1. The inverse demand curve for sprokets is P = 4,000 - 2Q, where the market output Q is the sum of each firm's output o

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1. The inverse demand curve for sprokets is P = 4,000 - 2Q,
where the market output Q is the sum of each firm's output of
sprokets, q1 + q2 and P is the
market price. Spokets can be produced at a constant marginal cost
MC = ATC = 1,000 and all sprokets produced are identical.
a) Suppose there is a duopoly in the production of sprokets
and the firms form a cartel (they collude) and evenly split the
market output. What is the market price, P = ?
b) Suppose there is a duopoly in the production of sprokets
and the firms form a cartel (they collude) and evenly split the
market output. What is the market profit?
c) Suppose there is a duopoly in the production of sprokets
and the firms engage in Bertrand (simultaneous price setting)
competition. What is the market output level, Q = ?
d) Suppose there is a duopoly in the production of sprokets
and the firms engage in Bertrand (simultaneous price setting)
competition. What is the market price, P = ?
e) Suppose there is a duopoly in the production of sprokets
and the firms engage in Bertrand (simultaneous price setting)
competition. What is the market profit level?
f) Suppose there is a duopoly in the production of sprokets
and the firms engage in Cournot (simultaneous quantity setting)
competition. What is the market output level, Q = ?
g) Suppose there is a duopoly in the production of sprokets
and the firms engage in Cournot (simultaneous quantity setting)
competition. What is the market price, P = ?