Suppose that the market demand function is given by p = a b(q1 + q2 )

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Suppose that the market demand function is given by p = a – b(q1

+ q2

)

as in Section 6.1.1. Each firm has zero fixed costs and constant marginal cost of production

c. An increase in demand causes the demand function to shift upward, reflected by an increase in the parameter a to What effect does this have on each firm’s reaction function, and the Cournot equilibrium?

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Managerial Economics A Strategic Approach

ISBN: 285451

2nd Edition

Authors: Robert Waschik ,Tim Fisher ,David Prentice

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Question Posted: Oct 08, 2024 07:01 AM

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Suppose that the market demand function is given by p = a b(q1 + q2 )

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Managerial Economics A Strategic Approach

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