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Unformatted text preview: Industrial Organization: Exam 4 Instructor: Nick Galunic 18 December 2009 Instructions: This is a ”closed book, closed notes” exam. Calcu- lators are not permitted. Turn your cell phones off and put them away. Pencil use is recommended but not required. If you cannot get the arithmetic, just give your answers in an unsimplified form. For example, you may write 4(3) 3 . Write your answers in the space provided and limit open responses to a few sentences. Write your name on all pages. When you are asked to prove a statement, I expect you to present a concise mathematical response which es- tablishes the statement unequivocally. When you are asked to show the truth of a statement, come up with a simple example that jus- tifies it. Show all work and submit with the exam. You have eighty minutes. 1 Question 1: Two Cournot competitors face inverse market demand given by P ( Q ) = 22- Q . 1. Suppose marginal costs functions are the same for each firm, constant, and equal to 13. (a) Sketch the best response curves. Indicate the Nash equilibrium....
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This note was uploaded on 02/10/2011 for the course ECON 341 taught by Professor Galunic during the Spring '11 term at Rutgers.
- Spring '11