Hello, was seeing if someone could provide me with the solutions for these problems to use as a study tool for an upcoming final. Thank you!
1) Oligopoly theory assumes strategic behavior on the part of the firms.
Calculate the Cournot equilibrium.
Calculate the Stackelberg equilibrium, assuming firm A is the dominate firm. Compare and contrast your results.
7) Let the following equations describe the conditions facing a small-to-medium sized firm that sells a product
with some close substitutes, and which exists in a market with some low-to-moderate barriers to entry.
???????? = $10,000???? − $7.8????2
???????? = $200,000 + $2,320???? + $5????2
8a) Carefully explain how two people or countries can find an efficient competitive equilibrium in
exchange. What values have to equate for this to be true? Explain what this means.
b) We like to say that an efficient allocation/equilibrium is good/equitable. Discuss how such an equilibrium
may and may not be the case.