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A quick question!

  • 11-11-2010 11:03am
    #1
    xp90
    Banned (with Prison Access) Posts: 583 ✭✭✭


    Could anyone help me with these two questions?

    1)
    The inverse market demand in a homogenous-product Cournot duopoly is P = 200 – 4(Q1 + Q2) and costs are C1(Q1) =24Q1 and C2(Q2) = 40Q2. What is each firm’s equilibrium output?

    a) Q1 = 9.6, Q2 = 15.2
    b) Q1 = 32. Q2 = 24
    c) Q1 = 16, Q2 = 12
    Q1 = 4, Q2 = 18


    The inverse demand for a homogenous-product Stackelberg duopoly is P = 9,000 – 2.5Q. The cost structures for the leader and the follower, respectively, are CL(QL) = 1,500QL and CF(QF) = 3,000QF. What is the equilibrium output level for both the leader and the follower?

    a) Ql = 900; Qf = 350
    b) Ql = 1800; Qf = 700
    c) Ql = 300; Qf = 1800
    d) Ql = 1800; Qf = 300


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