MobLab

Instructions

Aa

- Each season, each scooter producer simultaneously chooses how many scooters to produce.
- You pay a cost for each scooter your firm produces.
- This per-scooter cost is the same for all firms.
- The season’s market price depends on the total produced by all firms.
- Use the slider in the upper-right of your screen to investigate the relationship between total market production and the resulting market price.
- Use the slider at the bottom of your screen to choose your firm’s production.
- To choose the quantity in your production slider, press PRODUCE.

- Each of two firms pays $6 per scooter produced
- One firm chooses to produce 10. The other chooses 9.
- Suppose the resulting market price is $11.

Payoff | = | items sold | x | (price - cost) | ||
---|---|---|---|---|---|---|

Firm 1 | = | 10 | x | ($11 - $6) | = | $50 |

Firm 2 | = | 9 | x | ($11 - $6) | = | $45 |