13.14. An industry consists of two Cournot firms selling a homogeneous product with a market demand curve

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13.14. An industry consists of two Cournot firms selling a homogeneous product with a market demand curve given by P ! 100 " Q1 " Q2. Each firm has a marginal cost of $10 per unit.

a) Find the Cournot equilibrium quantities and price.

b) Find the quantities and price that would prevail if the firms acted “as if” they were a monopolist (i.e., find the collusive outcome).

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Microeconomics

ISBN: 9780470563588

4th Edition

Authors: David Besanko, Ronald Braeutigam

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Question Posted: Oct 15, 2024 05:03 AM

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13.14. An industry consists of two Cournot firms selling a homogeneous product with a market demand curve

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Microeconomics

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