will produce units and Firm 2 will produceunits. (Enter a numeric response...

  • Duopoly quantity-setting firms face the market demand p 270-Q Each firm has a marginal cost of...

    Duopoly quantity-setting firms face the market demand p 270-Q Each firm has a marginal cost of $15 per unit What is the Coumot equilibrium? The Cournot equilibrium quantities for Firm 1 (q1) and Firm 2 (42) are -85 units 02- 85units. (Enter numeric responses using real numbers rounded to two decimal places.) 10 and PM The Cournot equilbrium price is he Counot equilibrium? mot equilibrium quantities for Firm 1 (91) and Firm 2 (42) are 1 85 units 2 85...

  • Demand in a market dominated by two firms (a Cournot duopoly) is determined according to: P...

    Demand in a market dominated by two firms (a Cournot duopoly) is determined according to: P = 300 – 4(Q1 + Q2), where P is the market price, Q1 is the quantity demanded by Firm 1, and Q2 is the quantity demanded by Firm 2. The marginal cost and average cost for each firm is constant; AC=MC = $74. The cournot-duopoly equilibrium profit for each firm is

  • Demand in a market dominated by two firms (a Cournot duopoly) is determined according to: P...

    Demand in a market dominated by two firms (a Cournot duopoly) is determined according to: P = 200 – 2(Q1 + Q2), where P is the market price, Q1 is the quantity demanded by Firm 1, and Q2 is the quantity demanded by Firm 2. The marginal cost and average cost for each firm is constant; AC=MC = $68. The cournot-duopoly equilibrium profit for each firm is

  • Demand in a market dominated by two firms (a Cournot duopoly) is determined according to: P...

    Demand in a market dominated by two firms (a Cournot duopoly) is determined according to: P = 300 – 4(Q1 + Q2), where P is the market price, Q1 is the quantity demanded by Firm 1, and Q2 is the quantity demanded by Firm 2. The marginal cost and average cost for each firm is constant; AC=MC = $71. The cournot-duopoly equilibrium profit for each firm is _____. Hint: Write your answer to two decimal places.

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT