Cournot duopoly model: 2 firms simultaneously choose quantities q1, q2. The price per unit is P(q1, q2) = 1 - (q1 +q2). Assume that both firms have a constant marginal cost of zero. Consider the following modification of the Cournot game: Firm 1 is a 'maximizing' type, i.e. firm 1 aims to maximize his profit. Firm 2 is a 'satisficing' type, i.e. given the quantity choice of firm 1, firm 2 aims to maximize q2 as far as firm 2 receives a profit of at least *. If q₁ is chosen so that firm 2 can never reach a profit of phi .*, then firm 2 only aims to maximize his profit. At the Nash equilibrium of this modified Cournot game for phi* = 1/2, firm 2 produces strictly more than firm 1. (T/F)

Answers

Answer 1

The given statement, "At the Nash equilibrium of this modified Cournot game for phi* = 1/2, firm 2 produces strictly more than firm 1" is true. A Cournot duopoly model is a market model in which two firms compete by picking a volume (or quantity) of output and selling it at a price determined by the volume produced by the duopolist.

For example, consider two gas stations across the street from one another. Each firm must decide how much gasoline to sell and at what price, given the price and quantity offered by its competitor. The key issue in this model is how each duopolist responds to the production levels of the other.The price function in the Cournot duopoly model is given by:P(q1,q2) = 1 - (q1+q2)where q1 and q2 are the output levels of firm 1 and 2 respectively.The marginal cost is zero for both firms. In this model, there are two types of firms: maximizing and satisficing types. The maximizing type is firm 1, while the satisficing type is firm 2. The maximizing type seeks to maximize profit, while the satisficing type seeks to maximize profit as long as it is at least equal to some fixed level. Firm 2 produces more than firm 1 at Nash equilibrium of this modified Cournot game for phi* = 1/2. Hence, the given statement, "At the Nash equilibrium of this modified Cournot game for phi* = 1/2, firm 2 produces strictly more than firm 1" is true.

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Related Questions

Ida has always wanted to be a teacher and give back to her community. However, she has recently come to realize that she will never be able to afford a fancy lifestyle if she chooses to be an educator. Ida is now confused about which career path to choose. Which values conflict is Ida MOST likely facing?

A.
leadership vs. acceptance

B.
security vs. risk

C.
wealth vs. service

D.
challenge vs. control

Answers

Answer:

C. Wealth vs. Service

Explanation:

Ida is choosing between wealth and service because she needs to choose between living a non-fancy lifestyle or educating the future generations (service).

hello , What are three common tools for qualitative research in business and marketing?

Answers

Answer:

they would be in-depth interviews, focus group discussions and observation over data

Explanation:

Hope this helps, please rate and mark as brainlest :)

consumer wealth is defined as the total value of ______.

Answers

The Consumer wealth is defined as the total value of assets owned by individuals .

The Consumer-Wealth includes "financial" assets such as stocks, bonds, and savings accounts, as well as the "non-financial" assets such as real estate, automobiles, and other durable goods.

The Consumer-Wealth is the total net worth of individuals, including any liabilities or debts owed.

The Consumer wealth is an important factor which determines the consumer spending and economic growth.

When the consumer wealth increases, individuals may feel more financially secure and may be more willing to spend money, and

When consumer wealth decreases, individuals may be more cautious with their spending money.

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This operations and supply chain management career path works closely with​ manufacturing, marketing, and purchasing to create​ timely, cost-effective​ import/export supply​ chains?

Answers

This career path in operations and supply chain management works closely with purchasing, marketing, and manufacturing to produce quick, cost-effective import/export processes.

Give an example involving manufacturing.

What Examples Exist in Manufacturing? Manufacturing is the creation of new products from parts or raw materials. Because they all produce goods rather than providing services, bakeries, shoemakers, auto manufacturers, and tailors are a few instances of manufacturing.

a picture of a manufacturing process

Making items, whether mechanically or manually, with the intention of selling them to customers is known as manufacturing.

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A change in the quantity demanded comes about when there is a change in the price of the good​ (other things held​ constant). Such a change in quantity demanded involves a _____ a given demand curve.

Answers

Answer:

Movement along

Explanation:

As we know that

There is an opposite relationship lies between the price and the demanded i.e. quantity as per the law of demand that means if the price increased than the quantity demanded decreased and vice versa

But when some changes are there in quantity demanded by having change in price keeping other things remain constant so the change in quantity demanded would be movement along with the demand curve and the same is to be considered

nonprice competition seeks to increase perceived benefits associated with a product.
T/F

Answers

True. Nonprice competition refers to the marketing strategy used by businesses to differentiate their products or services from competitors' offerings based on factors other than price.

