How to Solve a Cournot Oligopoly Problem

[@hadenwesley6548]

My professor made this seem like doing brain surgery while teaching Elon Musk about loop quantum gravity and how to better colonize Mars. This video is significantly better.

[@duaali1169]

Hahaha

[@t8506]

My professor didn't even bother explaining it he assumed it was common sense lol

[@iriskasonga8977]

day made ahahaha

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I full fully fully agree...

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[@regenschein6476]

With your videos I just learned Cournot, Bertrand and Stackelberg in one and a half hours! I owe you a lot, thank you very much!

[@Carriedeeznutz]

I have the worst professor I've ever had for Intermediate Micro. Unfortunately, the textbook (the same Varian one everyone seems to use for this class) doesn't do a great job explaining things either. I've been struggling to find any resources to help me, but this was one of the first times I've understood what was happening. I can't believe how simple this is. Thank you!

[@several.]

I could passionately kiss this man for making this 8:40min video which could have saved me the last three hours.

[@kimdaniel1091]

Omg I've been ransacking the whole Internet to find a post or video explains cournot theory to understand it. and this video is surprisingly terse and understandable. thank you for what you're doing for this world! :)

[@zethumtila]

I cannot thank you enough, I don't know why Lecturers do want to explain concepts, we didn't even get examples or even answers. Preparing for a test tomorrow.

[@EconomicsinManyLessons]

Good luck on your exam!

[@roydiga]

I just want to thank you so much. As a german native speaker i had to watch an english video to unterstand something my prof wasnt able to teach me in german in a couple hours.

[@BagasSept]

wow this explains better than my textbook

[@georgepanayotidis1494]

It's amazing how an 8 min video on KZbin is more helpful than 3 or 4 90 minute lectures at uni. Thanks man

[@nicholasvella5223]

Incredible explanation... I could not find a single post anywhere on the internet that explains Cournot equilibrium using the MR=MC point of profit-maximisation in such a SIMPLE way ... thank you!

[@raymondsun5669]

Staring my Prof's note for an hour and won't understand anything. This 8 minute video just taught me everything I need.

[@malumbomukonde868]

Not only were your computations accurate but your explanations to the answers were accurate too. Thank you!

[@oliverbarulis4448]

thank you for explaining so clearly! when my professor in my lecture explained this it seemed so much more difficult. you're a life saver!

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[@EconomicsinManyLessons]

I am glad you liked it, and thank you for sharing!

[@BSkwizzle95]

I seriously cannot thank you enough for putting this video out! I didn't quite get it in class and then it all clicked after watching this looool. Thanks again!

[@harveymusonda3230]

I spent almost the whole day to grasp my lecturer's notes😊😊... Your presentation just made me understand everything in a few minutes. Thank you

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[@zoan3217]

doubt you'll see this but you really helped me out, thanks

[@EconomicsinManyLessons]

That is great to hear!

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Dry asf that you only have 7.7k subs. Your channel is super helpful. Cheers for all this eh, appreciate it big time

[@rpaiva8867]

thanks man!! the professor lecture was so much more difficult! this is pure and simple!

[@matthewclapin5297]

Best video on Cournot around

[@EconomicsinManyLessons]

With the collusion outcome, we solve for the monopoly profit-max. output level and price. We will assume the two firms produce half the market output. Here's the math: P= 100 - Q. Now solve for total revenue to get TR = 100Q - Q^2. Taking the derivative of TR gives marginal revenue which equals MR = 100 - 2Q. Set MR equal to marginal cost. Because total cost = 40Q, MC = 40 MR = MC 100 - 2Q = 40. Solve for Q. Q = 30 (each firm produces 15 units of output) P = 100 - Q = 100 -30 = $70

[@scottagon]

Another way to solve this problem is by use of Cramer's Rule. This is done by simplifying the equation. In this case, 100-40=60 Firm 1 = 60-2q1-q2 Firm 2 = 60-q1-2q2 Use Cramer's rule. (-2*-2) - (-1*-1) = 3 (60*-2) - (60*-1) = -60 -60/3 = 20 (drop the negative in this case) Thus 20 is the equilibrium

[@arefemamian]

You are the best, thanks for amazing teaching method

[@LeonDeclis]

Thank you for this; better than the textbooks.

[@billydkidd8794]

thanks for making this breakdown look easy.. My teacher confused us for n hour

[@EconomicsinManyLessons]

You are welcome!

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I can't imagine you even give room for questions. This is being Human!

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Cómo te fue?🤔

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You saved my day. Was going crazy trying to solve that

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[@UNTILGOTHAMISASHES1]

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[@tianyuchu7157]

thank you so much! you are way more helpful than my professor

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you made this topic much more easier thanks a lot :)

[@DelaRosaB123]

thanks so much for this explanation, my proff is horrible at explaining this, hopefully I get an A on tomorrows midterm.

[@ifly5033]

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[@Jeffe46M]

Thanks you explained it way better than my professor!

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Quite easy. Good explanation. Thank ya. Greetings from Portugal !!

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You saved my assignment. Thankyou so much. God bless you.👌✌

[@nino16521]

This actually really helped. Thanks man.

