Cournot Duopoly - Reaction Functions

Related BrainMass Solutions

• The Cournet solution for the duopoly

  The Cournet solution for the duopoly is as described above with P(Q) = 4; QA = 4; QB = 4 [or Q = 8] for this particular set of reaction functions. The Cournet solution for the duopoly is shown.

• Equilibrium deadweight loss in duopoly

  Equilibrium deadweight loss in Cournot duopoly given demand and cost functions

• Equilibium Output in a Cournot Duopoly

  Equilibium Output in a Cournot Duopoly given demand and cost functions

• Reaction function, equilibrium output and market price

  To determine the reaction function of each firm we must first recall the formula for total revenue in a Cournot duopoly For Firm A it would be: TRA = $1,250QA - QA2 - QAQB Therefore marginal revenue for Firm A is: MRA = TRA/QA = $1,250 - $2QA

• question on Bertrand and Cournot Equilibriums

  Examples include duopolies that examined a duopoly market with general demand and cost functions. They found that at least one firm's price is higher in Cournot equilibrium than in Bertrand equilibrium.

• cournot duopoly

  99231 Question from Industrial Organization GIVEN: TC(qi)=5 qi+10, i=12 P(Q)=20-2Q ASSUME: a cournot duopoly where Q=q1+q2 DEMONSTRATE: the total output is less than the competitive output but more than the monopoly; the duopoly price

• Cournot Duopoly: Determining Equilibrium Price and Quantity

  357785 Cournot Duopoly: Determining Equilibrium Price and Quantity Two identical firms compete in a cournot duopoly. The demand faced P= 100-2Q. The cost function firm C(Q)= 4Q. What is Nash equilibrium?

• Cournot and Bertrand Equilibria

  Adjustment or reaction follows reaction until each firm successfully guesses the correct output of its rivals.

• Problems in market structures

  The two firms reaction functions intersect The market demand in the Bertrand duopoly is P = 10 - 3Q, and the marginal costs are $1. Fixed costs are zero for both firms. Based on this information we can conclude that A.