2. The inverse market demand in a homogeneous-product Cournot duopoly is P 100 2(Q1 +...

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2. The inverse market demand in a homogeneous-product Cournot duopoly is P 100 2(Q1 + Q2) and costs are C1(Q1) 12Q1 and C2(Q2) 20Q2.

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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Managerial Economics And Business Strategy

ISBN: 9780073375960

7th Edition

Authors: Michael Baye

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Question Posted: Oct 07, 2024 07:03 AM

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2. The inverse market demand in a homogeneous-product Cournot duopoly is P 100 2(Q1 +...

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