consider a Bertrand competition in which there are two firms producing a homogenous product. the market DD is D(p) = 200-P firms charge price in Indian rupees in multiples of 5. MC = 25 for both the firms. identify mash equilibrium for the game

Duopoly: 1. Consider a duopoly game with 2 firms. The market inverse demand curve is given by P(Q) = 120-Q, where Q = 9₁ +9₂ and q; is the quantity produced by firm i. The firm's long run total costs are given by C₁(9₁)=2q₁ and C₂(92)=92, respectively. a. Determine the Nash Equilibrium for Cournot competition, in which firms compete based on quantity. What is each firm's best response as a function of the other firm's output? Graph these best response functions in on the same graph. Compute the associated payoffs for each firm. b. Determine the Nash Equilibrium for Bertrand competition, in which firms compete based on price and stand ready to meet market demand at that price. What is each firm's best response as a function of the other firm's price? Graph these best response functions in on the same graph. Compute the associated payoffs for each firm. Game Th

Suppose the airline industry consisted of only two firms: American and Texas Air Corp. Let the two firms have identical cost functions, C(q) - 40g Assume that the demand curve for the industry is given by P= 190 -Q and that each firm expects the other to behave as a Cournot compedtor. Calculate the Coumot-Nash equilibrium for each firm, assuming that each chooses the output level that maximizes as profes when taking its rival's output as given. What are the profits of each firm? (Round all quantities and dollar amounts to two decimal places) When competing, each firm will produce units of output. In tum, each firm will earn profit of $. What would be the equilibrium quantity if Texas Air had constant marginal and average costs of $10 and American had corntant marginal and average costs of S407 It Texas Air had constant marginal and average costs of $10 and American had constant marginal and average costs of S40, American would produceunits and Texas Air Corp. would produce units. In…

Consider a duopolistic market in which the two identical firms compete by selecting their quantities. The inverse market demand is P(Q) = 210−Q and each firm has a marginal cost of ​$15 per unit. Assume that fixed costs are negligible for both firms. Cournot Model Determine the​ Nash-Cournot equilibrium for this market.​(Enter your responses rounded to two decimal​ places.) Firm​ 1's quantity: q1= ? units. Firm​ 2's quantity: q2 = ? units.   Market​ price: P=​ ? Stackelberg Model Determine the​ Nash-Stackelberg equilibrium for this​ market, assuming that Firm 1 is the Stackelberg leader.  ​(Enter your responses rounded to two decimal​ places.) Firm​ 1's quantity: q1 = ? units Firm 2s​ quantity: q2 = ? units. Market​ price: P = ?​

Fill in the blanks: Consider the department store market that has two rivals, DJs and Myer. Each firm can choose to either Advertise or Not Advertise. These choices are made simultaneously. The payoffs are given below in the following figure.

Consider a Cournot duopoly. The inverse demand function of the market is given by p = 10-Q, where p is the market price, and Q = 91 +92 is the aggregate output. The marginal costs of the two firms are C₁ 1 and C₂ = 4. = (a) Solve for the Nash equilibrium of the game including firm out- puts, market price, aggregate output, and firm profits. (b) Now suppose these two firms play a 2-stage game. In stage 1, they produce capacities 9₁ and 92, which are equal to the Nash equilibrium quantities of the Cournot game characterised by part (a). In stage 2, they simultaneously decide on their prices p₁ and P2. The marginal cost for each firm to sell up to capacity is 0. It is impossible to sell more than capacity. The residual demand for 10 Piāj if Pi > Pj firm ij, is Di (Pi, Pj) = 10-Pi 2 = if pipi. (Note, if Pi < Pj 10 - Pi here we assume that the efficient/parallel rationing applies). Prove that it is a Nash equilibrium of the second stage subgame that each firm charges the market clearing…

where is the nash equilibrium? find out the dominant strategy. it was discovered that two domestic manufacturing companies were fixing prices. if each company is silent, there is no penalty, but production and business are disrupted due to continuous investigation by the Fair Trade Commission. The penalty for revealing the estimated loss due to the investigation and collusion is as follows:                                            Firm 2                             Silence                 Disclosure      Silence            -200, -200            -590, 0      Firm 1 Disclosure            0, -590                  -450, -450            fine( a hundred million won)

QUESTION 13 Consider a market where two firms (1 and 2) produce differentiated goods and compete in prices. The demand for firm 1 is given by D₁(P₁, P2) = 140 - 2p1 + P2 and demand for firm 2's product is D2 (P1, P2) 140 - 2p2 + P1 Both firms have a constant marginal cost of 20. What is the Nash equilibrium price of firm 1? (Only give a full number; if necessary, round to the lower integer; no dollar sign.)

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I have constructed a Bertrand game (competition in prices) and presented you with the reaction functions of each firm. P2 P1 = 12.5 + 4 P1 P2 == Use excel to draw the reaction functions. Solve for the Nash equilibrium + n IN