The inverse market demand in a homogeneous-product Cournot duopoly is P = 100 2(Q1 + Q2)
Question:
a. Determine the reaction function for each firm.
b. Calculate each firm’s equilibrium output.
c. Calculate the equilibrium market price.
d. Calculate the profit each firm earns in equilibrium.
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a b Q 1 16 Q 2 12 c P 100 2...View the full answer
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Related Book For
Managerial Economics and Business Strategy
ISBN: 978-0071267441
7th Edition
Authors: Michael R. baye
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