5. The market demand in a Bertrand duopoly is P = 10-3Q, and the marginal costs

Question

5. The market demand in a Bertrand duopoly is P = 10-3Q, and the marginal costs are $1. Fixed costs are zero for both firms. Which of the following statement(s) is/are true? A, P = $1. B. profits of Firm of Firm Two. C. producer's surplus of Firm One-producer's surplus of Firm Two. D all of the statements associated with this question are correct. 6. Two identical firms compete as a Cournot duopoly. The demand they face is P = 100-2(Q1+Q2. The cost function for each firm is Ci(a)s 4Q, i=1,2. The equilibrium output of each firm is: 16. C. 32. D: 36. 7. Two identical firms compete as a Cournot duopoly. The demand they face is P = 100-2(Q1+Q2 The cost function for each firm is G(Q,-4Q, i=1,2. Each firm earns equilibrium profit of: A $1,024. B. $2,048. C. $4,096. D $512. 8. Two firms compete as a Stackelberg duopoly. The demand they face is P 100-3(QtQ). The cost function for each firm is Ci(Q)-4Q, i=LF. The outputs of the two firms are: B.QL = 24, QF = 12. D. QL-20; QF = 15.

Explanation / Answer

Price will be $1.

each firm will sell 3 units of output.

P=10-3Q

3Q=10-P

3Q=10-1=9

Q=9.

Related Questions

Navigate

• Browse (All)
• Browse 5
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.