Business, 25.03.2020 18:56 maggiestevens5321

Suppose there are only two firms (1 and 2) serving the market for smartphones and the inverse demand curve for the whole market is given by P = 48 - Q. Also, both firms are identical and their cost function is given by C(q:) = 12q. That is, MC equals 12 for both firms. 1. Suppose firms maximize profits by setting quantities and they are able to collude with each other and form a cartel. Find their optimal qı, 92, Q, and also find the price at which they will be selling each smartphone, P. 2. Suppose firms operate as in a Cournot duopoly (setting quantities best responding to each other quantities). Find their equilibrium quantities 91, 92, equilibrium market output (Q) and the equilibrium price (P). For simplicity, you can assume 992- 3. Suppose firms operate as in a Bertrand duopoly (competing between them setting prices). Find equilibrium prices P1, P2, equilibrium market output (Q) and the equilibrium price (P). For simplicity, you can assume qi=92.

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Suppose there are only two firms (1 and 2) serving the market for smartphones and the inverse demand...