Compare and Contrast the Output Levels and Profits for the Cournot,Stackelberg,and

question 103

Essay

Compare and contrast the output levels and profits for the Cournot,Stackelberg,and Bertrand models.Use the following cost and demand conditions for your comparison,and suppose there are two firms:
P = 1,500 - 10Q.Each firm has a marginal cost of $20 and fixed costs of zero.

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, calculated before the period begins based on an estimate of total costs and activity levels.

Manufacturing Overhead

All indirect costs associated with manufacturing, including indirect labor, indirect materials, and other overhead costs that cannot be directly traced to specific items produced.

Work in Process Inventory

The cost accumulated for all materials, labor, and overhead for products that are partially through the production process.

Total Manufacturing Costs

The aggregate of all costs involved in producing a finished product, including direct materials, direct labor, and manufacturing overhead.