I NEED ALL OF THESE PROBLEMS SOLVED Use the following information for question 2
ID: 1164896 • Letter: I
Question
I NEED ALL OF THESE PROBLEMS SOLVED
Use the following information for question 20: Consider a Hotelling line along·beach of length 1 and consumers are located uniformly along the beach. There are two firms (Firm Ed and Firm Ted) selling ice cream along the beach. 20. How can Ed and Ted prevent ending up in the Bertrand Parandox? L. They don't have to do anything-it's a hot day and consumers really want ice IL. Ed and Ted could differentiate their products cream and will pay anything to have it a. 1 only b. II only e. I and11 d. neither I orI the Use the following for questions 21-22. Suppose in a Cournot Oligopoly you know following best response functions for Fim C and Firm D respectively p -600-qo/2 Suppose you also know the market demand is Q-1000P 21. What is the Nash Equilibrium quantity and prices for this firm? a. qc- 600,qp 300, Pc -400, PD-700 b.qc-300?P"600, P-900 e.c 600,qp-300, P-100 d.q-300, gp-600, Pc 700, Pa-400 22. Which graph most accurately depicts the graph of the two hest response functions for Firm C and Firm D?Explanation / Answer
20> c
Reason
If the consumers are price-insensitive, then the paradox does not arise as there is no competition on price. Secondly, if the products are different, then there is no perfect competition.
21> In a cournout competition, they compete on the basis of output.
qc=700-qd/3 ; qd=600-qc/2
Solving these two, we get qd=600-(700-qd/3)/2=250+qd/6
So, qd=300
qc=600
price must be same, thus c is correct option.
22> The graph is not visible.
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