It aims to enhance the perceived benefits associated with a product or service in order to attract customers. By highlighting unique features, quality, branding, customer service, convenience, or other attributes, businesses seek to create a competitive advantage and appeal to consumers on factors beyond price alone. Nonprice competition recognizes that consumers often consider various factors when making purchasing decisions, and by emphasizing the value and benefits of a product, businesses can influence consumer preferences and increase their market share.

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I give you loooots of points for this very important question......


Truth....or daaare???!

Answers

Answer:

truth

Explanation:

Answer:

Truth

Explanation:

Solomon breaches his contract with Neal to purchase the 500 pairs of socks he had promised to buy. Neal is able to sell the 500 pairs to Renny for a much lower amount. Neal then sues Solomon for dam-ages. Neal will be able to recover:a.the amount in the liquidated damages clause.b.the difference between Solomon's contract price and the amount paid by Renny.c.Solomon's contract price.d.an amount which depends on whether Solomon intentionally breached because he found cheaper socks somewhere else.

Answers

Answer:

b. the difference between Solomon's contract price and the amount paid by Renny

Explanation:

Neal sues Solomon for damages as Solomon breaches his contract with Neal to purchase the 500 pairs of socks from him. Although he can sell the 500 pairs to Renny even then he was in loss only as he sells socks to Renny at a lower amount then it's actual cost.

In this case, Neal will be able to recover the difference between Solomon's contract price and the amount paid by Renny.

When the stock market as a whole is rising in value then it is referred to as a bear market. True or false?

Answers

Answer: False

Explanation: A bear market is when a market experiences prolonged price declines. It typically describes a condition in which securities prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment.


2. Do you really think the Bono case described in Ch. 2 is a
genuine ethical conflict? Explain.
6. Describe the ethical issue in the Siemens
case.

Answers

Bono case involves a conflict between personal interests and ethical responsibilities, while the Siemens case highlights widespread bribery and corruption.

2. In the Bono case, it is important to consider the conflict between Bono's personal interests and his public persona as an advocate for social causes. On one hand, Bono's investment in the company was driven by his desire to address poverty through business initiatives.

6. The Siemens case involves a significant ethical issue surrounding the company's involvement in bribery and corruption. Siemens engaged in a systematic scheme of bribing public officials, falsifying records, and evading regulations to secure contracts and gain an unfair advantage in multiple countries.

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Madison purchased a desk for her home office for $587.33. Using the store's installment plan, she made a $147.00 down payment. What amount did she finance?

Answers

$587.33−$147=$440.33 The amount financed is the sum of the down payment and the cash price.

Why is there a down payment needed?

With a down payment, a buyer can take possession of the house or car and reduce their monthly mortgage main and interest payments. A lower interest rate can be obtained by the buyer by making a larger down payment. A down payment is a one-time, upfront sum paid for pricey goods or services, such as a car or a home. It is frequently paid in cash or anything of value at the time the transaction is finished. After that, a loan of some form must be used to finance the remaining portion of the payment.

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Starbucks just released study Starbucks coffee increases your life span what is the change in demand or quantity demand

Answers

Answer:

There would be a change in demand. there would be an increase in demand. the demand curve would shift rightward

Explanation:

Only a change in the price of a good leads to a change in the quantity demanded. If the price of the coffee increased, the quantity demanded would reduce and if it reduced, it would would increase

So based on the report the quantity demanded would increase. This is because most people want to live longer. This would result in the demand curve shifting rightward

If the price of the share grows as the company grows, how does buying shares in a company benefit an investor?.

Answers

Answer:

An investor will be able to sell these shares for a higher price and make a profit.

Explanation:

This is because the investor can sell the share for a higher price as people see the company is doing well.

Discuss three authority and responsibility a manager has .

Nothing more than 5 lines please!

Answers

Answer:

Explanation:

Managers' roles fall into three basic categories: informational roles, interpersonal roles, and decisional roles.

Which quality is a requirement In order for a destination to become a tourism destination area (TDA)?

A. should be accessible by road
B. should be in a developed country
C. should have a unique feature
D. should have a moderate climate​

Answers

C, otherwise there is no reason to go
i think it would be a bit i’m not for sure yet

Describe the three different ways the argument section of a cover letter can be formatted.

Answers

Answer:

i think they are personal, formal and informal

Explanation:

im not sure but i think thats it

The three different ways for formatting the argument section of a cover letter are paragraphs, bullet points, and T-form.

