Black Truck 10
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I am trying to finish some econ homework, if you know how to do these ill paypal you 10 bucks for each question you complete. Please I need these answers by 5 cst today!
4. Firm A is an incumbent in a market lasting two periods with inverse demand curve p=148-9Q. Its first-period costs are C = 30 + 40q and it faces entry in the second period by Firm B, which has identical cost. However, there is an asymmetry between firms in that only Firm A has the option of raising fixed cost for both firms in period 2 by $150 (each increased by $150) while firm B cannot do so. Assume that entry would result in a Cournot duopoly. Using the extensive-form representation of this game to find out the equilibrium result, and the quantity, output, profit for each choice. Show all your work. (10 points)
and
2. As we discussed in class, the monopoly will not integrate the downstream competitive firm if there’s a fixed proportion production function and a cost to integrate. Explain why this happens? Using graph to explain the profit in two situations. (10 points)
4. Firm A is an incumbent in a market lasting two periods with inverse demand curve p=148-9Q. Its first-period costs are C = 30 + 40q and it faces entry in the second period by Firm B, which has identical cost. However, there is an asymmetry between firms in that only Firm A has the option of raising fixed cost for both firms in period 2 by $150 (each increased by $150) while firm B cannot do so. Assume that entry would result in a Cournot duopoly. Using the extensive-form representation of this game to find out the equilibrium result, and the quantity, output, profit for each choice. Show all your work. (10 points)
and
2. As we discussed in class, the monopoly will not integrate the downstream competitive firm if there’s a fixed proportion production function and a cost to integrate. Explain why this happens? Using graph to explain the profit in two situations. (10 points)
