What is Firm 1's reaction function?

Suppose there are two pharma companies (A and B) vying to develop the first vaccine to cure AIDS. Assume a fixed MC across the two firms MCA = MCB = 4. Assume further that they both face a market demand of P = 12 -0.00004Q and Q=QA +QB. Assume firm B's reaction function is: QB = 125,000 - 0.5QA. Compute for: Firm A's Revenue or RA Firm A's Marginal revenue MR Output for firm A or QA and output for firm B or QB Market Q* and P*

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PROBLEM IV. Consider an industry consisting of two firms (i = 1,2) that are engaged in a Bertrand price competition. The demand function for the product of firm i is given by qi = 24 – 9p; + 6p;. The marginal cost of production for each firm is zero. Q12. The collusive price of the products is (a) 4 (b) 5 (c) 1 (d) 6 (e) 2

Could you answer the red highlighted part please

In the Cournot equilibrium, how much profit does firm 1 and firm 2 make in profit? (Round off to at least 2 decimal places, use negative numbers for losses.)

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

Suppose two firms with differentiated products are competing on price. The reaction curve for Firm 1 is P₁ = 4 + 0.5 P2, and the reaction curve for Firm 2 is P2 = 2 + P1. What is the equilibrium price outcome in this market? Select one: a. P₁ = 10 and P2 = 8 P1 ○ b. P₁ = 10 and P2 = 12 c. P₁ = P2 = 8 ○ d. P₁ = 4 and P2 = 6 e. P₁ = P2 = 4

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)?

Back in 2012, the world’s largest provider of chipsets for devices (e.g. smartphones, tablets) running on 4G network signed an agreement with one of the leading device manufacturers, committing to make significant payments to this manufacturer on condition that the manufacturer would exclusively use its chipsets. This was found to be violating competition law. a) Use economic theory to explain why such an agreement violates competition law and can hinder competition in the market. b) If you are working for the chipsets provider, how can you use economic theory to defend your company?   (1000 words)