If two identical firms with marginal cost 5 and demand curve P=70-20 compete using the Cournot model, find price Select one Oa 4167. Ob 17 66 OC4 Od 194

Comatically save as you proceed through the test. Question 16 Please refer to the graph. In order to maximize profit this firm would charge what price? PAD MC B C E P2 A P₁ MR D 0 Q₁ Q₂ Q3 Quantity Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a P4 C P3 P2 d P1 ✓ Saved Search 7& * 4+ 144 σ с f10 114 Po f11 144 口 f12 ins prt sc delete ho = ← backspace

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3 In a Cournot market with two firms, the inverse market demand curve is P=50-2Q, where Q=q1+q2(Firm 1’s output is ; Firm 2’s output is ). Both firms have a constant marginal cost of 14. If Firm 2 produces 12 units of output, how much should Firm 1 produce? Group of answer choices 3 6 0 12

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Problem 2: Presently, APlus Transport and Big Movers are the only suppliers of services that haul heavy construction equipment between jobs within the Midwest. No other suppliers have the equipment necessary to perform the service. The market inverse demand for these hauling services is given below. P = 4,030-4Q where P is price per trip and Q is total number of trips per year. For simplicity, also assume that neither firm has fixed costs. From company records, you are given the following variable cost function for each firm: a. C. TVC = 300 TVCB = 80QB b. Calculate the Cournot market equilibrium price-output solutions for each firm including their respective profits. d. Assume these two competitors operate as a two-firm Cournot duopoly. Find the reaction functions for each firm. Suppose Big Movers shuts down operations so that APlus now has a monopoly in this market. What is the price, quantity, and profits for APlus after this change? Summarize the results of your findings over the…