The annual market demand for UVic coffee mugs is given by P=20-Q, where P is the price, and Q is the quantity (in units of 1000 mugs) of these fancy…

The annual market demand for UVic coffee mugs is given by P=20-Q, where P is the price, and Q is the quantity (in units of 1000 mugs) of these fancy collectors’ items. In this market, consider two sellers, namely the Bookstore with cost function C1(Q1)=2Q1+36 (Q1 is the Bookstore’s quantity); and UVSS with cost function C2(Q2)= 5Q2+4 (Q2 is UVSS’ quantity). Assume both the Bookstore and UVSS maximize profits Questions:

Assume first that the Bookstore and UVSS hold Cournot conjectures when competing for clients

(a) What does it mean if we say that UVSS “holds Cournot conjectures regarding its competitor’s behaviour”?

(b) Derive the so-called best response functions of the Bookstore and UVSS

(c) Derive the Nash equilibrium of this game (i.e. the Cournot-Nash equilibrium).

(d) What would it be worth to the Bookstore to make UVic decide that it should be the only permitted seller of UVic coffee mugs Assume now that Bookstore and UVSS were Bertrand competitors

(e) Sketch the game tree of the Bertrand competition game between Bookstore and UVSS

(f) What would be equilibrium of the Bertrand game between Bookstore and UVSS

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