Let's think of dual competition in the spirit of Stackelberg and there is no marginal cost. Furthermore is given that the inverse demand is p = a - b-Q. Together, companies will produce as a whole 2/3 a/b 1/2 a/b None of the others is correct. a/b 3/4 a/b
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- Suppose you’re operating one of only two coffee shops in town. Assume that both coffee shops produce identical coffee so that customers only care about the price. That is, you’re engaged in Bertrand competition. If you know that the other coffee shop charges $5 for a 16oz coffee, what price should you set for your 16oz coffee? Question 22Answer a. $4.99 b. $5.01 c. $5.00 d. $6 e. $4What term refers to companies shaping their actions based on what their competitors do? O allocative efficiency long run equilibrium mutual interdependence productive efficiencyIn an industry comprised of three companies, which are small-scale manufacturers or an easily replicable product unprotected by brand recognition or patents, the most representative model of company behavior is: O oligoply. O perfect competition. monopolistic competition.
- Below we the market demand for a good, and the total cost of producing various levels of quantities by the industry. This problem is a theoretical example of Cournot Competition, where firms choose quantities to produce, and end up selling at whatever price the market is willing to pay for the total industry output. For simplification purposes, firms have no fixed costs, and a constant MC and ATC.a. Complete the table. Quantity Price TR MR TC MC ATC Profit 0 $14 — 0 — — 10 $11 10 20 $8 20 30 $5 30 40 $2 40Discuss briefly why competition exists in the industry? Give atleast Five reasons.One useful way of analyzing the nature of competition in an industry has been suggested by Porter's ' five forces model of competition . Discuss Porters five forces model . Relate your answer to Ryanair .
- Under the model of monopolistic competition, a(an) ________ in the number of firms in the industry will cause ________ to ________..Compare and contrast the similarities and differences between perfect competition andmonopoly.From a societal point of view, can we claim that perfect competition and monopoly are equally efficient? Why, or why not? Explain. Answer must correct. Describe it step by step. Use word file for answer. Use graph if needed. word limit minimum 350 .
- A perfectly competitive firm is onsidered to be more generous in terms of price and quantity of output in comparison to firm belonged to monopoly and monopolistic markets. C. If firms incurring loss in this market begin to exit the market, what will happen to the market equilibrium? Demonstrate your answer using a simplified graph. d. The firm wishes to supply output more than the quantity determined under the equilibrium condition, is it worth to pursue?Is collusion by a group of sellers or buyers possible in a market of pure and perfect competition? Explain your answer.If multiple firms colluding to charge higher prices would lead to higher profits than when competing with one another. What is the principle reason more firms don't partake in this behavior? It is illegal It is better to produce more goods than to raise prices. Competing actually leads to higher profits in the long run O Firms value competition above profits.