4. Cournot Duopoly A market is defined by: P(Q) = a – Q where market price is a function of aggregate quantity. There is also a constant cost per unit of c. a) Show profit (π) of a monopoly in terms of Q. b) Assume there are 3 firms that wish to collude. What would their profit function be in terms of qi c) Assume the market is perfectly competitive. What would be a firm's profit function be in terms of qi? Remember this game is symmetrical. c) Assume one firm wishes to back-stab the others and produce market quantity for one round. What would their profit function be in terms of q1, 92, and 93? d) Assume two of the three firms back-stab while one sucker still tried to collude. What would the sucker's profit function be in terms of 91, 92, and 93?

Consider the following two industries the yogurt and automobile industry. Which industry would fit best into the category of monopolistic competition?  Make sure you relate the most relevant economic concepts and theory to justify arguments.

1. Consider a Cournot duopoly with the inverse demand P = 260 - 2Q. Two firms compete choosing their quantities. Both firms have constant. marginal and average cost MC = AC = 20. a. Find each firm's best response function. b. Find the Cournot equilibrium. c. Plot the best response curves and illustrate the equilibrium point.

not use ai please

MONOPOLISTIC COMPETITION 1. Suppose that the cost of production is given by the following function: CT = 100 + Q2 and that the demand is given by P = 80 - Q. a. Determine the level of maximization.b. Determine the value of CT and ITc. Check that the IMg = CMg CT (Total cost) IMg (marginal income) CMg (marginal cost) Algebraically if the demand curve in the monopoly is a function of quantity, the demand curve is a straight line. P = a - bQWhere a is the ordinate to the origin, b the slope and Q the quantitySo if IT = P x QWe have that (a - bQ) Q = aQ - bQ2IT = aQ - bQ2And therefore the marginal income is the derivative of IT or what is equal to the variation of total income between the variation of the quantity.Therefore the IMg = derive the quantity in the function aQ - bQ2IMg = a - 2bQ Consider these functions when conducting monopoly exercises.

Consider the following scenario in a duopoly with homogeneous products: Marginal cost: $21 Market demand: 972 units Competitor's price: $41 Your price: $44 Assuming your competitor maintained their price, what would be your pricing response, and how many units would you expect to sell at that new price? (Enter dollar amounts to the nearest penny and units to the nearest whole number.) Pricing response: Sales: $ units

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5. Two duopolistic oil producers are faced with the total demand function of P = 180– Q and the following cost functions: MC1 = 30 + Q1 MC2 = 20 + 2Q2 a. Determine the optimal levels of output, using the Cournot solution. b. What are the optimal outputs, if the two firms form a cartel