question archive In an oligopoly market, there are two firms (Firm_A and Firm_B) simultaneously competing with each other on prices and the respective demand functions are given as: QDA = 60 - 4PA +2
In an oligopoly market, there are two firms (Firm_A and Firm_B) simultaneously competing with each other on prices and the respective demand functions are given as: QDA = 60 - 4PA +2
Subject:EconomicsPrice: Bought3
In an oligopoly market, there are two firms (Firm_A and Firm_B) simultaneously competing with each other on prices and the respective demand functions are given as: QDA = 60 - 4PA +2.5P OD, - 50 - 5P, +2PA Where QD is the quantity for Firm_A and QD3 is the quantity for Firm_B, P, is the price of the product offered by Firm_A and Ps is the price of the product offered by Firm_B. The marginal cost for Firm_A is MCA= Rs. 5 and the marginal cost for Firm_B is MC=Rs. 4. Derive the profit function for each firm. Also, calculate the equilibrium price for Firm_A and Firm_B. [10] (b) In another oligopoly market, there are two firms but one is the leader (Firm_L) and the other one is the follower (Firm_F). The market demand is defined as P = 400 - 20 and each firm has a similar total cost function: TC = 40g. Find the equilibrium output for Firm_L and Firm_H, equilibrium price, and profits.