[@mgwassa]

Just curious as to how he gets 3/4q1=15 instead of 1/1/4 0r 1.25 at the 6:59

[@candyfloss184]

JJ Sowa bro....notice carefully....it is q1 - 1/4 q1 which is 3/4 q1

[@KingxJDog]

oh shit ty, didn't see that either

[@Hiuga2016]

Thank you so much, you deserve more views, excelent content

[@qasemtv1737]

Danke 😊 please where is the 3/4 coming from??

[@supunifernando3117]

great i understood very well.

[@tasosGRvocals]

Your videos are really helpful, thank you!!

[@luciajimenez9666]

Thank you! This made it so much easier than my Professor, my TA and the book 😭

[@ugcneteconomicswithanj.5307]

Thank u sir... It's very clear explanation. U solved each step make it easy...thanks

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Thank you for the amazing video!

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Thank you! I love your Videos!

[@harshavardhanr7685]

keep up work sir. thank you

[@therealmissglamBAM]

This is so helpful, thank you! I'm just confused as to what the derivatives are

[@abubikkar986]

Sir,you made this easy Thank you so much sir ❤

[@angelacevedogarcia1895]

exactly what i needed

[@Hercules003]

Excellent video!I just understood this.

[@melissamurara8135]

Very well explained!

[@samuelwarui12]

Much thanks from the University of Nairobi

[@present1forever]

thanks for your effort but what if the MC for both firms are different ?

[@ShaneTN]

It doesn't matter brother, you just substitute the MC for your new firm, the way it's written on my questions is the costs are written as C sub i, where i stands for a specific firm (in this case 1 or 2).

[@МаркГригорьев-и6с]

VERY GOOD CONTENT THANKS FOR YOUR EXPLANATION

[@stiless2012]

Thank you for posting! This video was so helpful!

[@tshiamosegalo7415]

Thank you, you absolute king!

[@depatat1]

easy to understand, very nice

[@aaronraid282]

magisterial solution!

[@sohsaraaa]

Thank you so much! I was close to pulling my hair out in sectional class

[@curlieq20]

Thank you again, this was very helpful.

[@EconomicsinManyLessons]

Yes, if you are told that marginal cost of producing the goods for both firms is 2Q, then the marginal cost for firm 1 is MC = 2Q1 and the marginal cost for firm 2 is MC = 2Q2.

[@gustavomendss]

Thank you for the excellent explanation! its a nice video !

[@titoconfectioneries2951]

Thank you so much for this Here is a quick question how to get 3/4q1 and also suppose the two firms are to merge.The department of justice will only permit them to merge only if it is convinced that the price of the product will not be higher than the Pre-merger price.The post merger cost function is of the form c(Q)=XQ. Determine the value(s) of X for which the Justice department will deny them the merger.

[@mssh1nky]

Thanks! This is extremely helpful!

[@ratioveritas9983]

4 quick questions: a) if n No. of firms and n different MC, we should indicate so while solving n equations, right? b) if we did know the amount the other producer would supply, would that be like a price leadership problem, where total demand minus its supply is the other's D, right? c) is this not equivalent to Nash equilibrium? LIke the least bad option considering any amount the other might produce? d) D'u have vids on price bundling? Thanks.

[@khuselwandudula6851]

Wow. Better than my lecturer, there might still be hope o pass after all

[@MUFC291196]

I'm a bit confused at 2:20. How do you get 2Q1? Should've Q1 squared divided by Q1 just be Q1? How is it 2Q1?

[@EconomicsinManyLessons]

MUFC291196 I'm not doing division here but rather taking the partial derivative of the TR function with respect to q1. I have a video on taking derivatives that should help.

[@Wackyboo8]

best explanation ever. thanks!!

[@jenniferelisa]

so ready for my exam after this!

[@mrmoe5272]

You saved me in my Econ-401 Final

[@tamarabanda7819]

This was soooo helpful

[@Semnyawenda]

thank you very much sir, this was very useful

[@garretschweng]

Great vid, what do you do if you have more than 2 identical firms?

[@memorylouis3078]

thanks for explaining better

[@militcyanosamuelsapulette1930]

Marvelous. Thanx man!

[@elinekeemink5668]

great explanation! Thank you for posting!

[@dai7169]

Great video bro, thanks !!

[@BenedictaAddison-r5q]

Please can I use the same process if the goods are differentiated.

[@ahmedabdidahir8897]

please can you resolve this question! Assuming two players in the market, with the assumption that each control half of the market initially with their main target being output maximization, Suppose Q=90-P, with necessary illustrations, (a) Determine market Equilibrium under oligopoly. (b) Given the functions, P= 100-0.5(X1+X2) and cost functions described by C1 = 5X1 and C2 = 0.5X22 a) Find the profit made by each firm if equilibrium under oligopoly is achieved b) Calculate the MR of each firm at equilibrium

[@shawnatmar39]

Very helpful, thank you!

[@theCheech8]

Absolutely incredible thank you so much

[@Jaiho-cl1jr]

HOAA ! wow thank you for your great tutorial,, gonna continue on the next episode. keep it up