The market demand curve in an industry is given by P = a -bQ. Any firm has an identical marignal cost MC = c per unit of output a) Suppose there is…

The market demand curve in an industry is given by P = a -bQ. Any firm has an identical marignal cost MC = c per unit of output

a) Suppose there is only one firm in the market. Find the monpoly quantity, price and profit

b) Suppose that there are two firms competing by choosing levels of output. Find the Cournot equilibrium quantity for each firm. Find the market price, and profit for each firm.

c) Compare the total profits in a) and b). In which case consumers woud be better off?

d) Now, asuming that Firm 1 is a Stackelberg leader, find the Stackelberg equilibirum quantities for each firm. Find the market price and profit for each firm.

e) Compare the total profit in d) with a) and b). Are the consumers better off in case d)?

Show more







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10