The formal paragraph format uses the block paragraphs ideal for a business letter, wherein the argument of the cover letter is presented in the second and third paragraphs in complete sentences.

The bullet points format lists the argument of the cover letter as bulleted points instead of in paragraph form. Using bullet points focuses on the applicant's qualifications, making them attractive to the reader.

Lastly, the argument section of the cover letter can be presented in a T-form. This format enables the applicant to compare the requirements of the vacancy notice with their qualifications.

Thus, the argument section of a cover letter can be formatted uniquely, depending on the occasion and the reader.

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_____ is a form of short-term financing sold by corporations, such as Salton Brands, that mature from 1 to 270 days after the date of issue.

Answers

Commercial paper is a form of short-term financing sold by corporations, such as Salton Brands, that mature from 1 to 270 days after the date of issue.

Corporations are legal entities formed by individuals or shareholders to conduct business activities. They are separate legal entities from their owners, offering limited liability protection. Corporations can be public or private and operate in various industries. They issue shares of stock to raise capital and distribute profits to shareholders. Corporations have a distinct legal structure, with a board of directors overseeing strategic decisions and executive officers managing day-to-day operations. They are subject to corporate taxes and must comply with legal and regulatory requirements in the jurisdictions where they operate.

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2. Making choices is necessary in all economic systems because:
A. there are so many products that we cannot use them all at once
B. the government has so much money that it does not know what to do with it
C. there are so many resources compared to people’s needs that we have to choose which ones not to use
D. there are so many wants compared to scarce resources that we have to decide what to produce

Answers

Explanation:

it is d because we don't have enough resources to sustain forever so we have to figure out how to make them last.

3. Which one of the following is a reward that an entrepreneur might expect to gain from running
their own business?
a. Business fallure
b. Independence
c. Financial loss
d. Lack of security

Answers

B. independence
the rest of the answers are disadvantages
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Which job in the Finance career cluster is ideal for a person with a master’s degree?

A. Bank Teller
B. Controller
C. New Accounts Clerk
D. Loan Officer

Answers

Answer:

i put d

Explanation:

Answer:

ddddddddddddddddddddddddddddddddddddddddddd

Explanation:

What education does a product developer or product designer that creates yugioh cards for Konami needs?

Answers

Answer:

100 students at college

here is a riddle

What goes up but never comes down?

Answers

Answer:

your age?

Explanation:

simply you grow up but there is no way you can become smaller/kid or a baby again

Answer: your height

Explanation:

That’s why they call it “growing up”

A special assessment creates a voluntary tax lien if:_______

a. all taxpayers in a taxing district have voted for it.
b. the affected property owners have requested the improvement.
c. a taxing entity initiates the assessment.
d. the improvement to be funded is for the general good.

Answers

Answer: the affected property owners have requested the improvement

Explanation:

A voluntary lien is simply a claim that an individual has over another individual's property as security which will be used for debt payment. It should be noted that liens are not attached to the person but the property.

A special assessment creates a voluntary tax lien if the affected property owners have requested the improvement.

During her lunch break one afternoon, alison set a goal of completing all required trainings in the next 90 days by taking two trainings a week. What is she doing?.

Answers

She is planning

Planning strategically. Strategic plans are all about the reasons why certain things must occur, according to Story.Planning for contingencies and tactical actions

What are the initial three steps in a proper organization's planning process?

It's crucial to review key measures that will position you and your business for success before you start the strategic planning process.

Decide on your strategic stance.Set priorities for your goals.Create a plan, then carry it out and manage it.Examine and update the plan.

Types of planning

operational, preparation, Motivational speaker for CEOs Mack Story stated on LinkedIn that operational strategies are about how things should proceed. ...

Planning strategically. Strategic plans are all about the reasons why certain things must occur, according to Story.Planning for contingencies and tactical actions

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______ Is a market in which a large number of suppliers compete with each other to satisfy the needs and wants of a large numbers of consumers at a competitive price.???

Answers

Answer : Monopolistic competition

Answer:

Monopolistic Competition

Explanation:

In a monopolistic competitive market, there are large numbers of sellers who do not sell identical products instead they sell differential products. They compete with each other at a competitive price. The products could be differentiated in many ways including quality, style, location and even brand name. Since they compete at a competitive price, if there is a substantial rise in the price of any of the products, the buyers could quickly shift from one product to another. The most crucial factor behind product differentiation is because of geographical factors. Under a monopolistic competitive market, the sellers do not have any influence over customer loyalty and limited control over the price.

more recently, apple has leveraged its itunes platform as a distribution channel to launch a new subscription service. just nine months after launching the apple music, the firm had attracted over 13 million paying subscribers to its streaming service. group of answer choices true false

Answers

The statement "more recently, apple has leveraged its itunes platform as a distribution channel to launch a new subscription service. just nine months after launching the apple music, the firm had attracted over 13 million paying subscribers to its streaming service." is true. Apple has leveraged its iTunes platform as a distribution channel to launch its subscription service, Apple Music.

