## [answered] MBI and Peter are the only producers of computers. MBI star

MBI and Peter are the only producers of computers. MBI started producing computers earlier than Pear. MBI's costs of production are given by C1 (y1) = y1^2. Pear's cost function is C2 (y2) = 5y2. The national demand for computers is y = 10^6 - 10^5p. ?

a) Calculate the Stackelberg equilibrium in which MBI is the leader in this market. Indicate output levels, market price, and the profits for each firm. ?

b) Suppose that both firms enter this market at the same time. Calculate the Cournot equilibrium and compare it to the situation in part a).

Solution details:
STATUS
QUALITY
Approved

This question was answered on: Sep 18, 2020

Solution~0001013726.zip (25.37 KB)

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy from our tutoring website www.aceyourhomework.com (Deadline assured. Flexible pricing. TurnItIn Report provided)

STATUS

QUALITY

Approved

Sep 18, 2020

EXPERT

Tutor