What is Firm 1's reaction function?

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A: Given: Number of firms =3 Market elasticity of demand (Ed) = -2 Marginal Cost (MC)= $50

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Q: 1. there are two companies (company 1 and company 2) that operate in a market where both firms…

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Q: Two firms, Alpha Mowers and Beta Mowers, sell qa and qg identical lawnmowers (respectively). Market…

A: P = 150 - Q = 150 -qa -qb At profit maximisation, Marginal revenue = marginal cost

Q: cost function

A: In economics, a cost function is a mathematical illustration that describes the connection between…

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Q: Suppose two identical firms (A and B) engage in Cournot competition. Market demand is characterized…

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A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only first three…

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A: Demand : P(Q) = 400 − 1/10Q P = 400 − 0.1Q Q=Q1+Q2 P = 400 − 0.1(Q1+Q2) P = 400 − 0.1Q1-0.1Q2 MC=10…

Q: Consider the following Cournot model. • The inverse demand function is given by p = 30 –Q, where Q…

A: GIVEN P = 30 - Q Q =  q₁ + q₂

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Q: 1. if the total cost function for this market is TC = 500 + 10Q2 , calculate the total and marginal…

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Q: Use this information for this and the next question: The market inverse demand curve is given by…

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A: We are going to analyse Cournot competition to answer this question.

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Q: Question 2 Consider a market with just one firm. The demand in the market is p 100-2Q and the…

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