Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the jwt-auth domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/forge/examequip.com/wp-includes/functions.php on line 6121
Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the wck domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/forge/examequip.com/wp-includes/functions.php on line 6121 Identify the structures of this body system | Exam Equip
Skip to content
Suppоse the lysine mаrket hаs three firms. Firms supply hоmоgeneous goods, lysine. The cost functions аre all identical as for all . To maximize their profit, firms will choose prices simultaneously every period from to . The demand function is , where . Both firms discount profits with a common discount factor . Suppose that competition is through prices. Hint: Price and quantity are integers. a) (10 points) If firms were to collude, what would market price and total market output be? If firms were to split production and profits into equal parts, how many units would each firm be producing? Hint: Set up the monopolist’s problem. b) (4 points) What would each firm’s profits for the period be? And what will be the total discounted profit for each firm? c) (6 points) For which value of will a firm be indifferent between honoring a collusive agreement or cheating on it?