With equal firm structure, you can use their symmetry to say q1=q2=q3=q3c. Use this to calculate the first reaction function. Q=20-1/2Q-1/2Q --> 2Q=20 --> Q=10
Use the following equation when the market demand is known, the N greater than 2 firms; N firms have the same MC : a is the interception 100, c is the marginal cost, b is the slop 2. N is the number of firms 3 each firm produces q is : (a-c)/(N+1)b= (100--20)/(3+1)2=10 units then substitutes 10 in the p=100--2Q=100--2(3 firms x10)=40, Price is 40.
why did you make it 20 mins long though it could easily be done in 5??? just solve Q2 and q3 for Q1 as Q1 = Q2 = Q3. that results from MC1 = MC2 = MC3. you think too much man.
Thank you for slowing down the pace, rly appreciate your video
Can you please do a Stackelberg with three firms
Making firm 1 leader and 2 and 3 follower with same marginal cost
With equal firm structure, you can use their symmetry to say q1=q2=q3=q3c. Use this to calculate the first reaction function. Q=20-1/2Q-1/2Q --> 2Q=20 --> Q=10
What a wonderful explanation is this made
You are a life saver, thanks a lot
4:03 : Just solve for q1 = q2 = q3, you're waisting your time...
This is supposed to be a friendly nooby explanation, so of course he does it step by step
Hi I am desperate how to solve the Cournot problem for n firms. Especially the reaction function is getting messy... thx for your help
Use the following equation when the market demand is known, the N greater than 2 firms; N firms have the same MC :
a is the interception 100, c is the marginal cost, b is the slop 2. N is the number of firms 3
each firm produces q is :
(a-c)/(N+1)b= (100--20)/(3+1)2=10 units
then substitutes 10 in the p=100--2Q=100--2(3 firms x10)=40, Price is 40.
Thanks once again for helping me in my meanwhile 4th different economic course :)
شكرًا استاذ
how do you do this is if its stackleberg?
lifesaver
Awesome!
thank you so much!
what would you do if you wanted the reaction function of firm 1 only using the output of firm 2?
Thank you!
Love you Man , ur the Best
Thank you
for 2 firms P= 100- Q but why did u use P= Q-2Q?
Can we do this for 4 firms using the same method?
thank u
what if there's a capacity limit on the firms
Thanks
TY!
Tnx!
Its a symmetric equilibrium, why would you make it so complex, lol.
why did you make it 20 mins long though it could easily be done in 5??? just solve Q2 and q3 for Q1 as Q1 = Q2 = Q3. that results from MC1 = MC2 = MC3. you think too much man.
What if firm 2 nd 3 merge and form a single firm....should we let ( q2+q3 ) = q' ....nd then proceed as 2 firms method.....plz rply
Sir you are the best... I love you...but I'm not gay...
too many ads!!!