Explain why even the most independent central banks are still dependent on the support of the governement to their policy objectives effectively?
September 3, 2020
Christina Romer and Jared Bernstein in “The Job Impact of the American Recovery and Reinvestment Plan” calibrated the impact of the proposed
September 3, 2020

Dear tutor, please answer the following question:1. You are a duopolist producer of a homogeneous good. Both you and your competitior have zero marginal costs. The market demand curve is P = 60 – Q, where Q = Q1 + Q2 x Q1 is your output and Q2 is the output of your competitor. (a) (2 marks) Please find the equilibrium outputs in a Cournot game. Please calculate the profits of the two firms. (b) (2 marks) Please find the equilibrium outputs in a Stackelberg game where you are the first mover and your competitor is the second mover. Please calculate the profits of the two firms. (c) (1 mark) Do you identify a first-mover advantage?Thank you.

Ans 1. Given in the question,MC1 =MC2 = 0P = 60-q where Q = q1 + q2 q1 is output of firm 1q2 is output of firm 2 (a) COURNOT GAME Since marginal cost is zero, the profit function for Firm 1 is…

KM
Place Order