Apple has indeed leveraged its iTunes platform as a distribution channel to launch a new subscription service called Apple Music. Just nine months after launching Apple Music, the firm had attracted over 13 million paying subscribers to its streaming service. This shows the effectiveness of using a well-established distribution channel like iTunes to launch a new product or service.

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True/False :Manager of a software company should promote productivity and sacrifice quality and ethical approach a little bit if needed, because software engineering is a balancing act.

Answers

False. The manager of a software company should not promote productivity at the cost of sacrificing quality and ethical approach. In fact, it is the responsibility of the manager to ensure that the company produces quality software that meets the ethical standards.

Software engineering is indeed a balancing act, and the manager must balance productivity, quality, and ethics to ensure the success of the company.

Sacrificing quality and ethical approach in the pursuit of productivity can lead to serious consequences, such as loss of reputation, customer dissatisfaction, and legal issues. Quality and ethics should always be at the forefront of software development, and the manager must ensure that the team understands this.

Furthermore, promoting productivity at the cost of quality and ethics can actually be counterproductive in the long run. Poor quality software can result in increased costs due to maintenance and bug fixes, while unethical practices can harm the company's reputation and drive away potential customers.

In conclusion, while software engineering is indeed a balancing act, the manager of a software company should prioritize quality and ethical approach over productivity to ensure the long-term success of the company.

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What factors should be considered to ensure that sales are profitable?

Answers

Return on Equity (ROE): ROE is most frequently used to assess corporate profitability from the viewpoint of shareholders. The ratio displays the earnings per share of the stockholders.

What aspects need to be taken into account to make sure that sales are profitable?

Price, quantity, variable costs, and fixed costs are the main variables that affect your profit. Below, we go into more detail about each of these components, but first, we'd like to go over some important ideas to bear in mind if you want to boost your profitability.

What are the profitable strategies?

In general, break-even studies, return on asset evaluations, and margin or profitability ratios are the three main approaches to measure if your organization is successful.

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3. It is important to make certain that your employees are aware of the work ethic expected at your company. What work ethics issues would be most ideal for your employees ? (3 points )

Answers

It is critical to ensure that your employees understand the work ethics that is expected at your company. Provide them with the company's ethical policy. If they already have access to it, remind them to read it and follow it.

What is Ethics?

Ethics is the distinction between what is right and what is wrong. There are times when people must sacrifice their own benefit for the benefit of the public at large.

Employees may become more devoted to their roles and express pride in being a part of such an organization if they understand and perceive their organization's commitment to high ethical standards. This type of transformation has the potential to significantly improve organisational effectiveness.

Therefore, it is essential for the employees to follow the work ethics.

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An investor has $20,000 invested in a mutual fund with a sales charge of 8%. The fund offers a breakpoint of 4% for investments of $25,000 or more. If the investor deposits an additional $10,000, how much does the investor pay in sales charges under rights of accumulation?

Answers

Under the rights of accumulation, the investor will pay a total sales charge of $2,000.

Under the rights of accumulation, the investor will receive a reduced sales charge based on the total investment amount, taking into account the previous investment and the additional deposit. Here's how to calculate the sales charge:

Initial investment: Sales Charge = Initial Investment * Sales Charge Percentage

Sales Charge = $20,000 * 0.08

Sales Charge = $1,600

Additional investment: The additional investment of $10,000 brings the total investment to $30,000.

Determine the reduced sales charge based on the breakpoint: Since the total investment of $30,000 exceeds the breakpoint of $25,000, the reduced sales charge applies.

Reduced Sales Charge Percentage = Sales Charge Percentage at Breakpoint

Reduced Sales Charge Percentage = 4%

Calculate the reduced sales charge for the additional investment:

Sales Charge for Additional Investment = Additional Investment * Reduced Sales Charge Percentage

Sales Charge for Additional Investment = $10,000 * 0.04

Sales Charge for Additional Investment = $400

Total Sales Charge: Total Sales Charge = Initial Sales Charge + Sales Charge for Additional Investment

Total Sales Charge = $1,600 + $400

Total Sales Charge = $2,000.

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