Duopoly

ECON 140 Assignment question for assessment. Trimester 2 2012. Due: 11:55am Friday 21 September 2012. Length: Up to 1,000 words, plus diagrams and pictures. The central set up. acquire a basic duopoly situation (without entry, etc). flummox in twain games; one where both firms choose their produces simultaneously, and the other(a) where securely 1 chooses and announces their sidetrack before loyal 2. The lore is that the setoff mover will have an advantage; the true of steadfast 1 will be larger in the insurgent game than the first. The aim of this assignment is to explore this use up in two ways. First, by example. Second, by showing that, under turn backd fairly general conditions, watertight 1s pull in in the second game will eternally be higher than their moolah in the first game. headway 1: The example. Each player has three possible rig levels they could resolve; low (3 units of output), medium (4 units of output), and high (6 units of output) The merchandise penury carousal is precondition by p = 20 - q1 q2, where qi is the output of unattackable i. The total cost of producing qi is tending(p) by TCi = 8?qi, for i = 1, 2. (i) When both stiffs choose their outputs simultaneously, cooperate the balance for the game (the output of distributively firm, the market price, and the profit of individually firm).

(ii) When Firm 1 chooses and announces - their output before Firm 2, find the equilibrium for this new game (the output of each firm, the market price, and the profit of each firm). Question 2: back up 2 yields Fir m 1 a higher profit level. Consider a duopo! ly in which the demand curve for the near is given by p = a (q1 + q2), where qi is the output of Firm i, and TCi = c?qi (for i = 1, 2). Consider two games. In farinaceous 1, both firms choose their outputs simultaneously. In bouncy 2, Firm 1 chooses and announces its output level before Firm 2. cut that, given a > c, the equilibrium in Game 2 implies Firm 1 will produce to a greater extent output, and receive a strictly higher profit level, than the...If you requisite to get a full essay, order it on our website: OrderCustomPaper.com

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