2.11 Firms 1 and 2 produce differentiated goods. Firm 1s inverse demand function is p1 = 120...
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2.11 Firms 1 and 2 produce differentiated goods. Firm 1’s inverse demand function is p1 = 120 - 2q1 - q2, while Firm 2’s inverse demand function is p2 = 120 - 2q2 - q1. Firm 1 has a constant marginal cost of 24 and Firm 2 has a constant marginal cost of 36. What is the Nash-Cournot equilibrium in this market? (Hint: See Q&A 11.2.)
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Managerial Economics And Strategy
ISBN: 9780135640944
2nd Global Edition
Authors: Jeffrey M. Perloff, James A. Brander
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