Assume that the market demand and cost functions of the duopolies are P=1000-0.5Q,where?
... Q=q1+q2TC1=6q1TC1=0.2q22.Given these answer the questions that followA.Determine Isoprofit function of Firm 1B.Determine Isoprofit function of Fi
... Q=q1+q2
TC1=6q1
TC1=0.2q22.Given these answer the questions that follow
A.Determine Isoprofit function of Firm 1
B.Determine Isoprofit function of Firm 2
C.Determine Reaction function of Firm 1
D.Compute Reaction function of Firm 2
E.Compute equilibrium output of each duopoly SHOW ALL THE STEPS CLEARLY
2 . Suppose that an industry consists of two firms that produce a homogeneous product.
Suppose that each firm decides how much to produce.the industry demand equation is
P=250-2Q, Q=Q1+Q2 Where Q1 and Q2 represents the output of Firm 1 and
Firm 2, respectively .the total cost equations of the tow firm are
TC1 = 2Q1
TC2 = 5Q2
A.calculate equilibrium price profit maximizing output levels and profits for each firm if firm is a sophisticated leader.
B. Calculate equilibrium price profit maximizing output levels and profits for each firm if these two firms agree to form a cartel maximizing their join profit.
C. Calculate equilibrium Price profit maximizing output level and profits for each firm if the low cost firm is selected as a price leader. SHOW ALL THE STEPS CLEARLY
or:... Q=q1+q2TC1=6q1TC1=0.2q22.Given these answer the questions that followA.Determine Isoprofit function of Firm 1B.Determine Isoprofit function of Firm 2C.Determine Reaction function of Firm 1D.Compute Reaction function of Firm 2E.Compute equilibrium output of each duopoly SHOW ALL THE STEPS CLEARLY2 . Suppose that an industry consists of two firms that produce a homogeneous product.Suppose that each firm decides how much to produce.the industry demand equation isP=250-2Q, Q=Q1+Q2 Where Q1 and Q2 represents the output of Firm 1 and Firm 2, respectively .the total cost equations of the tow firm areTC1 = 2Q1TC2 = 5Q2A.calculate equilibrium price profit maximizing output levels and profits for each firm if firm is a sophisticated leader.B. Calculate equilibrium price profit maximizing output levels and profits for each firm if these two firms agree to form a cartel maximizing their join profit.C. Calculate equilibrium Price profit maximizing output level and profits for each firm if the low cost firm is selected as a price leader. SHOW ALL THE STEPS CLEARLY
