Question
Firms A and B operate in a market with inverse demand given by p= 160- (9+9B). Their total cost functions are CA(94) = 9/2
Firms A and B operate in a market with inverse demand given by p= 160- (9+9B). Their total cost functions are CA(94) = 9/2 and CB(9B) = 3/2, respectively. The firms compete in quantities (Cournot competition). Denote by q and q the Nash equilibrium quantities in this game. What are q and q? Hint: Again, note that I gave you the total cost function for each firm, not the marginal costs. (a) q=24, q=24 (b) q (c) q= 40, q= 40 (d) q=20, q = 20 (e) q=30, q= 30 = = 60, 9=30
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Managerial economics
Authors: william f. samuelson stephen g. marks
7th edition
9781118214183, 1118041585, 1118214188, 978-1118041581
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