Suppose that the market for widgets has a single seller who…

Suppose that the market for widgets has a single seller who faces an inverse demand curve given by P = 100 – 2Q and a constant marginal cost of production of 20 dollars per widget. What is your prediction for the equilibrium quantity and price in this market?

Suppose that you are studying a local car market. This marke…

Suppose that you are studying a local car market. This market is served by two vehicle producers, A and B. This is a sequential market where the two firms compete on quantity and A moves first. Suppose that the inverse demand curve for cars is given by P = 410 – 20Q, and that both have a constant marginal cost of 10. What is the equilibrium price and quantity produced by A and B?