Econ 3057, 4438, 8038: Industrial Organisation
Workshop week 11 (Assessment 2)
产业组织作业代写 Use the following information for Questions 1 to Q7: Two firms produce in a market with demand P = 110-Q. Both firms produce with marginal cost of
Use the following information for Questions 1 to Q7: 产业组织作业代写
Two firms produce in a market with demand P = 110-Q. Both firms produce with marginal cost of prodution equal to 10. Firm 1 sets output first. After observing firm 1ís output, firm 2 sets its output.
2.Solve for the Stackelberg equilibrium. The quantity sold by firm 1 is?
3.Solve for the Stackelberg equilibrium. The quantity sold by firm 2 is?
8. 产业组织作业代写
Which of the following is not a characteristic of a long-run equilibrium for a firm in a monopolistically competitive industry?
(a) The firms maximise profits.
(b) The price will be greater than marginal cost.
(c) At each firmís output level, the average total cost will be minimised.
(d) The price will be equal to average total cost.
9.If there are four firms,find the simultaneous move equilibrium in location.
10.Suppose that consumerís travel cost is linear in the distance. Find the socially optimal locations of the four firms. (5 points)
