Suppose we have a duopoly of a homogeneous product with demand Q = 10 – P/2. The cost function of each firm is C = 10 + q*(q+1).Determine the Cournot equilibrium price and quantity.

Suppose the inverse market demand for manufactures is P(Q) = A – Q, where P and Q denoteprice and total goods produced and the parameter A denotes the size of the domestic market.Suppose any firm has a cost function, c(q) = cq, where A > c. Suppose there are two firm in themarket which produce q1 and q2, where Q = q1 + q2.a. Solve for the Cournot equilibrium levels of output (Q*), price (P*) and markups.b. What is the impact of an increase in market size, A, on Q*, P* and markups when there are twofirms? Provide some intuition for these predictions.c. Suppose a third firm enters so that Q = q1 + q2 + q3. What is the impact of entry on Q*, P* andmarkups? And why?   Explanation and math work for all three parts please!!

Suppose the inverse market demand for manufactures is P(Q) = A – Q, where P and Q denoteprice and total goods produced and the parameter A denotes the size of the domestic market.Suppose any firm has a cost function, c(q) = cq, where A > c. Suppose there are two firm in themarket which produce q1 and q2, where Q = q1 + q2.a. Solve for the Cournot equilibrium levels of output (Q*), price (P*) and markups.b. What is the impact of an increase in market size, A, on Q*, P* and markups when there are twofirms? Provide some intuition for these predictions.c. Suppose a third firm enters so that Q = q1 + q2 + q3. What is the impact of entry on Q*, P* andmarkups? And why?   Explanation and math work for all three parts please!!

1. marginal costs e, = c, = c, = 20. The inverse demand function is given by P = 100 - Q. where Q = q, + 4: + 93- Consider a market with three firms (i - 1, 2, 3). which have identical a) Identify the reaction functions for each firm and compute the Cournot equilibrium, i.e., the market price and quantity. b) What happens to the market price if all three firms merge compared to part (a)?

The inverse demand for a homogeneous-product Stackelburg duopoly is P=24000-5Q. The cost structures for the leader and the follower respectively are CL(QL)=3000QL and CF(QF)=4000QF.   a) What is the followers reaction function?   b) Determine the equilibrium output level for both the leader and the follower.   Leader output:   Follower output:   c) Determine the equilibrium markert price   $   d) Determine the profits of the leader and the follower.   Leader profits: $   Follower profits: $

C2) Consider an industry with only two firms: firm A and firm B. The industry's inverse demand is P(Q) = 400 - ¹1/Q, 10 where P is the market price and Q is the total industry output. Each firm has a marginal cost of $10. There are no fixed costs and no barriers to exit the market. a) Suppose that the two firms engage in Cournot competition. Find the equilibrium price PNE in the industry, the equilibrium outputs QANE and QBNE, as well as the profits NEA and NEB for each firm. marks] b) Suppose the two firms engage in Stackelberg competition, with firm A moving first, and firm B moving second. Find the equilibrium price PS in the industry, the equilibrium outputs QS and QBS, as well as the profits π and TSB for each firm. в c) For this subquestion only, suppose that firm B has a fixed cost of $200 000: What will firm B's optimal decision be, and what will be the resulting market structure? Now assume that instead of having two firms in the market, we have a monopoly facing the inverse…

Consider an identical n-firm Cournot market with market size S = 1, total demand p = 10 − Q (where Q is the total market quantity), and the total cost for each firm is C(q) = 1 + q. Assuming that firms continue to enter so long as profit is not negative, how many firms will enter the market in equilibrium?