Mikroekonomi Pertengahan
Chapter 12 Review Questions 6. What do the Cournot and Bertrand models have in common? What is different about the two models? 7. Explain the meaning of a Nash equilibrium when firms are competing with respect to price. Why is the equilibrium stable? Why don’t the firms raise prices to the level that maximizes joint profits? Exercises 5. Two firms compete in selling identical widgets. They choose their output levels Q 1 and Q 2 simultaneously and face the demand curve P = 30 - Q where Q = Q 1 + Q 2 . Until recently, both firms had zero marginal costs . Recent environmental regulations have increased Firm 2’s marginal cost to $15. Firm 1’s marginal cost remains constant at zero. True or false: a s a result, the market price will rise to the monopoly level. 6. Suppose that two identical firms produce widgets and that they are the only firms in the market . Their costs are give...