Assignment Stackelberg Duopoly

Published by Mario Oettler on

Last Updated on 28. April 2023 by Martin Schuster

Task

Suppose we have a market with two vendors A and B. They aim to maximize their profits. They can adjust their production quantities. Vendor A is the first on the market. B follows after A has set his quantity. The following formula calculates the market price:

p = 800-qA-qB

What is the quantity, price and profit for A and B if both optimize individually?

Solution

qA = 400

GA = 80,000

qB = 200

GB = 40,000

p = 200

Previous Topic
Back to Lesson
Next Topic
Categories:
https://blockchain-academy.hs-mittweida.de/wp-content/uploads/2021/04/logo_bcam_rgb_gross.png

Welcome

Blockchain Academy

Continue with credential

No account yet?

Powered by Hidy

Register with Hidy

Register
Sign in

We need the following credential to register:

please select:

To create a new account, we need the following data from you:

We would appreciate the following additional information from you for the creation of your account:

You don't know Hidy yet?
No problem, you can find out more about us here!

Welcome

Blockchain Academy

Continue with credential

Already have an account?

Powered by Hidy

Sign in with Hidy

Register
Sign in

We need the following credential to log in:

please select:

You don't know Hidy yet?
No problem, you can find out more about us here!

Do you need assistance?
Click here to open chat.

Privacy Notice: This chat sends your questions to an external AI server.
How can we help you?
  • Please note: All questions, chat history, and feedback are sent to an external AI server for processing. Do not share sensitive personal information.

    All responses are generated by AI. Independently verify and fact-check all information before use.
  • No Chat History yet, start talking...