得分阅卷教师 三、Calculation:(每题20分，共40分) roduce at a constant average (and marginal)cost of AC- MC=5.It faces a market demand curve given by Q=53-P a.Calculate the profit-maximizing price and quantity for this monopolist.Also calculate its profits. b.Suppose a second firm enters the market.Let Q be the output of the first firm and Q:be the output ofthe second.Market demand is now given by Q1+Qa=53-P. Assuming that this second firm has the same costs as the first,write the profits ofeach firm as functions ofQ and Q. e.Suppose (as in the Cournot model)that each firm chooses its profit-maximizing level of output on the assumption that its competitor's output is fixed.Find each firm's"reaction curve"(ie.the rule that gives its desired output in terms ofits competitor's output). d.Caleulate the Cournot equilibrium (i.e.,the values ofQ and Q for which both firms are doing as well as they can given their competitors'output).What are the resulting market price and profits ofeach firm? 2 Two firms are in the chocolate market.Each can choose to go for the highend of the market (high quality)or the low end (ow quality).Resulting profits are given by the following pavoffmatrix: Firm2 Low High Low -20,-30 900,600 Firml High 100,800 50.50 a.What outcomes,ifany,are Nash equilibria? b.If the managerof each firm is conservative and each follows a maximin strategy, what will be the outcome? c.What is the cooperative outcome?三、Calculation：（每题 20 分，共 40 分） 1 A monopolist can produce at a constant average (and marginal) cost of AC = MC = 5. It faces a market demand curve given by Q = 53 - P. a. Calculate the profit-maximizing price and quantity for this monopolist. Also calculate its profits. b. Suppose a second firm enters the market. Let Q1 be the output of the first firm and Q2 be the output of the second. Market demand is now given by Q1 + Q2 = 53 - P. Assuming that this second firm has the same costs as the first, write the profits of each firm as functions of Q1 and Q2 . c.Suppose (as in the Cournot model) that each firm chooses its profit -maximizing level of output on the assumption that its competitor’s output is fixed. Find each firm’s “reaction curve” (i.e., the rule that gives its desired output in terms of its competitor’s output). d. Calculate the Cournot equilibrium (i.e., the values of Q1 and Q2 for which both firms are doing as well as they can given their competitors’ output). What are the resulting market price and profits of each firm? 2 Two firms are in the chocolate market. Each can choose to go for the high end of the market (high quality) or the low end (low quality). Resulting profits are given by the following payoff matrix: Firm 2 Low High a. What outcomes, if any, are Nash equilibria? b. If the managerof each firm is conservative and each follows a maximin strategy, what will be the outcome? c. What is the cooperative outcome? -20, -30 900, 600 100, 800 50, 50 得分 阅卷教师 Firm 1 Low High