Please help with these two: 1. Consider a Duopoly model, in which two firms decide a quantity simultaneously. If they collude (setting the total quantity together), then each firm can earn (higher, or lower) profit than in the Cournot equilibrium. 2. Consider a collusion with two firms. The joint profit is maximized by setting quantity and price together. Each firm sells the agreed amount. However, believing that the other firm sells the agreed amount, there is always a temptation for the firm sell (more, or less) than the agreed amount.

Q: Assume that two firms, Wilson and Spalding, can manufacture basketballs for the entire Norfolk…

A: Demand function: Here, The cost function is given as;Wilson is firm 1 and Norfolk is firm 2.

Q: Consider the following Stackelberg duopoly. Both firms produce a homogenous good. Firm 1 chooses how…

A: An oligopoly is a market structure in which a small number of firms dominating the market. The…

Q: Now, assume your buffalo wing firm is in a Cournot oligopoly with 3 additional firms. The market…

A: Relationship between individual's elasticity of demand and market elasticity of demand.  EF = N * EM…

Q: The following problem is a mixture of a Cournot/Bertrand duopoly Assume the following demand…

A: The Cournot model sheds light on the strategic interactions between businesses in quantity rivalry.…

Q: Solve for the Bertrand equilibrium for the firms described in Problem 32 if both firms have a…

A: Bertrand equilibrium is an economic game theory concept where firms engage in price competition,…

Q: Consider a oligopoly with two firms. Each firm has constant marginal cost of 3 dollar per unit and…

A: Nash equilibrium is the combination of outputs produced by both the firms where each firm has no…

Q: The market demand curve faced by Stackelerg duopolies is: Qd = 12,000 - 5P where Qd is the market…

A: Market demand = 12000 – 5P 5P = 12000 – Q d And Q d = qA + qB 5 P = 12000 – qA – qB P = 2400 – 0.2qA…

Q: For each of these two scenarios, answer the following questions: (a) Should we use the Cournot model…

A: Cournot's competition is the one in which the firms simultaneously decide the output to be produced…

Q: Two firms produce and sell differentiated products that are substitutes for each other. Their demand…

A: The e­quilibrium price represents the point where the quantity of a good that consumers are willing…

Q: Question 1: Suppose Southwest (S) and JetBlue (J) choose a number of flights, and qj respectively,…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: There is a duopoly in the market, with Firm A and Firm B considering whether to compete against each…

A: In economics, the market is divided into four types on the basis of the degree of competition among…

Q: Suppose we have the "classic" Cournot duopoly model, with a linear demand curve P = a - bQ And two…

A:

Q: Consider two oligopolistic firms (Firm 1 and Firm 2) in a price-setting duopoly. Both firms have no…

A: profit maximization is the short run or long run process by which a firm may determine the price,…

Q: 1. How cultural differences impact international business? 2. Describe the types of economic…

A: Since you have posted multiple questions, we will solve the first answer for you. If you want any…

Q: Oligopoly: Quantity Competition 1. Consider two duopolists who each have a constant marginal cost c1…

A: Cournot model determines the quantity of the two firms (duopoly) simultaneously and not depending on…

Q: (1) Suppose that two identical firms produce widgets and that they are the only firm in the market.…

A: The Cournot-Nash equilibrium is a solution concept in game theory that depicts the outcome of a…

Q: The managers of these firms realize that explicit agreements to collude are illegal.Each firm must…

A: Payoff Matrix:Firm B's StrategyFirm A's StrategyCournot Quantity (Qc)(A_Qc, B_Qc)Cartel Quantity…

Q: Two firms compete in a single market (duopoly) with demand given by Qp=60-P. The two firms have…

A: Given information:  Qd = 60 - P  C(q) = 2q In the Bertrand model, firms competes on the basis of…

Q: Perrier and Apollinaris. Perrier and Apollinaris are two companies that sell mineral water in Tampa,…

A: Given: Fixed cost for each company = $5000/period Available set of prices = $2(high) and $1(low) At…

Q: Suppose that there are two firms producing a homogenous product and competing in Cournot fashion and…

A: please find the answer below.

Q: Consider a Cournot oligopoly with n = 2 firms. Firm 1 cost function is TC₁ (9₁) = 20 + 12q₁ + q²,…

A: Given functions P=50-2Q TC1=20+12q+q12 TC2=50+8q2+q22 To find the Cournot equilibrium, it is…

Q: owing market is a duopoly populated only by the companies Alpha and Beta. They produce and sell…

A: Duopoly is a special form of the oligopoly market where only two firms exist in the market. The…

Q: Two firms are competing in a Bertrand setting. The demand and costs equations are: Q1 = 88–4P1+2P2,…

A: Demand function for firm 1 :  Q1 =88–4P1+2P2 Demand function for firm 2 : Q2 = 88–4P2+2P1 MC 1 = 9…

Q: Suppose that two firms produce mountain spring water and the market demand for mountain spring water…

A: A firm maximizes its profit by producing at the output level where MC equals MR

Q: The firms in a duopoly produce differentiated products. The inverse demand for Firm 1 is P1 = 112 -…

A: b p1=112-q1-0.5q2p2=130-q2-0.5q1TR1=(112-q1-0.5q2)q1      =112q1-q12-0.5q1q2MR1=112-2q1-0.5q1…

Q: Suppose that identical duopoly firms have constant marginal costs of $10 per unit. Firm 1 faces a…

A: The Bertrand model of oligopoly is a non-collusive oligopoly model that has two or more firms…

Q: Two firms produce and sell differentiated products that are substitutes for each other. Their demand…

A: Given the information: Firm 1: Q1=40-3P1+P2Firm 2: Q2=40-3P2+P1MC = $2.30

Q: Consider two firms, referred to as firms 1 and 2, who compete in a market by choosing quantities…

A: Demand function : P (Q) =  10 - 2Q Marginal Cost of each firm = 4 Number of firms in the market is 2…

Q: uppose the airline industry consisted of only two firms: American and Texas Air Corp. Let the two…

A: Marginal revenue (MR) is the increment in revenue that outcomes from the offer of one extra unit of…

Q: If Gulfstream and Bombardier, both producers of upscale jet airplanes, were to collude rather than…

A: Consumer refers to the the individual or a group of people that purchase goods or services for the…

Q: - 1.6. Consider the Cournot duopoly model where inverse demand is P(Q) = a − Q but firms have…

A: An industrial structure where businesses compete on the volume of output they will generate, which…

Q: The firms in a duopoly produce differentiated products. The inverse demand for Firm 1 is The inverse…

A: Duopoly is a market structure in which there are only two firms that compete with each other. In a…

Q: homogenous-good duopoly faces an inverse market demand function of p = 150 − Q. Assume that both…

A:

Q: Consider a Stackelberg duopoly with the demand function p=10-Q where Q =q +q,. Firms 1 and 2 have…

A:

Q: With the payoff matrix presented below which shows the annual profits for alternative pricing…

A: Given information

Q: 1) The market demand curve for mineral water is P=a-bQ. Suppose that there are two firms that…

A: An oligopoly is a market structure that is dominated by a small number of suppliers in the market.…

Q: 1 Consider a duopoly with firm 1 and firm 2. Their cost functions are 2q₁ and cq2, respectively,…

A: In Bertrand Duopoly model , both firms compete in prices as they go on undercutting the prices to…